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Perfect time to invest in health technology

In recent years, investors and venture funds that have not previously invested much in health have begun to look at the opportunities for investing in the health sector, especially in health technology and digital health services.

according to Global Markets Insights The value of the health technology market should increase to $ 400 billion by 2024. There are several factors driving this growth, but health technology is the single largest factor. But even though investments in startups in the field of digital health services have been significant in recent years, we still have the benefit of seeing a major shift in the way health services are delivered.

But it will also come. For health technology and digital health services will lead to disruption in the health sector. The demand for innovative products and solutions such as portable devices, digital consultations, apps and cloud-based platforms will only continue to increase.

At the same time as demand increases, investors' interest in investing in the sector also increases.

Why is interest increasing now?

Traditionally, players such as active ownership funds have stayed away from investments in the health sector due to the complexity and unpredictability of the industry. In addition, a fragmented landscape and fluctuating markets have played a role.

However, we see a change in this, and the advent of digital technology in the industry is a major reason for this. In the growing field of health technology, exciting new investment opportunities open up for you who are willing and able to embrace and adapt to this new paradigm.

Ongoing deregulation throughout the global healthcare industry makes it even easier to adopt new technologies, including cloud storage, apps and connected, portable devices and KI.

When large companies, such as Pfizer, invest in digital health, this accelerates the digital health sector as a whole, and we are finally beginning to see the digital health market mature with significant exit valuations of over $ 1 billion, which attracts more investment in the sector.

Why increased interest in investing in healthcare technology and digital healthcare services?

The world is facing an impending wave of the elderly. In addition, average life expectancy increases steadily. This combination gives us a larger proportion of older people, at the same time as we live longer.

This means that we will need more and better treatment options to be able to handle future health challenges.

In order to meet these requirements and challenges, the health sector must streamline existing solutions while at the same time adopting completely new solutions and technologies.

For digital healthcare is truly revolutionary. They will enable operators in the sector to change and renew the service offering, which can improve the patient's health and well-being.

And right now, a lot is moving in the investment fields of health technology and digital health services.

Not least because we are on our way through a pandemic.

Why the pandemic is so important

The COVID-19 pandemic has created a perfect backdrop for developing and advancing technology and digital solutions in the healthcare sector.

according to Mercom Capital Group Global venture capital funding for digital healthcare companies reached $ 10,3 billion during the first nine months of 2020.

With a market value of $ 141,8 billion by 2020, the digital healthcare sector is expected to grow by around 17,4% between 2021 and 2027.

The pandemic has really opened the eyes to the opportunities and needs in the health sector. For no one can deny that our health and our access to health services affect all aspects of life around the world, including working life, schooling and leisure.

First encounter with digital health

During the pandemic, many have had their first digital consultation with the doctor, since it has been difficult to meet face to face.

Before the pandemic, digital consultations accounted for only 1-2% of all doctor visits. Now they account for approx. 30% of all visits.

According to surveys, 66 per cent of consumers want to use digital consultations, while up to 40% of primary health services can be carried out digitally.

Due to COIVD-19, 2020 will be remembered as a turning point for digital healthcare.

The result of the pandemic has been an increased use of innovative technologies in the health sector - in addition to improved digital consultations, the solutions include tools for remote diagnosis and apps related to mental health.

Now that we have seen that it is less painful than expected for both healthcare professionals and patients to use such solutions, we predict that we will see more and more technologies being introduced. Hopefully this will lead to more and more solutions that can be used in preventive treatment. In this way, we may also be able to reduce the costs of health services in the long term.

Digital healthcare is becoming more important

Due to the pandemic, many millions of people around the world have had to try a new, digital approach to healthcare. And they liked it. Disruption technologies benefit from this because they do not have to spend money on marketing to get patients to market or risk being left behind.

Portable and digital technology for healthcare services will play an increasingly important role in monitoring patients' values, offering support and transforming the healthcare industry - everything from the comfort of the patient's home.

The emergence of digital aids has provided a better opportunity to facilitate facilitation of remote diagnostics and to expand the scope of use of applications for external patient monitoring.

Looking ahead, industry experts predict that the next hurdle will be figuring out how to offer complete care solutions, which will include seamless assessment and referrals between remote and personal care to improve overall patient care.

This is something eClinic focuses on, and when using, for example, the KI-assisted symptom checker, patients will receive advice on what they should do next.

The fact that digital healthcare needs to go beyond just isolated video consultations to integrate digital healthcare into a system that matches treatment to specific needs and optimizes access to care represents the greatest opportunity in the market.

Health technology is evolving

In addition to digital health services, health technology has great potential for developing solutions to long-term problems in the health care system and getting the solutions out to patients quickly. This is particularly appealing to investors. Therefore, this is a perfect time to invest. For many, it is important to join companies early to support growth.

At the moment, it is particularly interesting to look at health technology that can lead to improvements in elderly care and treatment of chronic diseases.

Compared to physical consultations, digital health gives us many benefits. Today, there are many different portable devices that can measure and monitor the patient's symptoms in real time, such as heart rate, blood sugar and ECG.

This data can be stored and analyzed and used to improve patient safety at home. With such technology, one can offer solution-oriented treatments based on the available information.

Why should you invest now?

It is obvious that digital health services can increase efficiency and reduce costs in the health sector, while at the same time providing opportunities for more access to care and a reduced need for physical attendance and hospitalization.

This drives investments in health technology, digital health services and the health sector in general.

Through closer follow-up of patients with different health technologies, preventive treatment can help reduce the number of readmissions of patients with chronic diseases.

Global venture capital funding for digital healthcare investments and healthcare funding has increased to $ 15 billion in the first half of 2021, mainly driven by investments in digital healthcare.

This is a fantastic time to consider investing in digital healthcare as the integration of healthcare technology in different parts of the sector rises.

The pandemic has ripple effects

The pandemic will undoubtedly create long-term consequences and ripple effects in the health sector. The rapid development in digital health services and increased use is unlike anything we have seen before.

The inevitable change entails a need for improved information exchange and increased access to and integration of health technology.

The development and implementation of health technology and digital health services can also help the healthcare sector create a better patient experience.

Some thoughts on the way forward

Industry trends are able to both drive long-term innovation and create short-term solutions that go into oblivion. If this is combined with factors such as unjustifiably high valuations, a flood of new players and a poor exit market, a growing market and increased interest may indicate excessive enthusiasm.

If you are ready to expand your investment portfolio and think you can contribute to a company in the fields of health technology or digital health services, this is a perfect time to invest.

What investors considering investing in the healthcare sector should look for

Increasing venture capital financing in the digital healthcare sector is likely to escalate market growth as more investors begin to see and understand the opportunities in the sector.

If you are going to invest in companies that operate in the digital health sector, there are several things to look for.

Among other things, the company should have a strong data strategy. These are often companies that are leaders in their niche, and which utilize data, analysis, workflows and new platforms to change the way an industry works.

A good stable tip is to focus on companies that collect data and have a plan to turn data into action, not just to collect data to collect data.

There should also be a solid and viable business model.

The company should also have a certain social impact and a desire to "make health better" by supporting digital solutions that can make a difference for patients.

If you are also impressed with the entrepreneurs and their traction in their respective markets, the company's mission and management have a good commercial approach and have entered into long-term collaborations that enable rapid growth, this is a good basis for considering whether to make an investment.

It can also be interesting to hear a little about how some of Norway's most professional investment communities think about investing in health. Hear recordings of the workshop held by the Norwegian Smart Care Cluster. There, the various players talk about how they think about investing in companies that operate with health technology.

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