Blog: India’s health venture industry and launch of the Global Health Arena
- Posted by @dmin-IndiaTrading
- On September 19, 2022
- 0 Comments
- healthcare, India, investment, startup, Sustainability, venture
The drivers of health and healthcare include factors such as income, location of residence, and the quality of social support networks. Differences in these areas creates challenges of access to health care and health care coverage.
Lately, healthcare globally has witnessed a renewed focus on improvement of quality, especially with the increased focus of digital technology during the pandemic. This has resulted in a new era of digital innovation in the entire health ecosystem. Technology is giving patients the opportunity to take care of their own health, real-time analytics is improving clinical decision making, and virtual monitoring tools are enabling health care from anywhere, anytime. As a result of this, PE/VC interest in tech-enabled startups in healthcare-sector is growing.
Healthcare sector for PE/VC in India
The healthcare sector in India has become popular among PE/VC funds in recent years, receiving almost US$9.5 billion in investments since 2017, with more than 54% of the investments in the past two years. Further it has had a CAGR of around 22% since 2016 due to increasing coverage, breadth of services and the growing demand for good quality healthcare. By being a highly underpenetrated market, India provides good growth opportunities for companies and investors.
This growth has largely been driven by investments into the provider care segment and health-tech platforms. These two segments account for more than 70% of all PE/VC investments in the healthcare sector, both in terms of value and volume.
Since hospitals are largely capital-intensive businesses, they need a lot of upfront investment to grow, which makes the sector very suitable for PE/VC investors. Most PE/VC investments are focused on creating capacity and generating operating leverage through value creation, which in turn leads to good return multiples on exit.
At the moment there are over 3,500 health-tech startups in India, In a number of sub-sectors like; platforms helping to monitor health conditions, apps using AI to detect illnesses and diseases, platforms connecting patients with doctors and telemedicine. Several of these startups are great complimented services combined with the standard hospitals
The Accelerator/VC/PE healthcare market of India is widespread all over the country, but there are 3-4 cities which is the main areas of development. These are Bangalore, Mumbai, Delhi and Hyderabad. Some examples of leading accelerators in the different cities are:
- Bangalore: Microsoft, Kstart, Cisco Launchpad, TLabs, Kyron, E-health TBI, Global Incubation Services, Target Accelerator, Axilor Ventures, Brigade REAP
- Mumbai: Venture Nursery, Zone Startups, Amplifi Accelerator
- Delhi: GSF Accelerator, AIM Smart City Accelerator, The Hatch, 5ideas, Aarambh Ventures, Business World – BW Accelerate
- Hyderabad: Catalyzer Startup Accelerator,50K Accelerator
Global Health Arena
As an addition to the global healthcare market including India, The Norwegian venture platform CrowdWorks (www.crowdworks.it) is now launching their Global Health Arena.
It is planning launch by early Q4, and the platform gives:
- Live updates and access to health startups, accelerators, investors, corporates and VCs worldwide
- Investors increased visibility to the health ecosystem and investment opportunities
- Access to startup performance metrics, to easier deploy capital, discover new ideas and opportunities and build relations.
Additional examples of opportunities on the platform can be:
- Showcase your companies to investors
- Pro IR execution and Pitch Card
- Scout for operational partnerships
- Global access to minds and capital
- Market your accelerator/VC/Corporate
- Access to qualified deal flow
- Access to live data
- Find co-investors
- Scout for acquisition targets
- Other
- Marketing of your corporate sponsorships
- Identify market trends for health growth company
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