State of the Landscape
In this first update paper of 2024, we outline the investment landscape and activity in MedTech, Diagnostics and Digital Health over Q1. Our focus is on capital raisings and M&A activity across European companies. We also highlight two interesting deals made in this year’s first three months.
Q1: nearly 50% more deals since last quarter
In the first quarter of 2024, no less than 62 deals were made across the European MedTech, Diagnostic and Digital health sectors – totaling $1,159M. Compared to Q4 2023 (42 deals, $2,380M), the number of deals increased while the capital involved was significantly less, due to large M&A deals inflating the total sum. In Q1 of this year, many more types of financing were used to fund life science ventures. Of the investment activities, 52 were capital raisings through venture financing deals, private equity and equity offerings. 16 deals consisted of M&A, including both full and minority acquisitions (Figure 1).
Of the 46 venture financing deals, 14 were made in January ($151M) and 19 in both February ($419M) and March ($186M). The total number of venture financing deals has seen a significant increase compared to last quarter, where only 28 were made in Q4 2023.
Even though the number of deals was the same in the last two months of Q1, February saw more than double the total amount of capital invested. This can largely be attributed to two growth/late-stage rounds of $110M (Medical Micro instruments, surgical robotics) and $136M (Impulse Dynamic, cardiovascular devices).
Digital Health innovations have secured most deals in Q1
Zooming in on the types of technologies that received funding, it is clear that digital health innovations have secured most deals in Q1 (21) – followed by cardiovascular devices (8) and neurological devices (5). Yet, an important note is that digital health entails a vast array of technologies that can be applied to different indications. As an example, this quarter’s digital health technologies range from diabetes-tracking apps, to clinical support systems for cancer, and treatment planning software of knee fractures.
Highlights
We will cover one selected venture financing deal and one acquisition to shed more light on interesting financing deals in the sector.
Altavo raises €5 Million in Series A Financing – 20/02/2024
Digital health company Altavo helps voiceless people to regain their own, natural-sounding voice. Based in Dresden and Jena, Germany, the AI-based voice rehabilitation company raised €5M in Series A funding. The round was led by Occident with participation from Novalis Biotech, Beteiligungsmanagement Thüringen, TGFS Technologiegründerfonds Sachsen, High-Tech Gründerfonds (HTGF), Saxonia Systems Holding, and TUDAG TU Dresden AG.
Altavo’s non-invasive sensor technology can detect and characterize silent articulation movement. State-of-the-art deep neural networks have the power to convert these signals into audible speech in real time. The company intends to use the funds to accelerate growth, product development, the pivotal clinical trial, and internationalization.
LEM Surgical AG raises CHF 22 Million in Series B funding – 4/1/2024
LEM Surgical AG, an innovative surgical robotics company headquartered in Bern, Switzerland, recently announced the successful completion of its Series B funding, securing CHF 22 million (USD25.8 million).
LEM Surgical develops state-of-the-art technology for robotic-assisted spine surgery. Precision, adaptability, ease of use, and efficiency are all essential in these procedures. Their advancements are focused on achieving better outcomes, improved surgical staff experience, efficient cost of care, and an improved patient experience.
The round, which was strongly oversubscribed, reflects the strong investors’ confidence in LEM Surgical’s differentiated approach. The infusion of capital is strategically earmarked to propel the advancement of LEM Surgical’s product development initiatives and readiness for FDA submission in the second half of 2024. With this latest capital injection, LEM Surgical is well-positioned to achieve its objectives and to further solidify its potential in the field of surgical robotics. Yossi Bar, founder and CEO of LEM Surgical, expressed the company’s vision: “Our goal is to revolutionize the experience for surgeons, clinical teams, and hospitals engaged in robotic surgery. We deeply appreciate the trust and support of our new investors. It underscores the unwavering confidence of our investors in the future success of our groundbreaking technology.”
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