Europe Digital Health Ecosystem 2022 Year End Report
Galen Growth is pleased to share with you our 2022 Year End insights and deep dive into the Europe Digital Health Ecosystem. We focus our analysis on the ecosystem key trends, through the lens of:
- Key categories
- Disease areas
- Noteworthy partnerships
- Regulatory approvals
- Venture funding
HealthTech Alpha, a Galen Growth proprietary solution, powers this report!
- Digital Health Headlines
- Ecosystem Insights
- Investment Insights
- Cluster Focus
- Therapeutic Focus
- Deep Dives
- What’s Next?
- Digital Health has its feet back on the ground after the extraordinary 2-year pandemic period funding spree. In this year of geopolitical turmoil and looming economic recession, Digital Health is nevertheless proving resilient, with Europe deploying funding that exceeds the pre-pandemic levels of 2019 by 1.5x and ventures submitting more than 174 regulatory filings, nearly equal to the number of regulatory filings in 2021.
- In Europe, funding for Early Stage and Series A ventures remained strong, with -12% and +30% YOY change, respectively. France overtook the United Kingdom for the top funding spot, with $1.79B of funding (+38% YoY). Europe concluded the year with an annual venture funding value of $4.76B, a YoY deficit of 12% below 2021, ushering in a new phase for Digital Health, with less extravagance and higher expectations for proof points and ROI.
- While IPOs were absent from the European Digital Health ecosystem in 2022, M&A activity gained momentum, with a 1.7x YOY increase. Industry consolidation is becoming stronger, with Digital Health ventures accountable for 60% of global acquisition activity. Acquisitions are being fueled by the slowdown in venture funding, with an average of only 59% of Growth Stage ventures having raised capital in the last 18 months in Europe.
- Ventures in the Population Health Management cluster had an exceptional year, with venture funding jumping 374% YOY over 2021 and capturing the second highest investment volume share (13%). The acceleration was fueled by all 8 of the Mega Deals in Europe, to reach $601M of total funding for the year.
- Digital Health ventures in Europe will find the path forward in 2023 to be more challenging, with declining venture valuations, but ventures have already shown resilience in 2022, and this new landscape will strengthen the pipeline of ventures, driving innovation and business model viability further to show the value of Digital Health tools for improving healthcare research and delivery.
Source of Data
HealthTech Alpha, Galen Growth’s proprietary on-demand platform, is the data source for this report. With more than 250 million data points HealthTech Alpha is the leading Digital Health intelligence and analytics platform. Moreover, its coverage exceeds 12,500 Digital Health ventures globally. To find out more about our data, visit https://www.healthtechalpha.com/, or visit https://www.galengrowth.com/research for our reports.
Founded by HealthTech innovators, Galen Growth solves global healthcare system pain points and to create significant financial and social values. To find out more: https://www.galengrowth.com/