The European Digital Health Ecosystem Remains Stable

Europe’s Digital Health sector experienced a mixed bag in H1 2024. While European Digital Health Funding H1 2024 witnessed a strong start with a 48% surge in Q1 compared to the previous quarter, a weaker Q2 resulted in a 7% decline in overall funding year-on-year. Despite challenges, the region shows resilience with improving venture capital inflows and a lower funding stress environment compared to other major markets.

Galen Growth is pleased to share with you our 2024 Mid-Year Analysis on Digital Health Innovation in Europe. We analyze the current trends driving demand in the European Digital Health startup ecosystem, focusing on private ventures. Our report covers ecosystem growth, most active partners, regulatory approvals, and venture funding.

This report is powered by HealthTech Alpha, our proprietary solution and the world’s leading Digital Health private market data, intelligence, and insights platform. HealthTech Alpha offers unmatched, non-biased, and data-driven coverage of the global Digital Health ecosystems.

H1 2024 Digital Health Funding Highlights in Europe

• Q1 2024 Funding Surge and Weaker Q2: Europe experienced a 48% increase in Q1 funding compared to Q4. However, a weaker Q2 led to a first-half performance of $1.5 billion, 7% lower than H1 2023.
• Global Share Decline: Europe’s Digital Health funding accounted for 12% of global funding, a year-over-year decline of two percentage points.
• Biopharma Leads Collaborations: Biopharma companies led 21% of all collaborations in H1 2024, highlighting the potential of AI and big data in drug discovery and development.
• Digital Therapeutics Focus: Patient solutions, including digital therapeutics, received $396 million in venture capital over 27 deals. Notably, 20% of all ventures with significant clinical evidence in Europe are in this cluster.
• AI Investment Surge: In 2024, AI-driven ventures received 65% of the total funding for European-founded ventures, even though only 43% utilized AI technology.

Ventures and Companies Covered in the Report:

The “2024 Mid-Year Digital Health Europe Key Trends Report” includes data on the following companies:

Mika, Quantro Therapeutics, Isomorphic Labs, SOPHiA Genetics, apoQlar, SWORD Health, Labgenius, Medical Microinstruments, Biofidelity, Onera Health, Genomics PLC, Nabla, Pelago, Natural Cycles, Bioptimus, Relation Therapeutics , Quantum Surgical, Resilience, CluePoints, PINK!, LYKON, Sonio, Coala Life, Iktos, Charac, Heartbeat Medical, Doctolib, AstraZeneca, Boehringer Ingelheim, Novartis, Nvidia, Mayo Clinic, Daiichi Sankyo, Italfarmaco, ECG Training, CSS Insurance, Élap

Read our other regional H1 Key Trends reports

Download our complimentary H1 2024 Digital Health Funding: Global Key Trends Report, or our premium reports on the United States and Asia Pacific:

• 2024 Mid-Year Digital Health in the United Stated Key Trends Report
• 2024 Mid-Year Digital Health in Asia Pacific Key Trends Report

Additionally, we release regional analyses in our blog.