Increasing adoption of digital technologies, the transition to value-based care, increasing government support and investment, especially after the impact of COVID-19 are all driving forces for the growth of healthtech innovation and adoption. 

Prior to the pandemic, telemedicine visits accounted for only 1-2% of all ambulatory care visits; now they account for 30% of all visits. The conventional fee-for-service healthcare model is being replaced by a value-based care model, which increasingly prioritizes patient outcomes and a greater focus on preventative care powered by AI/ ML predictive analytics and remote monitoring systems.

Related: The Digital Revolution of Healthcare

In 2022, healthtech startups raised $26 billion in VC funding across over 2,100 deals. 

The year before, healthtech celebrated its banner year, with startups having raised a total of $60 billion in investments across 3,160 deals. Despite the 2022 dip in funding, Healthtech startups were found to be more resilient on a deal value basis than many other industries such as FinTech, SaaS and AI/ML. 

Exploring the 7 Hottest Subsectors in Healthtech

1. Care Delivery

Central to the healthtech boom is the quest to enhance healthcare delivery. Technologies such as telehealth platforms have democratized access, allowing remote doctor-patient interactions. Furthermore, advancements in remote patient monitoring systems ensure vital signs are tracked from the sanctuary of one's home, while care management software provides personalized care to those with complex needs. 

This sub-sector is also empowering patients, giving them more control over their health and facilitating smoother clinical workflows. It’s a subsector that was pushed forward during the pandemic, and has only continued to gain steam. It has been the most widely funded digital health segment for the past five years.

	Global Example	MENA Example
Startup Name	Kry	Altibbi
Industry	Telehealth	Telehealth
Headquarters	Stockholm, Sweden	Dubai, UAE
Founded	2015	2010
Amount Fundraised	$729.4 million USD	$52.5 million USD
Website	https://www.kry.se/	https://altibbi.com/

2. Digital Therapeutics

Merging technology with holistic health, this arena provides tools ranging from mobile applications for managing chronic conditions to fun games teaching kids about healthy eating habits. Virtual reality is particularly noteworthy, offering therapeutic solutions for conditions like PTSD. Moreover, a focus on wellness has given rise to fitness trackers, nutrition apps, and meditation programs, emphasizing a holistic approach to health.

	Global Example	MENA Example
Startup Name	Click Therapeutics	GluCare Health
Industry	Digital Therapeutics	Digital Therapeutics
Headquarters	New York, USA	Dubai, UAE
Founded	2012	2020
Amount Fundraised	$926.4 million USD	$20 million USD
Website	https://www.clicktherapeutics.com/	https://glucare.health/

3. Research and Drug Development

The driving force behind medical progress is the research subsector. Clinical trial management systems, sophisticated data analytics tools, and biobanks form its’ core, ensuring smooth progress and safeguarding future investigations. Further, platforms dedicated to drug discovery, bolstered by AI, are speeding up the creation of new therapeutic solutions, revolutionizing the drug development landscape.

	Global Example	MENA Example
Startup Name	Insitro	Metabomed
Industry	Drug Discovery	Drug Discovery
Headquarters	San Francisco, USA	Yavne, Israel
Founded	2018	2014
Amount Fundraised	$743 million USD	$30.5 million USD
Website	https://www.insitro.com/	http://www.metabomed.com

4. Personalized Health

The one-size-fits-all approach is becoming obsolete, thanks to the rise of personalized health. This subsector boasts genetic tests revealing individual disease risks and employs precision medicine to tailor treatments. Digital therapeutics also play a role, using technology to treat or manage ailments in a bespoke manner. 

	Global Example	MENA Example
Startup Name	KindBody	Valeo
Industry	Personalized Reproductive Health	Personalized Blood Testing & Health Tracking
Headquarters	New York, USA	Dubai, UAE
Founded	2018	2021
Amount Fundraised	$306.3 million USD	$3 million USD
Website	https://kindbody.com/	https://feelvaleo.com/

5. Insurance and Financial Tech

Financing healthcare requires a blend of technology and strategy. Comprehensive health insurance plans, tools assessing patient health risks, and efficient insurance claim processing systems form the backbone of this financial subsector. 

 

	Global Example	MENA Example
Startup Name	Collective Health	Bayzat
Industry	Insurtech	Insurtech
Headquarters	San Francisco, USA	Dubai, UAE
Founded	2013	2013
Amount Fundraised	$719 million USD	$53.6 million USD
Website	https://collectivehealth.com/	https://www.bayzat.com/

6. Administrative Workflow

Behind the scenes, administrative tasks are going digital. Appointment booking, billing, coding software, HR systems, document management software, and procurement tools are all streamlining operations. Additionally, with data being healthcare's gold, this subsector uses tools like EHRs, data warehouses, and analytics platforms to extract invaluable insights, shaping healthcare's future. 

 

	Global Example	MENA Example
Startup Name	DoctoLib	Vezeeta	Okadoc
Industry	Patient Engagement	Patient Engagement	Patient Engagement
Headquarters	Paris, France	Dubai, UAE / Cairo, Egypt	Dubai, UAE
Founded	2013	2012	2018
Amount Fundraised	$816.5 million USD	$71.5 million USD	$22.3 million USD
Website	https://www.doctolib.fr/	https://www.vezeeta.com/en	https://www.okadoc.com/

7. Biometric Data Acquisition, Monitoring, Imaging, and Diagnostics

The modern healthtech landscape is incomplete without a focus on biometric data. Wearables, sensors, and cutting-edge imaging technologies are at the forefront, providing intricate insights into the human body. From tracking heart metrics to early cancer detection, these tools are reshaping diagnosis and monitoring.

 

	Global Example	MENA Example
Startup Name	Biofourmis	Medasense
Industry	Biometric Diagnostics	Biometric Diagnostics
Headquarters	Boston, USA	Tel Aviv, Israel
Founded	2015	2008
Amount Fundraised	$743 million USD	$30.5 million USD
Website	https://www.biofourmis.com/	https://medasense.com/

 

To read more about the transformative innovation of digital health in 2023 – read the full report here. 

Next Read: Meet the Top 5 Global Healthtech Unicorns