Gone are those days when medical research and innovation was only the forte of big pharmaceutical companies or research institutions. Nowadays healthcare startups are coming up with novel ideas, promising new discoveries and better healthcare delivery using simple apps or technologies. Rising income levels, an ageing population, increasing prevalence and awareness of lifestyle diseases have led to a strong demand for health-care services in Asia, leading to burst of many healthcare startups across the continent.
Creating a new record, Venture capital (VC) funding including private equity and corporate venture capital- in the Healthcare IT sector came in at $5.1 billion in 622 deals in 2016. Significant percentage of Asia’s population lies below national poverty line and reside in remote areas without access to basic health services. Many startups have worked towards providing basic health services to these people by successfully marrying technology and healthcare together, creating unique healthcare models. As healthcare systems across Asia modernize, these startups are racing to capture new opportunities and cash in on Asia’s untapped opportunities.
The past decade has seen a number of biotechnology startups establishing themselves in many Asian countries. "The Asia Pacific is a dynamic region with growing opportunities for business," underscored, Dr Carl Firth, Chief Executive Officer and Founder, Aslan Pharma. "Specific to the healthcare sector, demographic trends such as ageing populations, a rise in chronic illnesses and a growing incidence of non-communicable diseases, along with greater pressure and demand for better value-based healthcare outcomes, have given rise to the need for better innovations. The rise of venture capital has also been a game changer for startups in Asia. In Singapore alone, the total value of private equity and venture capital (VC) deals in 2016 was S$3.5 billion. There has also been a shift in the focus VC firms who are now paying attention also to companies in later-stages of growth, providing more support to companies who need funding beyond their initial stages."
Japan, being a hub for innovation, has always led the way for biotechnology development and investments in Asia. China, South Korea and India with their huge population and healthcare challenges are emerging as biotech clusters with many notable startups in the region. New entrepreneurship communities have also emerged in Malaysia and Indonesia. The implementation of Universal Health Coverage in Indonesia has spurred the demand for quality healthcare services in the country, thus attracting investments from companies and investors alike. Australia, too, is an emerging market for health opportunities and is considered as a global leader for e-health. It is one of the very few countries that has integrated e-health into its health systems. Taiwan, China has exhibited very strong medical devices R&D capability that attracts investment opportunities. E-health is considered as one of the highlights by government in Taiwan, China and it has set funding to attract foreign medical devices & e-health companies to set up in Taiwan, China.
Asian governments are playing an active role in creating a fertile ground for start-ups to thrive and flourish. Kane Black, CEO, Novasatra, highlighted, "Asia is starting to develop biotech hubs as some of the more developed economies. Singapore and Taiwan, China, for example, are investing heavily to carve their niche in this industry by encouraging entrepreneurs and developing their local talent pool. This push is creating a more conducive environment for the launch of innovative healthcare companies with compelling business plans, and investors are taking notice."
Start-ups that attract VCs
Immuno-oncology, cancer metabolism, gene therapy, orphan diseases, autoimmune disorders – there are a broad range of disease settings that are capturing the excitement and imagination of investors today. Despite recent trends that suggest mobile health, nanotechnology and personalized medicine to be the future of healthcare, it is the pharmaceutical sector that attracts nearly 70 percent of the capital funding in Asia. Historically, most of the venture capitalists investments in this sector tend to go in late stage drug development companies and generics and funds are mostly concentrated on low-risk growth...
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