German health start-ups need to catch up

A new report shows that Germany is lagging behind as a location for innovation in the healthcare sector, despite recent success stories from the Ruhr region or the development of the Corona vaccine.

The RAG Foundation and the German Startups Association today presented a new study on startups in the healthcare sector and the development of the Ruhr region as a healthcare location. Overall, Germany would lag behind as an innovation location in the healthcare sector. While in the US 213 billion US dollars flowed into health startups in the past five years, in Germany, on the other hand, it was only 6 billion US dollars. The report shows that 15.6 health startups are founded per 100,000 inhabitants in Israel and 7.7 in the USA. In Germany, the figure is only 2.2.

The Ruhr region has attracted positive attention in the healthcare sector with success stories such as Emergence Therapeutics, the two most valuable German health start-ups. Also, by the start-up Phenox, which recently managed a major exit. "Nevertheless, it is clear that we are not yet exploiting the opportunities that exist for health startups, such as those arising from the strong research or excellent university hospitals in our region," says Bernd Tönjes, CEO of the RAG Foundation.

That's why the RAG Foundation and the start-up association are proposing measures for the region. Universities and research institutions are to sensitize scientists to start-ups by offering industry-specific support. Science and entrepreneurship should be brought closer together through good networks. In addition, the foundation and the association recommend a seed & scale program for start-ups in the healthcare industry. This should help founders establish contacts with investors and become "fundraising-ready."