A record $51.3 billion (£38.1bn) has been invested in global healthtech this year, up 280% on 2016 levels.

The COVID-19 pandemic has catalysed investment in an already growing healthtech sector, with new funding highs reached for companies using technology to improve research, delivery, payment and consumption of care.

The US leads globally with $31.9 billion (£23.7bn) in venture capital investment so far this year, with China’s $4.1 billion (£3bn) occupying second place and the UK coming in close behind at $3.8 billion (£2.8bn).

The figures come from London promotional agency London & Partners and database management company Dealroom.

THE LARGER TREND

The most significant increase was seen in the UK, where healthtech investment has risen by nine times (with US investment increasing by 3.4 times).

In Europe, London is the leading hub for healthtech investment over the last five years, with investment growing 11.1 times faster than in the Bay Area, New York and Boston.

UK research centres London, Oxford and Cambridge form a ‘Golden Triangle’ which is home to 508 healthtech startups which have been receiving increasing interest from venture capitalists between 2016 and 2021. The majority (408) of these companies are London-based, with a total value of $21.3 billion (£15.8 billion), the largest in Europe.

Enterprise technology is not the only sector receiving increasing investment. The fastest growing subsector in London is remote monitoring and wearables, raising $345 million (£256.4 million) so far this year, up from $17 million (£12.6 million) in 2016. Other fast-growing healthtech subsectors in London include drug development with AI, home test start-ups and digital health insurance.

ON THE RECORD

Laura Citron, CEO at London & Partners, says: “These findings demonstrate that the UK and US are leading the way for innovation in this sector and tech hubs like London, the Bay Area and New York are key partners for collaboration.

"The UK’s Golden Triangle is home to world-class universities for life sciences and medicine, a deep research and development landscape and dedicated funding and government support. These factors make London, Oxford and Cambridge a world-leading innovation hub for life sciences and healthtech.”