

Wara Samar
21st January 2025
2024 HSBC Healthcare Report: Key Investment Trends
The recently published HSBC Venture Healthcare Report, spearheaded by Jonathan Norris, Managing Director of HSBC Innovation Banking, offers a comprehensive look at the shifting landscape of healthcare investment in 2024. Following a period of record-breaking investments between 2020 and mid-2022, the venture capital market experienced a recalibration in 2023, with portfolio triage taking center stage. By 2024, investor sentiment began to stabilize, although the focus had notably shifted.
“The HSBC Venture Healthcare Report provides an invaluable resource for understanding how the healthcare sector is adapting to new economic realities,” said Dr. Dylan Attard, CEO and Founder of MedTech World. “By dissecting investment trends across different segments, this report empowers stakeholders to identify opportunities and navigate challenges in a more informed and strategic manner. It underscores the resilience and innovation that continue to drive progress in our industry.”
A Focused Approach to Funding
After the challenges of 2023, new deal activity in 2024 reflected a more cautious and strategic approach. Early-stage investment faced significant hurdles, particularly in securing Series B financing. This trend resulted in fewer Seed and Series A deals, as investors prioritized later-stage, de-risked opportunities or larger syndications, including $100M+ mega rounds.
For companies that raised add-on or insider rounds in 2023, 2024 brought intense pressure to secure new investor-led financing, with many at risk of consolidation or shutdown. The emphasis on follow-on financing underscored the critical need for sustainable growth and demonstrated value.
Biopharma: Mega Rounds and Momentum
Biopharma emerged as a standout sector in 2024. First-financing dollars more than doubled compared to 2023, driven by 14 mega rounds, each exceeding $100M and accounting for 72% of the total. Oncology and platform companies led the charge, with significant growth in autoimmune, metabolic, and dermatology investments.
Crossover investors played a pivotal role in driving mega rounds, setting the stage for large-scale M&A or IPO activity. M&A activity surged, with 11 of 17 deals surpassing $1B in total value. IPOs also rebounded, with 18 launches focused primarily on Phase I and Phase II assets. However, post-IPO performance was mixed, with the median activity down 33%.
MedTech: Navigating Challenges and Opportunities
The medical device sector faced a more nuanced reality. First-financing investments declined as concerns about Series B financing and extended private M&A timelines grew. Despite this, neurology and NIM saw renewed interest, and Series B financings achieved significant up rounds.
Large deals dominated the med device space, with the top 10% of transactions capturing 60% of total investment dollars. Commercial scale-ups and pivotal trials led funding efforts, with cardiovascular companies spearheading private M&A activity. Notably, Ceribell’s IPO stood out, achieving a step-up valuation and robust aftermarket performance.
HealthTech: AI and Specialized Care Take Center Stage
HealthTech experienced a decline in early-stage investment, yet artificial intelligence (AI) maintained strong momentum, particularly in clinical workflows. Companies targeting underserved populations—such as women’s health, mental health, and senior care—continued to attract attention.
Investment levels normalized to pre-banking crisis figures, though Q4 activity slowed as investors awaited clarity on potential 2025 IPOs. Valuation resets became apparent, with many rounds remaining undisclosed, signaling insider-led adjustments.
Get Ready for MedTech World Dubai
The clock is ticking—MedTech World Dubai is just around the corner! Join global healthcare innovators and industry leaders at this unmissable event. Whether you’re seeking to expand your network, discover groundbreaking technologies, or create impactful collaborations, this is your chance to shape the future of healthcare. Reserve your spot today and secure your ticket before prices go up!
