Funding the Future: How to Unlock HealthTech Innovation in the UK

At nuom, we’re excited to witness the transformative journey of the UK’s HealthTech sector. In 2023 alone, the sector flourished with a 13% growth, welcoming over 600 new companies in just two years. These vibrant SMEs are at the forefront of innovation, pioneering advancements in AI diagnostics, wearable health tech, and digital healthcare solutions—all designed to enhance patient care and accessibility.

As passionate as these innovators are, many face significant financial hurdles when scaling their solutions. This is where a supportive ecosystem becomes crucial. We believe that by nurturing these SMEs, we can collectively drive meaningful change in healthcare.
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Understanding the Funding Challenge in HealthTech

Navigating the “Valley of Death” is a daunting challenge for many HealthTech companies. After securing initial funding, these innovators often find themselves struggling to obtain the necessary capital for market entry, clinical trials, and meeting regulatory standards. The lengthy approval process, averaging 2-5 years, delays revenue generation and makes investors cautious. Consequently, 40% of HealthTech startups fail during this critical phase, with only 10% securing follow-up funding.

At nuom, we recognise the immense potential these startups hold in reimagining healthcare. Overcoming these funding barriers is essential to empower these visionaries and ensure their groundbreaking solutions reach those who need them most.
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How We Can Empower HealthTech SMEs

Empowering HealthTech SMEs requires a multifaceted approach, and here’s how we can make a difference together:

1. Open Funding Calls: We advocate for more adaptable funding options that support all stages of growth, from early ideas to scaling operations. Whether it’s smaller projects or ambitious ventures, fewer restrictions on fund usage can make a significant impact.
2. Regional Support: Beyond London: HealthTech innovation is blossoming outside the capital. In 2023, 45% of HealthTech startups outside London secured seed funding, highlighting the potential in regions like Manchester and Edinburgh. Local grants, partnerships, and targeted support programs can help these hubs thrive, spreading the benefits of HealthTech across the UK.
3. Tax Incentives for Investors & Boosting Investments: Introducing tax incentives specifically for HealthTech can attract more investors. For instance, increasing R&D tax relief by just 10% could unlock £150 million in new investments over three years, providing the financial backing SMEs need to continue their innovative work.
4. ‍Simplifying Grant Processes & Accessible Support: Currently, 60% of HealthTech SMEs avoid grants due to complex application processes. By streamlining and digitising these systems, we can make essential resources more accessible, enabling more companies to benefit from available support.
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Why It Matters: Improving Lives and Driving Economic Growth

HealthTech isn’t just transforming healthcare—it’s making a tangible difference in people’s lives and bolstering the economy. Imagine AI diagnostics that can reduce the time to diagnose conditions like cancer or heart disease by 50%. This isn’t just about efficiency; it’s about providing patients with timely, personalised care that can save lives.

Moreover, addressing the funding gaps in HealthTech could inject £6 billion into the UK economy by 2026. This growth would create jobs, stimulate local businesses, and strengthen communities, especially in emerging HealthTech hubs outside London. By investing in these innovators, we’re not only fostering better healthcare but also building a more resilient and prosperous economy.

At nuom, we’re dedicated to supporting HealthTech SMEs in their mission to revolutionise healthcare. By advocating for flexible funding, regional support, and simplified grant processes, we aim to create an environment where innovation can thrive. Together, we can build a healthcare system that’s more accessible, efficient, and patient-focused—ensuring a brighter, healthier future for everyone.
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Ready to shape the future of healthcare together?

Join us in building health tech that truly serves. At nuom, we believe every tool should be a bridge to better care and connection. Reach out to learn more about how we’re transforming healthcare through empathetic, patient-centred design. Let’s work hand in hand to make healthcare as much about human connection as it is about cutting-edge technology.

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