Investment Trends in MedTech Startups

The Indian government is pretty excited about the Medical and Healthcare Technology (MedTech) market, calling it a real winner. 

A KPMG report of October 2023 says that this industry was valued at $11 billion in 2022, and by 2030, it is expected to reach a staggering $50 billion! 

That's commendable. What we need to explore is the secret sauce to the buzz about investments in MedTech. 

Well, it's a mix of things. From big healthcare investors, high percentage of the aging population, the rise of long-term health issues, a surge in people who are overtly clued in about staying healthy to a boost in medical tourism, all remain factors. 

Plus, the government's got our backs with some supportive policies to help things along. The NITI Aayog platform adds more investment opportunities to Indian healthcare than ever before.

The motto behind investments in MedTech is not just about making money; it's also about building better healthcare for everyone. 

And with more cash and a bigger focus on staying healthy, folks are clamoring for better medical gadgets and tech. It's like a big opportunity playground for both local and international players to step up their game and bring some cool new stuff to the table. Stay tuned as we discuss investments in MedTech in India further. 

 Investing in Medical Technology is Trending. Why?

Investments and recruitment in MedTech are booming in India and globally. Here are a few reasons why MedTech is a hot trend in our country today:

• The Rising Need for Medical Technology

The aging population, technological advancements, and the need for cost-effective healthcare solutions are driving a boom in demand for medical technology.

Advanced diagnostic tools like MRI and CT scans enhance disease detection, while remote patient monitoring and telemedicine offer accessible healthcare options. 

Robotics and automation further revolutionize patient care, underscoring the growing importance of medical technology in improving healthcare outcomes.

• The Pandemic and MedTech

The COVID-19 pandemic catapulted global MedTech supply chains. 

It accelerated telemedicine adoption, the usage of wearable healthcare devices, and the need for remote monitoring of patients. The crisis accelerated healthcare's digital transformation, emphasizing the importance of diagnostic testing. 

To expedite COVID-19 product approvals, regulatory agencies implemented flexible frameworks, encouraging innovation in the face of challenges.

• MedTech offers Telemedicine: Bridging Gaps

Telemedicine, through remote consultations and virtual care, is reshaping healthcare accessibility. 

It surmounts geographical obstacles, granting patients in remote regions access to specialists. Moreover, it accommodates busy schedules by offering flexible consultation times. Particularly beneficial for vulnerable populations like the elderly and chronically ill, telemedicine brings vital care directly to their homes, significantly improving their quality of life. 

Furthermore, in underserved areas with limited healthcare infrastructure, telemedicine connects local providers with global experts, ushering in a new era of healthcare delivery.

• Advancements in Artificial Intelligence (AI) and Machine Learning (ML) Revolutionizing Healthcare

Medtech startups utilize AI and ML for accurate diagnosis and treatment planning, like Path AI's cancer diagnosis assistance. 

Precision medicine, exemplified by Owkin's personalized cancer treatment, tailors therapies based on individual data. 

Remote patient monitoring, such as Biofourmis' platform, enhances proactive care. 

Surgical precision, like Intuitive Surgical's da Vinci system, improves outcomes. Atomwise accelerates drug discovery with AI.

• Attracting Investors: Potential ROI in MedTech

Investor Appeal: Understanding the potential return on investment (ROI) in MedTech is critical when seeking investors for your startup in this industry.

Market Dynamics: The MedTech industry is an appealing investment opportunity because of its consistent growth and high demand for innovative medical solutions.

Cost-Effective Solutions: MedTech startups are focused on providing cost-effective alternatives, improving patient outcomes, and driving efficiency in healthcare processes, which can result in significant returns for investors.

Exit Strategies: Investors look for profitable exit strategies, such as acquisitions by larger healthcare corporations or initial public offerings (IPOs), to ensure potential returns on their investment.

Success Stories: Numerous MedTech success stories, such as Intuitive Surgical and Medtronic, demonstrate the industry's high ROI potential, enticing investors.

