Healthcare Author: WIM Committee, Summ Ji Dec 11, 2020 07:35 PM (GMT+8)

On December 9-12, EqualOcean is holding the World Innovators Meet (WIM) 2020. This year, the event's main topic is 'Technology and Innovation Connect the World.' WIM2020 gathers innovators from Asia, Africa, Europe and the Americas to share their knowledge and key achievements, promoting the concept of 'Tech for Equal.'

G50 Healthcare

In 2020, as COVID-19 spread around the world, people began to pay more attention to the healthcare industry. The crisis of the pandemic has led directly to significant changes in the healthcare industry across the globe, changes which carry both opportunities and risks.

For seeking valuable healthcare enterprises, we compiled info on the latest trends:

Trends of the “Top 4 Primary Market”

The United States

·       The healthcare industry is relatively mature in comparison with other markets. Investment events often occur from seed round to B round, there are many startups are constantly active. 

·       Biotech & Pharma companies received the highest investment value among all sub-industries in the primary market, accounting for 56% of total investment in the United States healthcare industry.

·       The Medical Devices sub-industry is accounting for only 10% of the total investment in the United States market.

·       Many digital health start-ups have been born in recent years and growing rapidly.

China

·       The investor willing to invest the companies within A to C funding rounds, and they also make some investments at a late stage before IPO (after C round).

·       Biotech & Pharma financing accounted for 53% of the total financing amount, which is similar to the United States market.

·       In the Medical Devices sub-industry, investment events are concentrated in the A-C rounds.

·       The Digital Health sub-industry is in an early stage of development with many new innovative crowds.

·       In the Healthcare Service sub-industry, many companies in middle stages are active.

Europe

·       Biotech & Pharma companies accounted for up to 60% of the total financing amount in the primary market.

·       The Healthcare industry's primary market in Europe is similar to the United States, in which early-stage investment (Pre-seed to series B) events have higher proportion.

·       Seed, Series A and B are the top three rounds with the highest number of investment events in both the Biotech & Pharma and Medical Devices sub-industry. 

·       Digital Health and Healthcare service sub-industries are popular, especially in its early

Israel

·       Compare to other regions, in Israel, the value of investments in four are relatively even.

·       Start-ups in the Biotech & Pharma sub-industry are diverse, which include both emerging and mature start-ups.

·       In the Medical Devices sub-industry, investment events are concentrated in the middle stages (after B round).

·       In the Digital Health sub-industry, there is vigorous development of start-ups.

·       For the Healthcare Service sub-industry, unlike the United States and Europe, fewer investment events occur in the early stages.

·       stage of investments (Pre-seed to A round).

Innovation Hotspots in Global Healthcare Industry  

Biotech & Pharma

The Biotech & Pharma sub-industry is always the hotspot in the healthcare industry. Anticancer drugs, nervous system disorders treatment and early cancer detection are the focus of the healthcare industry.

In the field of anticancer drugs, Chinese companies develop rapidly. Many Chinese start-ups have made breakthrough progress in research and have received a considerable financial support.

In the anticancer field, immunotherapy, “CAR-T is extremely hot”. Gene therapy, small-molecule drugs, and oncolytic viruses are also popular.

Neural system disorder treatment in the United States primary market has also shown strong vitality. Numerous start-ups conduct various research and innovations.

Early cancer detection has received significant attention in the European, American and Chinese investment crciles; this is also closely related to the global trend in recent years, shifting the focus from treatment to prevention. Many early cancer detection institutions have received vast amounts of investment this year, which also demonstrates the market's confidence in this field.

Digital Health

Innovation and vitality are the two key words for start-ups in the digital health sub-industry. As a technology that can help doctors diagnose, drug/device suppliers operate the business, and patients manage their health, digital health's favorable policies have been introduced in various countries.

In recent years, cloud computing, big data analysis, artificial intelligence, the Internet of Medical Things, 5G technology, etc. are developing fast.

The development of policy and technology are two driving forces of digital health; and they are promoting digital health globally.

There will be more applications of digital health and more ways to apply new technology to the healthcare system in the future. Moreover, investors will have more decadent investment options for companies in this sub-industry.

Medical Devices

For start-ups n medical devices sub-industry, the investors' activity is sluggish in the United States market. The amount of investment in this sub-industry only accounts for 10% of the total.

The low number of investment events is mainly due to the high maturity of the United States' medical devices market. There are many large companies with multiple core technologies and continuous innovation and development. Therefore, there are few chances for start-up medical device companies in the United States market to get attention.

In contrast, investors in the Chinese market are more willing to invest in innovative start-ups in the medical devices sub-industry. Chinese medical devices market is not yet in a mature stage like the European and American markets. Numerous high-value medical consumables and large-scale, high-precision medical devices still rely on imports. Therefore, innovative medical device companies have more opportunities due to the gap in demand.

Healthcare Services

In the Healthcare Services sub-industry, many European and American startups grow rapidly. Among them, most of these companies are an online healthcare provider.

COVID-19 is the primary driving force for the online healthcare provider. Due to the pandemic, people are willing to visit clinc online instead of ‘walk-in’.

However, in China, healthcare service sub-industry investment only accounts for 10% of the total investment.

The concept‘Internet Hospital’ was pretty popular in China a few years ago. Nowadays, most "Internet Hospital" companies have entered the mid-to-late stage of financing or even IPO. The giant companies in the field are also forming. Therefore, China has few related innovative medical service startups this year.

Next 50 in Global Tech: Healthcare

When looking into the long-term, ignoring the short-term impacts introduced by the pandemic, EqualOcean found that many companies dedicate in delivering new insights and technologies in Digital Health, Medical Devices, Biotech & Pharma and Healthcare Services areas.

Resulting from continuous industry analysis, EqualOcean has compiled the ‘Next 50 in Global Tech: Healthcare’ list, which contains selected healthcare start-ups that are likely to reshape the industry landscape in the near future.

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Note: For illustrative purpose only. We are not soliciting or recommending any action based on this material. Categories are not mutually exclusive and companies are sorted by primary use case. Our selection only covers the companies that raised new funding or developed rapidly in 2020, and founded within 7 years.

Next 50 in Global Tech: Healthcare

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About WIM

Hosted by EqualOcean, the World Innovators Meet (WIM) (click to watch the online event on December 9-11, 2020) is a global event for innovators. It provides limitless opportunities to learn from and connect with the most sought-after technology pioneers.

About WIA

The World Innovation Awards (WIA) are announced at WIM to recognize game-changers across various industries and geographies. Selected by a committee of distinguished experts, entrepreneurs and investors, WIA are designed to acknowledge technology disruptors striving to make a positive impact on a global scale.

See this year's WIA lists and download the research reports in English and Chinese on EqualOcean and 亿欧智库 respectively.