The British Business Bank (BBB) has committed €25m (£21.26m) to EQT Life Sciences’ Health Economics 3 Fund (EQT HE3) to support scaling medical technology and digital health companies.
The investment is aimed at driving innovation across Europe and encouraging greater capital flow into the UK’s high-potential life sciences sector, one of the eight key growth areas outlined in the UK’s Industrial Strategy.
The EQT HE3 fund targets commercial-stage, de-risked medtech, diagnostics, and digital health technologies that aim to simultaneously improve the quality of patient care and lower healthcare costs.
The commitment builds on an existing relationship between the state-owned development bank and EQT Life Sciences.
BBB previously co-invested alongside EQT in both Phagenesis’ $42m (£31.2m) Series D round and Cyted Health’s $44m (£32.68m) Series B last year.
“The UK is home to a world-class life sciences sector, but scaling companies in the sector requires specialist investors,” said Christine Hockley, managing director and head of commercial equity funds at the British Business Bank.
By investing in high-quality international funds, we encourage greater investment to flow back into the UK and ensure UK companies benefit from the capital and expertise of leading investors.
Drew Burdon, partner at EQT Life Sciences, added: “Over recent years we have built an excellent relationship with The Bank through co-investments in leading UK health tech companies.
“The Bank’s investment will further contribute to our commitment to tap into the attractive UK health tech ecosystem and grow strong companies together.”
