healthcare.digital October 19, 2025
The European HealthTech M&A and funding environment is characterised by a “flight to quality,” increased investor selectivity, and a strong focus on proven business models and clear pathways to profitability. The market is maturing, favouring larger, strategic deals and companies with demonstrable clinical and financial success.
Here are 10 key factors European HealthTech founders should be aware of:
1. Focus on Profitability and Recurring Revenue
Investors and acquirers have shifted from prioritising growth at all costs to demanding a clear path to profitability and strong unit economics.
Valuation Premium: Companies with a high percentage of recurring revenue (e.g., Software-as-a-Service/subscription models) and high gross margins are receiving premium valuations (often 5.5x to 7x revenue multiples for value-based care/analytics solutions).
Founder Focus:...
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