The UK health tech sector is experiencing rapid growth, attracting record levels of funding and gaining recognition as a key part of the country’s innovation economy. A new report by the Startup Coalition highlights the sector’s strong performance, rising investment, and the policy changes needed to support its continued success.
UK Health Tech Sector Hits £32 Billion Valuation
The UK health tech industry has reached a significant milestone, with startups in the space now valued at a combined £32 billion, according to fresh research from the Startup Coalition and Beauhurst. The findings, part of the newly launched HealthTech Index, spotlight the UK health tech ecosystem as one of the country’s most dynamic and fast-growing sectors.
Massive Funding Fuels Growth
UK health tech startups have raised a total of £27.4 billion, with each company getting an average of £9.6 million. In 2024, they also received £865 million in grants, showing strong support from the public sector.
The biopharmaceutical area leads the sector, with 276 companies raising £11.9 billion by the end of 2024. Growth has continued into 2025, highlighted by a £333.5 million investment in Verdiva Bio, a new company competing with Ozempic.
A Growing Employer and Exporter of Innovation
UK health tech startups now employ nearly 30,000 people across the nation, highlighting the sector’s contribution to job creation and economic development. The Startup Coalition describes health tech as an essential industry for the UK’s future, both in terms of domestic impact and global competitiveness.
Positive Outcomes and Promising Diversity
Out of the 1,000 startups in the Index, 168 have successfully exited, while only 61 have closed, showing strong results and stability in the sector.
The report also points to better gender diversity, with over 20% of UK health tech startups having at least one female founder, higher than the 16% average across all UK-funded startups.
Policy Reform Urged to Unlock Full Potential
Dom Hallas, Executive Director of the Startup Coalition, is calling for important policy changes to help UK health tech startups grow and succeed. He highlighted that current NHS buying processes make it hard for startups to offer their products and services, which slows down innovation in healthcare. Hallas also stressed the need for more support for university spinouts—new companies based on academic research—and for improving public sector startup programmes, so they better meet the needs of health tech businesses. These changes, he says, are key to unlocking the full potential of the sector.
“Health tech is already one of the UK’s great strengths,” Hallas said. “But we must remove the policy barriers holding it back. The Index is just the beginning of a deeper focus on unlocking growth and impact across the UK health tech landscape.”
