Taking the Temperature of the HealthTech Sector

Today we have released the UK’s inaugural HealthTech index using data from Beauhurst – a snapshot of a sector worth £32bn to the UK economy, and employing nearly 30,000 people. The Index is the first step in our increased focus on a vital sector for the UK’s economy.

For eight decades, the UK has been a global frontrunner in healthcare, through the pioneering NHS, cutting-edge universities and a world-class pharmaceuticals industry. These have been the seeds of the rapidly expanding HealthTech sector in the UK.

 

Startup Coalition’s HealthTech Index, which has dived into the data of the top 1,000 firms in the UK, shows:

The top 1,000 UK HealthTech startups reached a collective valuation of £32bn by the close of 2024.

These startups have raised a combined £27.4bn in capital, with the average firm securing £9.6m, and the UK is home to three HealthTech unicorns today, with six that have successfully exited.

These innovative companies have also attracted £865m in grant funding.

As of the end of 2024, startups featured in the HealthTech Index employed almost 30,000 individuals across the UK.

168 firms from the Index have achieved an exit, signalling a mature and dynamic ecosystem.

One fifth of the startups in the HealthTech Index had at least one female founder. This is marginally better than the ecosystem at large (18%).

 

These pioneering startups are at the forefront of transforming how  healthcare is delivered, merging cutting-edge technology with breakthroughs in biological science. UK-based startups are developing solutions from AI-powered diagnostics and digital therapeutics to next-generation drug discovery and precision medicine, tackling some of the most critical health challenges.

With increasingly international competition though, the UK cannot be complacent, and policy change is necessary to help these startups succeed.

 

This is why the report calls for:

NHS procurement reform: A reformed, structured approach to NHS procurement is crucial to unlock the full potential of the UK’s HealthTech startup ecosystem and facilitate the adoption of innovative solutions.

Innovation pathways: Scaling existing NHS-backed accelerator programmes and enhancing their operational efficiency and coordination will provide better support for startups navigating the healthcare landscape.

University spinouts: To encourage the growth of university spinouts into substantial national businesses, the Government should reassess its guidance to university technology transfer offices, advocating for a lower average equity stake to foster founder incentives and future investment.