European healthtech companies raised $11.6B in 2024

Healthtech is booming. Last year alone, European healthtech companies raised a staggering $11.6 billion, making it the most-backed sector of 2024. And it's no wonder — breakthroughs in AI, chemistry, and biotech are accelerating innovation at an unprecedented pace. The result? A wave of cutting-edge technologies and concepts that have the potential to transform global healthcare.

For VCs, the game is about spotting the hidden gems — the startups tackling deep-seated health issues, leveling inequalities, and giving people more control over their well-being. The next generation of transformative healthtech is already taking shape, and here's where investors are placing their bets.

The most promising areas

Here are some of the areas VCs have backed in Europe last year:

• The power of proteins: We're just scratching the surface of protein interactions and their role in drug discovery. DeepMind's AlphaFold changed the game by predicting the structures of 250 million proteins, unlocking a treasure trove of biological insights. "With its work cited over 28,000 times, the ripple effects on disease prevention and drug discovery are set to be profound." Startups like A-Alpha Bio and Latent Labs are capitalizing on these insights, using AI to push therapeutic boundaries.
• Breaking open the biobank: If banks store wealth, the UK Biobank stores health. A goldmine of patient data, it offers a pathway to more targeted, data-driven interventions. Nightingale Health, for instance, leveraged blood samples from 500,000 Biobank participants to build the world's largest blood biomarker database, paving the way for earlier disease detection. Investors are keeping a close watch on startups using both existing and newly generated data to fine-tune diagnostics, streamline clinical trials, and develop next-gen treatments.
• Going further with GLP1s: Initially developed for type 2 diabetes, GLP1 drugs — commonly known as weight-loss injections — are proving to have broader applications, from curbing addictive behaviors to slowing Parkinson's progression. But innovation isn't just about new use cases. "With the continued rise of GLP1s, there are also enormous opportunities to address the side effects they cause and improve the delivery mechanism." This means better dietary coaching, smarter drug formulations, and ultimately, long-term health improvements rather than quick fixes.
• AI as an accessibility tool: Healthtech isn't just about breakthrough treatments; it's also about breaking down barriers to healthcare. A personal anecdote illustrates the problem: "Just last month, I got a Doctor's letter for my son that was so filled with acronyms and jargon, I felt like I needed a PhD to understand it." AI tools can decode complex medical jargon in seconds, making health information more accessible — especially for marginalized communities and elder care, where clear communication is critical.
• Meeting mental health needs: The mental health crisis, especially among young people, is screaming for solutions. Rising anxiety, fueled by social media pressures, demands a new approach. The problem is particularly acute in minority and low-income communities where access to care is uneven. Emma Silverman, Partner at TMV, highlights a key bottleneck: "Over half of master's level graduates in mental health fields never obtain their practice license." Companies like Motivo Health are stepping in, helping therapists complete their supervision hours and get licensed faster, expanding access to much-needed mental health professionals.

Why does it matter?

Healthtech isn't just about making a profit — it's about solving some of humanity's biggest challenges. By unlocking the potential of proteins, biobank data, AI, and emerging drug therapies, these innovations have the power to:

• Revolutionize drug discovery, cutting development time and costs
• Improve accessibility to healthcare information and mental health support
• Provide more targeted treatments, reducing side effects and personalizing care
• Address long-standing inequalities in access to life-saving interventions

With the right technology, billions of people could lead healthier, fuller lives. That's the kind of impact VCs are chasing.

The context

Healthcare isn't just another industry — it's an ecosystem that directly affects every person on the planet. Societal shifts, economic pressures, and scientific breakthroughs are colliding to create a moment of immense opportunity. Whether it's the global rise of chronic diseases, the aging population, or the increasing demand for more personalized care, healthtech is no longer a niche play. It's a necessity.

From AI-driven accessibility tools to groundbreaking therapeutics, the next wave of healthtech is here. And for those paying attention, the opportunities to change the world — and build the next generation of healthcare giants — have never been greater.