HealthTech has always been a sector closely followed by our ecosystem. Across Europe, HealthTech startups have raised over $10.4 billion in funding this year, an increase from $9.3 billion in 2023. This funding recovery, after two years of stagnation in Europe, has breathed life into a sector that is not only transforming how we live but also how long we live.
At our HealthTech roundtable, it was amazing to witness the diversity of speakers and participants. Walking around the event, it was inspiring to see the people driving this ecosystem forward. This article provides an overview of the key ideas and trends discussed across the four panels we hosted.
Written by: Tanay Sonawane
AI in MedTech: Opportunities and Challenges
Revolutionising Diagnostics and Efficiency
AI is redefining healthcare delivery, particularly in diagnostics and operational efficiency. Emilie Mercedal (Co-founder & CEO, Rafim) highlighted AI’s ability to automate time-intensive tasks, enabling clinicians to spend more quality time with their patients. Emilie stressed that AI should enhance the patient-clinician interaction rather than replace it entirely. With 44% of UK physicians no longer taking on new patients due to workload, solutions that increase clinician efficiency are more critical than ever.
Hamza Rafiq (Investor, Gresham House) drew attention to imaging and triaging as key areas where AI has made significant strides. AI tools can analyse medical images to diagnose health issues and prioritise patients based on the severity of their symptoms, ensuring those in urgent need receive care promptly. These applications have already helped alleviate inefficiencies in GP surgeries and hospitals.
Data: The Open-Source vs Proprietary Debate
An important discussion centred around the data used to train AI models. Hamza pointed out that while open-source data democratises innovation, concerns over intellectual property can hinder its widespread adoption. A hybrid approach—leveraging both open-source and proprietary data—offers a balanced solution. Using diverse data sources enhances the quality of AI models while maintaining competitive advantages for businesses.
AI’s Journey to Full Integration
The integration of AI into clinical workflows remains a long-term challenge. Pietro Arina (Co-founder & CEO, Lapis AI Studio) introduced the concept of AI as a “co-pilot for doctors.” Rather than replacing human expertise, these tools act as superpowered assistants, accelerating diagnosis and treatment. However, trust in AI is still a barrier, particularly after mixed results in medical imaging trials. Tailored solutions that address specific healthcare needs are essential to building acceptance among clinicians. Over time, as AI focuses on complementing human expertise rather than competing with it, trust is likely to grow.
Trends, Challenges, and Routes to Success in HealthTech
Regulatory Bottlenecks
The NHS represents a unique environment for HealthTech innovation due to its centralised structure. However, its complex framework of trusts creates significant barriers for startups trying to develop, test, and scale their solutions. Jane Guest (Interim Innovation Lead, Innovate UK) noted that while the NHS is a critical market, it is also one of the hardest to penetrate due to its complexity and slow adoption of new technologies. To foster innovation, clearer regulatory frameworks and more agile testing environments within the NHS are urgently needed.
Scaling Innovation Amid Fragmentation
Expanding beyond the NHS and into global markets presents additional challenges. Nipun Jain (Head of Innovation Hubs, AstraZeneca) highlighted the difficulty of scaling innovations from developed countries to lower-income nations. Startups working in emerging markets often face infrastructure and funding gaps.
The Next Decade in HealthTech
The next 10 years will see transformative technologies like AI, quantum computing, and digital twins drive the sector forward. Jane Guest predicted that these advancements will enable greater personalisation in patient care, particularly in early detection and treatment systems. Neciah Dorh (Co-founder, FluoroSat) envisioned a future where home-based healthcare and even drug manufacturing in space become mainstream.
However, the panellists were united in acknowledging the pressures on healthcare
systems. With ongoing clinician strikes and increasing burnout, AI has the potential to reduce the strain on practitioners if integrated properly—making its adoption more urgent than ever.
Investment Strategies in HealthTech
Our panel on VC perspectives offered invaluable insights for founders seeking funding. Panellists included Matthew Konneh (Atheneos Ventures), Clara Ezed (Clarma Capital), Shamik Parekh (HSBC Innovation Banking), and Paulo Pio (Exceptional Ventures). It is also interesting to see the thought process of investors in the healthtech space, and how they are choosing the best ideas.
What Makes a Good HealthTech Business?
Strong Science and Expertise: Startups must be grounded in rigorous science and led by teams with deep domain knowledge. Matthew emphasised that founders with personal connections to the problem often bring sharper focus and greater passion.
Clear Problem-Solving Mission: Clara highlighted the importance of articulating not only what the business aims to solve but also a vision for a 10-year exit. Long-term thinking reassures investors about scalability.
Team and Execution: Shamik stressed that execution often matters more than the initial idea. Strong leadership and a proven track record of delivering on milestones are critical to success.
Red Flags for Investors
Dismissal of Risks: Clara warned against founders who downplay risks or overpromise returns. Acknowledging risks and presenting mitigation strategies demonstrates maturity.
Lack of Market Knowledge: Matthew noted that startups unaware of regulatory or competitive landscapes risk losing investor confidence.
No Skin in the Game: Paulo flagged a lack of personal investment by founders as a concern, as it suggests lower commitment.
Arrogance and Rigidity: Shamik emphasised the importance of humility and adaptability, warning against founders unwilling to learn from others.
Pitching to Investors
Tailored Pitches: Clara recommended researching investors thoroughly and aligning the pitch with their interests and portfolios.
Simplicity: Paulo advised keeping pitch decks concise (10-12 slides), with a clear focus on market fit, financial projections, and exits.
Building Relationships: Matthew stressed cultivating long-term, genuine relationships rather than treating interactions as purely transactional.
Building a Life Sciences Startup: Lessons Learned
The “If I Had to Do It Again” panel provided actionable insights for aspiring founders. Speakers included Josh Pistorious (Q Ventures), Brian Snyder (Aide Health), Robert de Jonge (Mestag Therapeutics), Robert Tansley (Cambridge Innovation Capital), and Frederic Roses (Descartes Development and Innovation). If you are a founder who wants some tips on how to build your startup better - take a look below at some notes from the panel.
Challenges Faced and Lessons Learned
Customer Feedback and Regulation: Frederic highlighted the difficulty of obtaining customer feedback early due to regulatory hurdles. Raising more capital upfront would have allowed his team to compete more effectively with incumbents.
The Slow Burn of HealthTech: Brian described HealthTech as a “slow burn” that requires exceptional patience. Startups must focus on creating both patient value and a compelling economic case.
Defining Factors for Success
World-Class Science: Tansley emphasised the need for global excellence and a strong IP foundation to provide a competitive edge.
Robust Funding: Insufficient funding is a common cause of failure, making the choice of aligned investors critical.
Team and Execution: Robert de Jonge stressed the importance of assembling a resilient team capable of adapting to challenges and validating ideas early.
When to Go Full-Time
The panellists agreed that going full-time on a startup requires:
A strong support network to mitigate stress (Tansley).
Clear signals of traction and excitement about the business outweighing other commitments (Brian).
Early fundraising to build momentum and focus fully on the mission (Frederic).
The HealthTech roundtable provided remarkable insights into the future of the sector and how startups and VCs are navigating this dynamic market. From the pressing need for clearer regulatory frameworks to practical advice for founders looking to secure funding in a highly competitive space, our panels delivered invaluable knowledge to attendees.
If you found these insights valuable, be sure to follow the London Venture Capital Network on our social media channels for updates on upcoming events and more thought-provoking articles.
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