The Rise of HealthTech and Impact Investing

You’re nothing without your health. This is a notion that has run throughout humanity and is why we have a long history of healers, from shamans and traditional healers through medieval apothecaries to modern specialized care, all put in place to help ensure humans manage at their peak health.

As with so many things, modern technology is set to revolutionize the industry. The growing field of HealthTech is changing how we develop, deliver and receive medical assistance and is likely to bring forth some of the greatest health advancements mankind has ever seen.

Sadly, though, these advancements won’t be made without funding to back them up. The good news is interest in the field is steadily rising which means startups have funding options.

Let’s look at how HealthTech is being funded.

Not surprisingly, venture capitalism currently stands as a major source of funding. In the first quarter of 2018 VC funding stood at $2.5 billion and these record high levels will likely continue in the coming months and years.

As the baby boomers age and our life expectancy increases healthcare spending will in turn increase, which makes both HealthTech and MedTech solid investment options.

Companies like HealthTech Capital and HealthX Ventures have been set up to fund and mentor startups and companies looking to reinvigorate or revolutionize the medical system. Rock Health, which calls itself “the first venture fund dedicated to digital health,” serves as an early-stage investor (evolving from the role of accelerator). These funding sources will serve as vital lifelines for many HealthTech startups and are why we will see brilliant new health innovations in the coming years.

That being said, VC is not the only source of funding for tomorrow’s HealthTech superstars. Impactinvesting continues its rise in prominence and is proving to be a powerful tool in the creation of the HealthTech industry.

This makes solid sense when you consider that one of the sustainable development goals is “Good health and well being.” Our health and the health of people across the globe is an important part of the well being of our planet and the economy and this makes healthcare tools and techniques incredibly valuable.

Gray Matters Capital is one of the organizations recognizing the importance and potential in HealthTech. Its coLABS program is set to help startups across the globe set up and maintain needed HealthTech services.

The initiative is helping innovations like doctHERS, a digital healthcare platform helping female doctors in Pakistan connect with their clients, and Redbird, a Ghana-based health monitoring system, connect with sections of the population that have been underserved by the health market.

Impact investing is incredibly important because of its relationship with startups.

So many vital and life-changing breakthroughs come through startups (not to mention things we didn’t know we needed, like Groupon or Airbnb) and we need these innovations supported so they can grow and become the powerhouses we need them to be.

For many startups impact investing is their lifeline or their foundation, the source of funding they need to keep momentum and grow as a force.

Think about how important startups have been and will be in the health industry and in HealthTech. Startups brought us breakthroughs in surgery and tissue sampling (the iKnife) and vaccines (Medicago) and will continue to bring in new innovations.

This will prove to be especially true as HealthTech becomes more and more of a force. As we speak startups are getting ready to wow us.

Take Genetesis for example. This startup saw a world where doctors could quickly and noninvasively locate blocked arteries and set out to create the tools to allow this. Now, thanks to CardioFlux and the CardioFlux Mapping System, this potential is now a reality.

Athelas is another startup helping us take a major step forward. The company uses AI and big data to better analyze blood, reducing costs and helping to improve overall treatment.

Technology is changing the field of health by leaps and bounds and startups are leading the way.

The coming years will prove to be very important in the HealthTech field as it strengthens as a force and shows what it can do.

Funding will (naturally) be important, as without financial backing these new health innovations will sputter out or languish.

For these innovative startups and companies there is funding, they just need to know where to look. And, in fact, by aiding in funding these new capital sources will rise in prominence and importance.

Yes, impact investing will make a real impact, improving both our business world and our health.

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