From Telemedicine to AI: 5 Major HealthTech Investment Trends in 2023
Welcome to the exciting world of HealthTech, where healthcare meets technology in a dynamic and rapidly evolving sector. At MadAppGang, we have a wealth of experience developing HealthTech applications, and we're here to fuel your creativity.
If you have an idea for a HealthTech app, we're here to provide some food for thought. And if you decide to take the leap, we can help you bring your vision to life.
In this article, we explore the hottest trends in HealthTech investments, shedding light on the areas attracting substantial funding and driving industry growth.
The state of the HealthTech market
HealthTech is experiencing a remarkable surge in investment and funding on a global scale. According to industry reports, HealthTech startups secured a record-breaking $15.3 billion in funding in 2022, an impressive 67% increase from the previous year. You can compare existing trends with the trends from the previous year that we talked about in this article.
This immense growth demonstrates the sector's potential, making it highly attractive to venture capitalists and institutional investors alike.
Let's dive into the top five trends shaping the HealthTech landscape:
Trend #1: Artificial intelligence (AI) and machine learning (ML)
AI and ML are pivotal in transforming healthcare delivery.
The use of these tools is revolutionising patient care with innovations in predictive disease analytics and personalised treatment plans, among others. Early disease detection benefits from the data-driven insights AI and ML can offer, enabling proactive interventions and better outcomes.
An individualised approach to treatment plans, enabled by AI, optimises efficacy and can minimise side effects. Additionally, AI and ML help drive medical research with accelerated drug discovery and diagnostic advancements.
Wearable devices equipped with AI capabilities enable real-time patient monitoring, empowering individuals to manage their health actively. Investors have been quick to recognise the potential of leveraging AI for diagnostic tools, drug discovery, and patient monitoring systems, funding startups in this area.
We are the creators of SmartRun, a health and fitness application that uses AI and science to optimise running and improve users’ overall heart health. SmartRun integrates with various sensors such as velocity, accelerometer, rotation rate, GPS, and heart rate monitors, including compatibility with Apple Watch.
This comprehensive approach allows SmartRun to track and monitor running progress with precision, prevent injuries, and motivate users through social sharing features. Additionally, it leverages heart rate variability to provide even more insights into overall health and fitness.
Our approach is using AI to adapt training plans continuously. Starting with low-intensity sessions, the AI monitors the user's heart response, gradually increasing the training intensity as the body becomes more prepared.
To improve the AI's capabilities, we continuously collect anonymous training data, allowing the AI-powered biofeedback engine to become more intelligent every day. Instead of averaging, it offers personalised feedback.
Trend #2: Telemedicine and remote patient monitoring
COVID-19 propelled telemedicine and remote patient monitoring solutions to the forefront of the healthcare industry. The unprecedented challenges of social distancing and mobility restrictions meant these technologies emerged as vital lifelines, ensuring access to healthcare services.
Telemedicine platforms helped patients receive care from healthcare professionals safely, minimising exposure risk. This convenient, remote approach to consultations was a game-changer, as patients of all ages and demographics embraced virtual healthcare.
The Australian government is investing significant resources and effort into advancing telehealth and remote patient monitoring. An example of their commitment to modernising healthcare is the cutting-edge My Health Record tool, which centralises an individual's medical records. My Health Record securely stores comprehensive health information, including diagnoses, test results, and treatment history. Authorised healthcare providers can access this data to provide more informed and efficient care.
Importantly, patients retain control over their records by deciding who can view their information. My Health Record improves care coordination and emergency care, and empowers individuals to actively manage their health.
The introduction of electronic prescriptions marks another step in the country’s journey to transform healthcare.
MadAppGang worked on an innovative remote health monitoring project for a Melbourne clinic. The ‘Melbourne Doctor: Secure My Health’ application is designed to make life easier for people who take medication regularly.
The app reminds people to take each dose of medication. After taking a pill, the patient makes a mark in the app, they can also take a picture of the packaging and the app records the dose taken. This allows for an accurate record of medication use.
The app also tracks medication expiry dates and remaining doses, automatically sending a new prescription request to the doctor when the pack is empty. The doctor can also monitor the patient's medication schedule through the app, providing an additional tool to ensure effective treatment.
