The Startup Coalition UK’s Inaugural HealthTech Index 2025: Key Points, Exits and Failures

Lloyd Price
1 day ago
4 min read

UK’s HealthTech Index 2025: Key Points from the Startup Coalition’s Inaugural HealthTech Report

The Startup Coalition UK’s inaugural HealthTech Index, using data from Beauhurst (2025), highlights the following key points about the UK’s health tech sector:

Sector Value and Funding: UK health tech startups were valued at £32 billion by the end of 2024, raising a combined £27.4 billion in capital, with an average of £9.6 million per company. Additionally, £865 million in grant funding was secured.
Employment and Growth: The sector employs nearly 30,000 people, with 168 firms achieving exits compared to only 61 failures, indicating a robust and dynamic ecosystem.
Subsector Performance:

Biopharmaceuticals: The most valuable and populous sub-sector, with 276 startups raising £11.9 billion, accounting for 36% of the sector’s total value. Notable deals include Verdiva Bio’s £333.5 million Series A in 2025 and Ottimo Pharma’s £104 million Series A.

Biotechnology: 138 startups raised £3.3 billion.

Digital Health: 95 firms secured £2.8 billion and employ over 5,000 people, representing 17% of the sector’s workforce.

AI and Data Analytics: Surprisingly, this segment raised only £1 billion with a valuation of £1.4 billion, lagging behind other tech sectors where AI typically dominates.
Investment Trends: The sector saw a record £795 million raised in 2024, driven by the post-COVID acceleration of digital healthcare services like virtual GP appointments and remote monitoring.
Policy Recommendations: The report calls for NHS procurement reforms to better integrate innovative solutions, scaling up public sector accelerators, and supporting spinouts to sustain growth.
HealthTech Definition and Scope: HealthTech encompasses technologies like software, apps, and wearables focused on preventative care and personal health management, distinct from medtech, which targets in-hospital diagnostics and devices requiring stricter regulatory approval.

These insights reflect a thriving yet policy-constrained sector, with biopharma leading in funding and digital health excelling in job creation.

https://api.startupcoalition.io/u/2025/05/HealthTech-Index-2025_FINAL.pdf

Key statistics from the startup coalition UK’s inaugural HealthTech index using data from Beauhurst report 2025

The Startup Coalition UK’s inaugural HealthTech Index, based on Beauhurst’s 2025 data, provides the following key statistics about the UK’s health tech sector:

Total Valuation: £32 billion by the end of 2024.
Capital Raised: £27.4 billion in total equity funding, with an average of £9.6 million per company.
Grant Funding: £865 million secured across the sector.
Employment: Nearly 30,000 people employed.
Exits vs. Failures: 168 firms achieved exits, compared to 61 failures.
Investment in 2024: A record £795 million raised.
Subsector Breakdown:

Biopharmaceuticals: 276 startups raised £11.9 billion, accounting for 36% of the sector’s total value.

Biotechnology: 138 startups raised £3.3 billion.

Digital Health: 95 firms raised £2.8 billion, employing over 5,000 people (17% of the sector’s workforce).

AI and Data Analytics: Raised £1 billion, with a valuation of £1.4 billion.

These figures highlight a robust sector with strong growth in biopharma and digital health, though AI lags behind expectations.

Exits and Failures

The Startup Coalition UK’s inaugural HealthTech Index 2025, based on Beauhurst data, provides the following key statistics regarding failures and exits in the UK’s health tech sector:

Exits: 168 health tech firms achieved exits by the end of 2024. This includes events such as acquisitions, initial public offerings (IPOs), or other forms of successful market exits, indicating a mature and dynamic ecosystem with significant investor and market interest.

Failures: 61 firms in the sector failed, reflecting a relatively low failure rate compared to the number of exits. This suggests resilience in the health tech sector, with successful companies outnumbering those that did not survive.

Context and Significance:

The ratio of 168 exits to 61 failures underscores the sector’s robustness, with nearly three times as many companies achieving successful outcomes as those that ceased operations.

The high number of exits aligns with the sector’s strong funding environment, having raised £27.4 billion in equity and £865 million in grants, with a total valuation of £32 billion.

The low failure rate may reflect the sector’s ability to attract sustained investment, particularly in high-value sub-sectors like biopharmaceuticals (£11.9 billion raised) and digital health (£2.8 billion raised), which support company longevity and scalability.

The report calls for 3 main changes in procurement, innovation and spinouts:

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.

https://api.startupcoalition.io/u/2025/05/HealthTech-Index-2025_FINAL.pdf

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