By Liz Klein, Investment Director at Calculus
How has the healthcare sector performed in 2023?
Lack of financing has been a constraint to the recent performance of the sector. The listed markets have faced challenges with relatively poor returns and few initial public offerings.
In contrast, the private markets have experienced success as companies have been raising funds privately rather than going public. Larger venture capitalists have not been exiting investments due to this trend thus the cycle of cash has been hampered.
In which healthcare subsectors do the best investment opportunities lie?
People are living longer but are not necessarily healthier in old age. This has led to an increase in diseases of ageing which require solutions.
Governments are also unable to manage healthcare in the same traditional way, creating a requirement for advancements in healthcare, disease management and digital innovation. These trends present significant investment opportunities.
Tech AI, tech bio, and digital health are generating quite a buzz, and it’s for a good reason. These buzzworthy terms are likely to revolutionise the way people receive quicker and more efficient treatment. As these algorithms continue to advance and become more sophisticated, their potential to make a positive impact on healthcare will grow even more substantial.
What role can the VC sector play in boosting healthcare investment in 2024?
The outlook for the healthcare sector is promising. There is a growing trend of increased investment by large corporations and a surge in mergers and acquisitions (M&A) involving innovative healthcare companies.
This influx of investment and M&A activity is expected to drive growth in the healthcare sector for the next five years. Notably, the positive impacts of substantial investments in dementia-related research are starting to manifest, further contributing to the sector’s positive outlook.
Calculus pioneered tax efficient investing through the launch of its first EIS Fund in 1999, and subsequently its VCT. Calculus targets high growth, UK based private companies across the fastest growing sectors in the UK – technology, healthcare and entertainment. Over the past 23 years, Calculus’ experienced team have built a strong reputation for delivering profitable portfolio company exits. Successful exits deliver tax free capital growth to EIS investors and fund the tax free dividend stream for VCT shareholders.
For more information, please visit www.calculuscapital.com