In 2023, European start-up investments saw a 36% decline

3.08 billion euros: this is the amount raised by European start-ups in the e-health (digital health) sector in 2023, or 36% less than in 2022. A figure revealed by the French multi-stage investment company Karista, which published its fourth European map of digital health funds on April 2. Investments in French start-ups, which represent almost a third of the European amount (nearly a billion euros), are down 40% compared to 2022, but more important than the 577 million euros raised in 2021.

An average ticket divided by 2

In addition, the average fundraising ticket was divided by 2 to 10.1 million euros compared to 20 million euros in 2022. The valuations of e-health start-ups also returned to levels observed before the Covid-19 pandemic.

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Despite an overall drop in financing, Karista notes some positive signals, with a very slight increase in transactions concluded (306, 301 in 2022). More than 3,000 companies now specialize in e-health in Europe, with their number tripling in the last three years.

Karista also observes an increase in funds having invested in European e-health (in three different companies), which number 217, or 29% more than in 2022. Among these 217 funds, 49 are French. Nearly 6 out of 10 funds invest in early stage, while the proportion of multi-stage investors stands at 30%. 12 companies are investing in late stage, including 2 French (Eurazeo and Quadrille Capital).

France in first place in European funds

France maintains its first place in European funds investing in e-health (24%), followed closely by the United Kingdom (21%) and Germany (18%). The study also points to a boom in “super-investors”, having invested in more than 10 companies: 55 were identified, i.e. 44% more than the previous year.

Two sectors particularly stand out this year in e-health: on the one hand, robotic surgery, with two fundraisings exceeding 100 million euros (CMR Surgical and DistalMotion). On the other hand, pharmatech, whether in investments or collaborations (Aqemia, Owkin).

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The venture capitalist says he is confident about the future: “After an intense phase of business creation, we are entering a growth phase (…), which should lead to the emergence of more mature companies looking for funds.”

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