Institutional Investment: A Key to Health Tech Growth
Netherlands, Thursday, 3 April 2025.
Constantijn van Oranje highlights the need for institutional investors to focus on venture capital rather than direct funding to effectively scale health tech innovations.
The Current Investment Landscape
Dutch growth companies secured €3.1 billion in investments last year, yet this capital has become increasingly concentrated among a smaller number of companies [1]. This trend particularly impacts health tech startups in their early stages, where securing funding has become progressively challenging. The issue extends beyond mere capital availability, as Constantijn van Oranje emphasizes that the healthcare sector’s primary challenge lies not in innovation supply but in the sector’s capacity to adopt these innovations [1].
Strategic Investment Approach
Rather than advocating for direct institutional investment, van Oranje promotes a more nuanced approach through venture capital funds [1]. This stance comes in response to recent proposals, including a suggestion to establish a €1 billion age tech fund backed by pension funds [1]. The Special Envoy emphasizes that pension funds must prioritize viable propositions that generate returns for beneficiaries while supporting innovative healthcare solutions [1].
Digital Infrastructure: Learning from Global Success
Van Oranje points to India’s Aadhaar system as a model for effective digital infrastructure development [1]. This approach demonstrates how intelligent architecture can address issues that Europe typically tackles through regulation, such as interoperability and public-private collaboration. The success of this model suggests that Europe should focus on building comprehensive digital infrastructure rather than retroactively connecting legacy systems [1].
Future Outlook
The dialogue around health tech funding will continue at the upcoming Nationale Zorginnovatieprijs event on April 9, 2025, at Jaarbeurs Utrecht [1]. This event, where van Oranje will announce the winner of the 10th National Healthcare Innovation Prize, provides a platform for further discussion on scaling health tech innovations [1][2]. The timing is crucial, as it precedes other significant industry events, including the Healthy Funding 2025 conference scheduled for April 17, 2025 [3], indicating sustained momentum in addressing healthcare innovation funding challenges.