For those who care about their loved ones, we've added a 'watcher' feature. This allows loved ones, such as children or carers, to check that doses are being taken as prescribed. If a dose is missed, they'll receive an instant notification.
Secure My Health can also be used to schedule regular check-ups, tests, and visits to specialists. Users can also make surprise visits to the doctor when their health needs immediate attention.
We designed Secure My Health to make patients' lives easier and their healthcare more organised.
Trend #3: Digital health platforms
Integrated digital healthcare platforms that connect patients, providers, and data analytics are increasingly popular with investors. These platforms offer seamless data exchange, efficient healthcare management, and simplified communication, making them attractive for investment. They also facilitate real-time collaboration between healthcare providers, improving care coordination and reducing the risk of errors.
The integration of data analytics capabilities provides deep insights into patient populations and healthcare trends. Healthcare providers can use this valuable data to identify areas for improvement, optimise treatment protocols and improve the overall level of care.
We collaborated with Evrima Technologies to build a recruitment platform for clinical trials of new advanced medicines.
The platform significantly accelerated clinical trial timelines, ensuring that life-changing therapies reach people faster.
By automating patient selection based on researcher criteria and sending notifications to doctors, we've eliminated tedious manual searches, streamlining the process and easing the administrative burden on researchers. Now they can focus on the high-quality clinical work needed to get new medicines from the lab to the clinic.
Trend #4: Augmented reality (AR) and mixed reality (MR)
AR and MR have proven to be highly beneficial in various healthcare settings. One practical application is the use of mixed reality headsets, such as the Microsoft Hololens 2, by surgeons.
By wearing these headsets, surgeons can access essential information displayed in their field of view, allowing them to maintain a clear focus on the procedure while using both hands.
The integration of heads-up information during surgery not only improves the surgical process but also enables collaborative and remote work, making it valuable for training purposes. Through the head-mounted camera view of the headset, other medical professionals can observe the surgery and provide valuable insight and advice.
Trend #5: Organ care technology & bioprinting
The field of 3D bioprinting has already entered clinical trials. Various organs such as ears, corneas, bones, and skin are currently undergoing clinical testing as researchers explore the potential of 3D-printed organs.
In the future, expect to see rapid improvements in organ care technology for organs outside the body. For example, the Organ Care System, developed by Transmedics, is a remarkable device that can support a heart, lung, or liver for several hours post-removal by providing proper care, warmth, and essential nutrients.
Perhaps more importantly, machine learning will be able to better determine whether a stored organ is suitable for transplantation or not. The sooner this can be determined, the sooner lives can be saved.
Factors driving HealthTech investments
When developing new solutions in this area, let's take a look at what factors need to be considered:
- Personalised healthcare
There is increased demand for personalised healthcare solutions tailored to individual patient needs. Investors recognise the potential of HealthTech in providing personalised treatments and diagnostics, driving investments in companies with such capabilities.
- Regulatory changes and policy support
Regulatory changes and supportive policies have created a conducive environment for HealthTech investments. Governments worldwide recognise the importance of digital health solutions and implement favourable regulations, encouraging investors to participate in the sector.
- Impact of COVID-19
COVID-19 acted as a catalyst for HealthTech investments. The need for remote and digital healthcare services during lockdowns propelled funding into telemedicine, digital health platforms, and health monitoring technologies.
Challenges and risks in HealthTech investments
Despite the promising outlook, HealthTech investments come with their share of challenges and risks. Data privacy and security remain significant concerns as the sector deals with sensitive patient information. Compliance with healthcare regulations can also be complex and demanding, potentially affecting startups' growth and funding prospects.
Moreover, achieving widespread adoption of HealthTech innovations can be challenging, as the healthcare industry is traditionally slow to adopt new technologies.
The HealthTech industry is experiencing an unprecedented surge, with disruptive technologies and innovations changing healthcare for the better. From AI-driven diagnostics to telemedicine platforms, investors are backing startups at the forefront of this transformation.
The convergence of technology and healthcare promises a brighter future for patients around the world with improved accessibility, efficiency, and personalised care.
Despite the challenges, the commitment of investors and the dedication of HealthTech startups point to a promising road ahead. If you have a brilliant idea in the healthcare sector and want to make a difference, count on us at MadAppGang with our diverse years of experience to help you turn that idea into reality. Together, we can change healthcare and positively impact people’s lives.