57% of Catalan companies have reached the financial breakeven point, and 42% achieved it in their first or second year of life, a fact that allows them to reinvest resources in R+D, to reinvest resources in R&D, expand equipment and also grow internationally, with less dependence on new rounds of funding, thus consolidating the culture of financial efficiency in the health sector in the region. Moreover, 17% of Catalan start-ups in the sector are already operating in the market, reinforcing the maturity of the ecosystem and its capacity to scale, consolidating Catalonia as a national and international benchmark in a context of global uncertainty. These are the main conclusions of the study: “Investment in the Catalan health sector 2024”, elaborated by CATALONIA.HEALTH with the professional services firm EY.
The research, based on a survey of 190 companies members of CATALONIA.HEALTH and 15 investment funds, reveals that the community is positioned as a leader in R&D investment in the health sector, with a 57% share. The aim of the study is to identify opportunities to continue promoting health and trends that connect us to the future and focuses on two areas: monitoring the evolution of companies that lead the development of innovative solutions and the channelling of investment in R&D; and analysing the role of local investors. In this sense, companies have adopted solid financial strategies that allow them to reinvest in research and development, facilitating the expansion of teams and international growth, while reducing their dependence on new sources of funding.
In the words of Hugo Dosil, partner in charge of the Life Sciences sector at EY Business Consulting: "Investment in health is, without a doubt, an essential driver of economic and social growth; furthermore, collaboration between the public and private sectors is vital to create a robust ecosystem that allows companies to overcome challenges and capitalise on opportunities. Encouraging research and development is crucial to foster solutions that improve quality of life. Moreover, the integration of emerging technologies, such as artificial intelligence, not only optimises processes, but also opens new frontiers in treatment and diagnosis. It is essential to continue supporting companies in the sector, facilitating their access to funding and resources, and guiding them in a complex regulatory environment.
Despite these good figures in terms of breakeven, the study collects data that generate certain concerns, such as the loss of weight of the founders as the companies grow and need to raise funding. The balance begins to thin out in the first round of investment, where the founders' shareholding falls to 41%, a decline that intensifies from the second round onwards, when the new partners hold up to 82% of the investment capital. The biotechnology sector presents one of the most marked dilutions of the ecosystem, with the founders retaining only 13.7% of the start-up after the second round of investment.
Investment from Catalonia
During 2024, Catalan investors in the field of innovation and health will channel an aggregate investment of €160.29 million, according to the data collected in the survey. 29.24 M€ are earmarked for initiatives in Catalonia, which represents 19% of the total mobilisation, marking a slight decrease of 5% compared to 2023. Furthermore, in relation to the size of the operations, the average investment per project located in Catalonia is €2.92 M, a figure in line with the trends of operations in growth phases. Of the total investment attracted (374 M€) by Catalan start-ups in 2024, national investors accounted for 25%, compared to international investors, who accounted for 75%. This flow of investment reflects the need to strengthen the figure of local investors and identify opportunities to improve the ecosystem to continue promoting health through innovation channelled by start-ups and trends that connect us to the future. It should be noted that, although 17% of the startups already have a product, 83% are still in development and 63% have less than 1 year of operation without funding, and 22% between 1 and 2 years, a fact that makes the role of investors, especially national investors, key.
"The majority of indicators reflect a positive evolution and growth in the sector. However, it is equally important to identify those data that show a slight contraction, as is the case with local investment. The Study on investment in the health sector in Catalonia 2024 is not limited to showing the data. Having the participation and analysis of Catalan investors allows us to identify the main points of success, but also of setbacks, such as the perception that abroad there is a higher level of science and technology, associated with an opportunity to obtain a higher return on investment, or lack of experience in management, especially in the early stages", says Mariona Serra, president of CATALONIA. HEALTH.
Comments