Disclaimer: The inclusion of company names, such as Intuitive Surgical and Medtronic, is solely for illustrative purposes and does not imply endorsement. Readers are advised to conduct independent research and seek financial advice before making any investment decisions.

Investments In MedTech In India: The Crunch

Tathagata Rai Dastidar, founder and CEO of SigTuple, talks about his recent experience with Indian MedTech companies. He claims that all is not well.

The ADLM conference in North America is a leading event for laboratory medicine, featuring global med tech giants and smaller companies. However, Indian company participation is notably minimal, with fewer than five Indian companies exhibiting in each edition. 

This discrepancy raises questions about India's role in the med tech industry despite its reputation as a tech powerhouse, especially considering the diagnostic equipment and reagents industry's substantial annual revenue exceeding $100 billion.

Our team researched some probable roadblocks that India could be facing:

• Drying MedTech Venture Partners

Venture capital support for MedTech ventures in India is dwindling, impeding sector innovation and growth due to a lack of investor interest and funding opportunities, stifling potential advances in healthcare technology.

• Long Development Cycles: Low Revenues

MedTech innovations have long development cycles, which delay revenue generation and reduce investor returns. This inherent complex characteristic of medical and healthcare processes, regulatory and compliance challenges, combined with low initial revenues, discourages venture capital investment in the industry, limiting its growth potential.

• Consumer Tech is More Popular Than Deep Tech, like in Medical Devices

Investors prefer consumer technology, such as e-commerce portals, to deep technology, such as medical devices, AI, and robotics, due to obvious scalability and faster returns on investment, resulting in poor venture capital MedTech and limited support.

Resetting the  Investing in Medical Technology Trends in India

We have to quote the latest  KPMG report of October 2023 again that offers 6 themes that would help India accomplish its 'Innovate in India' vision.

• Supportive regulations and policies:

Establish laws and policies that encourage investment and innovation in the MedTech sector, creating an atmosphere that helps startups prosper and draw in venture capital funding. 

• Incentivizing research (RLIs):

Encourage innovation in MedTech by providing grants and tax incentives for research and development (R&D), which will boost funding for academic institutions and research labs.

• Strong digital infrastructure:

Create a strong digital infrastructure, including high-speed internet and data storage facilities, to facilitate the development and deployment of digital health solutions in MedTech.

• Creating public-private partnerships (PPPs) mainstream:

Encourage collaboration among government agencies, private-sector companies, and healthcare providers to invest in and support the development of innovative MedTech solutions for public health.

• Friendly medical technological ecosystem:

Create a supportive ecosystem for medical technology startups by offering mentorship, funding opportunities, and networking events to encourage growth and innovation in the industry.

• Workforce Upskilling and Cross-Skilling:

Provide training programs and workshops to upskill and cross-train healthcare professionals in digital technologies and MedTech advancements, ensuring that they can effectively use and adopt new medical innovations.

Success Stories:

In 2021, the Innovative Health Initiative (IHI) started, a partnership between the European Commission and private groups like MedTech Europe. It helps innovation in medical tech, digital health, and biotech. 

Another good example is Bharat Biotech and ICMR teaming up for Covaxin's development in the pharmaceutical sector.

Disclaimer: The inclusion of company names is solely for illustrative purposes and does not imply endorsement. Readers are advised to conduct independent research and seek financial advice before making any investment decisions.

Anastomos—-A Doorway to The Medical Devices Industry

Anastomos is a full-spectrum, end-to-end online platform designed for healthcare professionals. We offer career counseling to physicians, recent graduates, and those aspiring to become physicians/medical entrepreneurs.  Anastomos can help you actively with career counseling, clinical and non-clinical job boards, and academics.  

We are not on any other job board. In an effort to help you better build your career and understand the returns on your industry investments, we also attempt to guide you through potential courses and certifications and assist you in contacting medical device industry professionals. 

Many prominent figures in the medical field who have skillfully mastered practice, entrepreneurship, and technological roles are the brains behind Anastomos.  Their professional missteps, prestigious roles, and triumphs motivate every Anastomos member to achieve success. 

Feel free to reach out to us today.