Investing Insights: Healthcare | Seedrs

When investing, your capital is in danger.

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Amidst Covid-19 considerations, the well being and wellness area has taken the highlight, attracting unprecedented ranges of funding from institutional and retail buyers alike. Whereas developments in well being expertise might have been a strategic response to a worldwide disaster, we anticipate to see progress in innovation and funding on this sector in 2021 and past.

Right here’s why we’re protecting a detailed eye on the healthcare area.

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Funding in healthtech is on the rise

Healthtech companies are capturing the eye of institutional buyers, attracting $16B of VC funding globally in 2020. A lot of this was invested into various care suppliers, together with telehealth, AI-powered diagnostic options and psychological well being platforms. Whereas fintech nonetheless tops the listing in funding, healthtech noticed the biggest leap in institutional funding of every other sector. 

Healthtech disruptors reminiscent of dwelling care startup Lifted, whose £1.6M seed spherical was led by Gasoline Ventures in July, have turned the heads of VCs not too long ago. Different prime raises embody french insurtech Alan, which raised €50M in April from Index Ventures and Temasek, and Swedish doctor-on-demand startup Kry, which raised €140m in January from Index Ventures, Creandum and Accel. The frequent denominator amongst VC picks? Strong tech infrastructures that enhance the standard of care, scale back prices and enhance accessibility for shoppers whereas tackling the scalability challenges of trade incumbents.

Well being and wellness innovation has additionally develop into a sizzling subject for retail buyers. The variety of health-related companies fundraising with Seedrs shot up 183% in 2020, with investor urge for food for alternatives within the area rising rapidly alongside it. Many prime healthcare raises on Seedrs garnered assist from retail buyers together with braincare complement Heights, digital care supplier Q Physician, wellness supplier Span Well being and behavioural change platform One 12 months No Beer – which introduced on board over 2,000 retail buyers mixed. You’ll be able to take a look at secondary alternatives in every of those corporations on our Secondary Market*.

Telehealth is the brand new regular

Previous to 2020, 95% of affected person contact with medical professionals was face-to-face. Restrictions on motion have accelerated large-scale adoption of digital well being companies, and expertise corporations are racing to capitalise on modifications in regulation as governments deal with the virus. The telehealth market was value $45 billion in 2019 and is predicted to see 19.3% compound annual progress (CAGR) till 2026. Whereas the transition to on-line well being was remarkably fast as a result of disaster, the healthcare trade is probably going modified ceaselessly – and for the higher. Deloitte reported {that a} swap to digital care can scale back medical paperwork by 60%, whereas giving sufferers as much as 29% extra face time with medical professionals.

Many Seedrs buyers had been capable of assist energy the telehealth motion. On the top of the pandemic, digital well being startup Q Physician, which raised over £1.2M from greater than 520 buyers on Seedrs, joined forces with the NHS to scale back in nose to nose outpatient appointments and assist over 300 medical professionals to return to work remotely, utilizing its progressive digital workspace and on-line video consultations answer, Q well being. In the event you’re taken with proudly owning shares in Q Physician, regulate the Secondary Market, the place sharelots could also be listed with provides beginning at £4.24.

Q Physician is one among over 3,800 healthtech corporations within the UK paving the way in which for higher, extra accessible options for its customers. As we transfer ahead into 2021, we’ll be seeking to fund much more healthtechs like Q Physician, permitting our buyers to take a place within the telehealth market.

Wellness has taken centre stage

Disruption of day-to-day life has led to an increase in shopper demand for options that increase total wellness, happiness and psychological stability by means of making an attempt instances.

In 2020, as gyms and studios throughout the nation are pressured to shut, and 15.6 million folks within the UK at the moment are utilizing some type of health app day by day, with downloads globally surging by 46%. And health isn’t the one factor shoppers are searching for in a brand new, digital regular. The very best grossing app in Q2 of 2020 was psychological well being platform Calm, at $8.5 million in complete income. The psychological well being large closed a $75 million spherical at a $2.2 billion valuation in 2020, led by Lightspeed Enterprise Companions, alongside Perception, TPG and Salesforce CEO and new proprietor of Slack, Marc Benioff. 

Seedrs buyers have additionally been capable of partake within the progress of the marketplace for distant options. In August of 2020, over 900 buyers supported wellness and sweetness platform City to boost over £5.Eight million. As extra alternatives go stay on the platform, retail buyers are focusing consideration on tech options – each stay and on the Secondary Market – that may ship psychological and bodily wellness remotely and conveniently.

Why we’re watching the healthcare area

As we speak’s shoppers need comfort and ease – whether or not they’re pressured to remain at dwelling or not. Each private and non-private corporations world wide have confirmed that accessible well being and wellness for all is achievable. Prior to now yr, we’ve witnessed a vaccine that might have taken 10 years to develop and deploy, reaching tens of millions world wide in below one. Widespread enhancements in pharmaceutical scientific trial applied sciences will solely proceed to empower biotech innovators to carry essential medicines to market, quicker.

Whereas life will return to regular, the healthtech market reveals no indicators of slowing. We’re trying ahead to serving to fund extra companies with huge concepts for the way forward for well being, and in flip, serving to our buyers share within the progress of a sector on the rise. 

To view stay funding alternatives in healthcare, go to right here. 

To buy shares in healthcare startups on the Secondary Market*, go to right here.

*Not all shares will probably be eligible for the Secondary Market and, even when they’re, the flexibility to purchase and promote shares will depend upon demand. It may be troublesome to discover a purchaser or vendor, and buyers mustn’t assume that an early exit will probably be obtainable simply because a secondary market exists.