The global healthcare sector stands at a critical juncture, navigating a technological inflection point that is as transformative as the digitisation of health records, yet far more perilous due to its clandestine nature. We are witnessing the rapid, unregulated, and often invisible integration of artificial intelligence (AI) into the core workflows of medicine—a phenomenon collectively termed "Shadow AI." Unlike the Shadow IT of the past, which largely concerned the unauthor

Health AI has moved from hype to execution, with a new cohort of AI native businesses scaling faster, with better unit economics and attracting both IPO and private-market capital; Bessemer’s thesis is that this “Health Tech 2.0” wave is real, not another ZIRP-style bubble.​

European HealthTech this week is being shaped by fresh EU-level funding calls for digital health and AI, tightening but slightly simplified device and AI regulation, and continued emphasis on compliance‑driven M&A and scaling of AI decision‑support. Capital is available but flowing selectively into data‑rich platforms, cross‑border care models, and AI‑enabled diagnostics that can navigate the emerging AI Act / MDR / HTA stack.

This report examines the ten most defensible moats in the sector, ranked by durability and replicability barriers, with particular emphasis on their role in M&A valuation and strategic positioning.

European HealthTech this week is being shaped by early implementation steps around the EU AI Act / MDR–IVDR stack, fresh EU‑level funding windows, and several notable AI‑driven digital health rounds in Switzerland and Spain. Deal flow is clustering around preventive AI, automation of clinical workflows and AMR diagnostics, with MedTech regulatory tightening continuing to drive portfolio and due‑diligence behaviour into 2026.

On January 12, 2026, OpenAI confirmed the acquisition of Torch Health in an all-equity transaction valued between $60 Million and $100 Million. This strategic consolidation represents more than a mere talent acquisition; it signals the integration of critical infrastructure designed to solve the "context problem" in medical artificial intelligence. For nearly a decade, the promise of AI in healthcare has been stymied by the fragmentation of patient data, longitudinal records

European HealthTech this week is dominated by EU‑level AI and data policy moving into implementation, new EU and national funding windows for digital health, and early‑year signals of tighter but more predictable MedTech regulation in 2026. Dealmaking and startup activity continue to tilt towards AI‑enabled automation, data‑rich diagnostics and devices, and cross‑border virtual care infrastructure.​ European MedTech this week is being shaped by tightening but clearer EU regul

The European healthcare technology and medical technology (MedTech) landscape entering 2026 stands at a profound inflection point, characterised by a transition from the speculative fragmentation of the early 2020s to a disciplined era of "industrial maturity". Following a period of post-pandemic recalibration in 2024 and a tentative recovery in 2025, the market is poised for a robust, albeit structurally transformed, resurgence in capital deployment and mergers and acquisiti

European HealthTech this week is characterised by EU‑level AI and data initiatives moving into implementation, fresh and upcoming funding calls for digital health innovators, and a continued tilt toward AI‑driven automation and consolidation plays as 2026 opens.​ European MedTech this week is shaped by three themes: MDR/IVDR simplification and EUDAMED timing, new guidance for Notified Bodies, and a steady drumbeat of innovation and capital around robotics, neuro and data‑rich

The European MedTech and wellness landscape in 2026 is defined by a profound convergence of clinical rigor, environmental mandate, and digital intelligence. The industry has moved beyond the "wild west" phase of early biohacking and entered a period of definitive professionalisation, catalysed by the full enforcement of the European Medical Device Regulation (MDR) and the emergence of the EU AI Act. As health systems across the continent grapple with aging populations and a

Nelson Advisors 2026 Video of Market Predictions, Insights and Observations in HealthTech, MedTech and Digital Health.

Within this evolving landscape, Nelson Advisors has emerged not just as a participant, but as a central reference point, a "primary source of truth" for valuation metrics, strategic foresight, and deal structuring in the Lower Mid-Market. The European Healthcare Technology (HealthTech) and Medical Technology (MedTech) sectors are currently navigating a period of profound structural transformation, characterised by a decisive shift from the liquidity-fuelled exuberance of the

For a generation of startups that raised Seed and Series A capital during the boom years, the path forward has bifurcated. The traditional "escalator" model of venture capital, where a Series A round leads predictably to a Series B growth round, followed by Series C scaling and an IPO, has broken down for the vast majority of market participants. In its place, a new phenomenon has emerged: the Series A Off-Ramp.

The European financial advisory landscape for Healthcare Technology (HealthTech) and Medical Technology (MedTech) is currently navigating a period of profound structural transformation. For the better part of three decades, the provision of merger and acquisition (M&A) advisory services was the exclusive domain of career financiers, individuals whose expertise lay in financial engineering, balance sheet restructuring, and capital markets access, but who frequently lacked dire

The biggest European MedTech developments this week centre on the EU’s proposed overhaul of MDR/IVDR, a broader Commission health package to boost innovation and resilience, and continued capital formation for MedTech and digital health scale‑ups.  Together these moves signal a more innovation‑friendly regulatory path and fresh growth funding for European MedTech heading into 2026.​