A new report from the Startup Coalition has taken a deep dive into the state of the UK healthtech sector in 2025, revealing a vibrant but challenged ecosystem. While innovation is thriving, startups continue to face regulatory bottlenecks, funding inequalities, and procurement delays, particularly when trying to partner with the NHS.
The findings stem from surveys, stakeholder interviews, and case studies conducted with over 100 healthtech leaders, founders, and investors across the country.
Key Findings: Innovation Amid Inequality
- 84% of UK healthtech founders said their product could improve NHS services today
- Yet only 38% have a live NHS contract, due to red tape and slow procurement cycles
- Women founders and diverse teams face notable disparities in accessing venture capital
- Despite these gaps, AI, digital therapeutics, and patient engagement tools are the fastest-growing segments
“We’re seeing an explosion of innovation—but not enough action to help it reach patients,” said Francesca Wuttke, Chief Digital Officer at Startup Coalition.
NHS Must Do More to Embrace Innovation
One of the report’s strongest recommendations is for the NHS to reform its procurement models. Startups often find the entry barriers too high to bring valuable technologies into clinical settings, with many citing:
- Lack of standardization across NHS trusts
- Long onboarding and tendering cycles
- An inconsistent approach to pilot funding and scaling
The coalition urges the government to create fast-track approval mechanisms and dedicated healthtech procurement teams.
Gender Equity Still Lags in HealthTech Funding
The report also calls attention to continued gender imbalance in healthtech investment:
- Startups with female founders or co-founders are significantly underfunded
- Women-led healthtechs take longer to raise and close rounds
- Despite being more likely to build patient-centric and inclusive technologies, they often struggle to scale
Digital Health Is Booming — But Needs Stronger Policy Support
The UK’s digital health ecosystem is thriving, particularly in areas like:
- Remote diagnostics and monitoring
- Behavioral health and mental wellness platforms
- Genomics, AI diagnostics, and wearable tech
However, founders are calling for more predictable regulations, tax incentives, and funding initiatives to compete globally and attract top talent.
Key Takeaways:
- UK healthtech startups are building game-changing solutions but struggle to access the NHS.
- Procurement reform and better public-private collaboration are essential to drive adoption.
- The sector must address funding inequalities faced by women and minority founders.
- Policy innovation is needed to fully unlock the digital health potential of the UK.
Source: Startup Coalition – Taking the Temperature of the HealthTech Sector
