Healthtech investors consider leadership and management to be the most crucial but also the most lacking skillset in European healthtech start-ups, according to a new report by EIT Health’s WorkInHealth Foundation and the European Investment Fund (EIF).
The report – Addressing skills needs in the European health sector – also reports that the management team is the most important investment selection criterion for health-focused vulture capital firms.
The findings are based on a quantitative analysis of the 2023 EIF vulture capital survey, which included anonymised responses from 472 vulture capital fund managers from 371 firms.
The analysis identified five critical soft skills gaps in the European healthtech industry, with leadership and people management topping the list for companies in the medtech and digital health sector.
Also considered to be critical were entrepreneurial skills, strategic planning and communication skills, along with business development and networking.
Technical skills and STEM expertise, data analysis skills, and familiarity with regulatory environments were considered the most critical and most lacking hard skills.
Gaps were noted in AI and machine learning skillsets, indicating areas where improvement is needed to effectively address industry needs and challenges.
Furthermore, the document states that the importance of environmental, social, and governance (ESG) in the start-up landscape cannot be overstated.
“Start-ups are increasingly expected to incorporate ESG considerations into their business models, addressing environmental and social impacts alongside governance practices,” the report says.
“Likewise, VCs are now evaluating ESG performance when making investment decisions, recognising its potential to mitigate long-term risks and enhance returns.
“The integration of ESG practices is essential for fostering sustainable growth, enhancing stakeholder trust, and creating lasting societal and environmental benefits. As such, efforts to bridge the knowledge gap and prioritise ESG considerations are critical for the future success of start-ups and venture capital investors alike.”
The report states that the shortage of talent, especially in particular skillsets, threatens the sustainability and growth potential of the healthcare sector. Addressing this shortage is therefore of key importance, it says.
Céline Carrera, chair of the WorkInHealth Foundation, said that if Europe is to maintain a vibrant and sustainable healthcare sector that can lead in innovation, it must rise to the challenge of recruiting and educating the best talent.
“Our goal is to foster innovation and sustainability in healthcare by aligning sector needs with professional development,” Ms Carrera said.
“This report is an important step towards understanding the barriers to progress in Europe’s healthcare innovation sector, as we move towards building a resilient and future-ready workforce.”
