SINGAPORE – January 8, 2020 – A recent study by Galen Growth, the leading HealthTech market intelligence, analytics and advisory firm in Asia, shows that in 2019, the total funding deployed in HealthTech continued its momentum and closed at US$5 billion across 340 deals. This marks another strong year for HealthTech in the region, echoing the true opportunity that the sector represents for all industry verticals in the years to come.
In its 2019 Year End Asia Pacific HealthTech Investment Landscape report – a bi-annual go-to reference for key trends and insights for investors, enterprises and startups – Galen Growth found that the Asia Pacific region managed to continue its strong performance by recording another US$1 billion of investments in HealthTech companies in Q4 2019. By reaching the US$5 billion close, the sector beat projections made in October 2019, showing its ability to weather the region’s geopolitical and domestic headwinds.
Another key trend in Asia Pacific is the maturing funding pipeline towards larger deals. Although there was shrinking Early stage and Series A deal activity, Series B deal value share continued to grow, grabbing 33% of total funding in 2019.
One of the breakout markets in 2019 for HealthTech was Southeast Asia. Investment in the region broke previous records and doubled in 2019 to US$266 million. This was a growth of 2.25X and reflects growing maturity in the ecosystem. Regionally, Singapore and Indonesia comprised approximately 93 percent of the total funding value invested in 2019. Although Singapore maintained its deal volume share leadership position with 54 percent of the share, this figure shrunk since 2018 as neighbouring countries – such as Indonesia, Malaysia, Vietnam and Myanmar – expanded their ecosystem and attractiveness.
In Southeast Asia, while the total early stage deal volume share is shrinking, growth stage deals continue to gain momentum, now representing 37.5 percent of all shares in 2019 and up 85 percent as compared to 2018. The average funding value increased by 2.5X to US$5.6 million as compared to 2018.
Meanwhile, HealthTech investment activity In China dropped significantly by 37 percent to US$3.4 billion in FY 2019. This was projected to have been caused by weakening investor appetite borne by political headwinds and a domestic economic slowdown. Despite this, the country remains as the top funder with the largest number of deals across the HealthTech ecosystem and mainland Chinese investors made up the bulk of the top ten HealthTech investments across the entire Asia Pacific.
2019’s other leading performer was India, which broke all its funding records for HealthTech by closing at US$723 million. The country also closed its largest single deal ever after PharmEasy raised US$220 million In November 2019. Although there were fewer deals – with only 65% executed (down 39% vs 2018), total funding grew to an all-time high – closing 33% above 2018 values. Out of all categories available in India, Online Marketplaces captured most of the funding in 2019.
Commenting on the report, Julien de Salaberry, CEO and Founder of Galen Growth, said, “Industry and investor sentiment for HealthTech in the Asia Pacific continues to be strong. A greater number of enterprise business leaders confirmed that HealthTech is a high priority, whilst investors’ likelihood of investing in HealthTech in the region has grown further.”
Galen Growth’s 2019 Year End Asia Pacific HealthTech Investment Landscape report was powered by the company’s proprietary HealthTech Alpha analytics platform. It is an on-demand data and analytics platform that delivers accurate and regularly curated information to the world’s leading corporations, investors, industry innovation leaders, startups, CxOs, and researchers. Now the leading analytics platform of its kind In Asia, Galen Growth has now begun its expansion in Europe.
At the more holistic level of the HealthTech ecosystem, Galen Growth works with leading Fortune 500 corporations’ Innovation teams to fast track their digital health strategies and has partnered with Asia’s most active corporates in the HealthTech ecosystem through the Galen Growth Open Innovation Council. Now in its third year, Asia’s only HealthTech open innovation programme is dedicated to bringing together promising startups with leading organisations to scale proven solutions.
“It’s sometimes really hard to evaluate a startup just based on its sales pitch. It is important to get the background and research around it so that we can pursue a partnership with them. Not a lot of work is being done in this space apart from Galen Growth, who has added a lot of value in helping us scout partnerships with different innovative startups”, said Jo Peddhinti, Head, Digital Marketing & Innovation at Sanofi.
About Galen Growth
Founded in late 2015 by HealthTech innovators, Galen Growth, operates at the epicentre of HealthTech innovation, aka digital health, in Asia Pac and Europe. Our mission is to solve healthcare system pain points and create significant financial and social value. To achieve this, we position ourselves as the catalyst of direct collaboration between enterprises, startups and investors to prototype, evaluate and implement HealthTech solutions. We offer our clients a portfolio of proprietary solutions designed specifically to empower their teams to build, execute and scale their digital health innovation strategies. We partner with enterprises, investors and startups to fast track and deepen their engagement within this exciting ecosystem.
For more Information, please visit: www.galengrowth.com