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COVID-19 encourages venture capital: €18 million for Spanish health companies

Venture capital is the main source of funding for health startups in Catalonia in 2020. Of the $140 million (€120 million) raised to date by Catalan healthcare companies, $93.8 million (€80.2 million) are from venture capital and is the only one still encouraged by the COVID-19 pandemic. Biotech companies Oryzon and Ona Therapeutics have obtained the largest amount of money.

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Investment in health from venture capital has been boosted by the coronavirus pandemic. The financing of the venture capital has reached $93.8 million (€80.2 million) in investment in health startups in Catalonia for the first time and with three months to go until 2020. 

Venture capital has been the only way of financing that has avoided the impact of the COVID-19 pandemic and has increased its investment with respect to 2019, according to the BioRegion Report 2020 – Challenges ahead of Biocat and CataloniaBio&HealthTech. 

If you want to find why COVID-19 encouraged investments in health startups, and how much funds the Spanish companies raised from venture capital, download for free the Born2Invest mobile app. Our companion app brings you the latest financial headlines for you to stay on top of everything that matters to you.

Spanish companies in the healthcare sector raised a huge amount from venture capital

Healthcare startups in Catalonia have maintained venture capital investment as their main source of funding. Of the $140 million (€120 million) raised to date by Catalan healthcare companies, $93.8 million (€80.2 million) come from venture capital, more than half of the total. In addition, the amount coming from this financing channel was $64.1 million (€54.8 million) in 2019. 

Venture capital has increased its investment in health startups in Catalonia and has exceeded the highest figure to date, $81.8 million (€69.9 million) in 2016. During that same year, a record number of operations with venture capital participation were recorded, 29 movements, and it continues to be higher than the operations recorded so far this year, 25 movements.

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Venture capital has gone from investing $64.1 million (€54.8 million) in health in 2019 to $93.8 million (€80.2 million) in 2020

For its part, the amount from public aid has risen to $17 million (€14.6 million) to date. Although there are still three months to go until 2020, the figure was $28.9 million (€24.7 million) in 2019 and the highest figure was recorded in 2017, when investment from subsidies was $40 million (€34.2 million). 

The stock market has financed the health startups in Catalonia with $23.4 million (€20 million) during 2020, $5.85 million (€5 million) less than in 2019. In fact, the record budget for this funding channel was last year, with $28.8 million (€24.6 million). Finally, the crowd equity has invested $5.97 million (€5.1 million) in the Catalan health startups. 

In 2019, the disbursement from this funding channel amounted to $9 million (€7.7 million).

The most important operations were those of Ona Therapeutics and Oryzon 

The operations with the largest amount in 2020 were those of Ona Therapeutics, which attracted $35.1 million (€30 million), and Oryzon, which obtained $23.4 million (€20 million), in biotechnology. 

Accure Therapeutics, Oxolife and Ability Pharma also obtained financing of $8.9 million (€7.6 million), $5.85 million (€5 million) and $5.85 million (€5 million), respectively. Finally, Neos Surgery was responsible for the highest investment in medtech, of five million euros, with the entry of Avançsa and Jiadel Medical. For its part, Qida, which specializes in digital health, obtained $4.2 million (€3.6 million) from Creas Impacto.

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First published in PlantaDoce, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Eva Wesley is an experienced journalist, market trader, and financial executive. Driven by excellence and a passion to connect with people, she takes pride in writing think pieces that help people decide what to do with their investments. A blockchain enthusiast, she also engages in cryptocurrency trading. Her latest travels have also opened her eyes to other exciting markets, such as aerospace, cannabis, healthcare, and telcos.