September 15, 2025
The first half of 2025 has been a turning point for European HealthTech. For years, Europe lagged behind the US in terms of scale, capital, and category creation. But this year, the tide has shifted: HealthTech is now the best‑funded sector in Europe, with over €6.2B raised in H1 2025, outpacing even deep tech and SaaS. This marks not just a rebound, but a structural shift in how healthcare innovation is built and financed on the continent.
At Calm/Storm, we’ve had a front‑row seat to these changes. As Europe’s most active early‑stage HealthTech investor, we see hundreds of new companies every quarter. Below, we share the trends shaping the future of health and wellbeing - what founders need to know, and why now is the time to build in Europe.
In 2023-24, AI in healthcare was hype. In 2025, it’s implementation. Over 70% of large hospitals globally now use AI in atleast one of radiology, pathology, cardiology, or triage, and Europe is catching up fast. GP practices are deploying ambient AI and voice‑recognition tools to slash administrative burden - automating referrals, notes, and compliance reporting.
Portfolio snapshot: Aiomics is powering hospitals with AI‑driven documentation infrastructure, while HealthForce is bringing intelligence into hospital workflows. Both are examples of Europe’s “quiet AI” wave: less headline‑grabbing than generative chatbots, but embedded deeply in care delivery.
Two regulatory shifts in 2025 are reshaping the playing field:
This is good news for startups: clear rules reduce uncertainty. Expect to see founders designing products for trust, compliance, and patient‑centricity from day one.
The funding boom is real: €2B in Q1 2025 alone, up 82% YoY. Mega‑rounds have returned, but so has breadth: we now see strong early‑stage activity across diagnostics, hybrid care, and women’s health.
Portfolio snapshot: Foundation Health, led by Umar Afridi (ex‑Truepill), raised £6M to build the “API layer” for pharmacies and telehealth. Infrastructure may be invisible, but it’s where much of the value is being created.
European hospitals are rapidly adopting AI‑enabled smart infrastructure - from robotics in operating rooms to IoT‑powered wards. The market is forecast to hit $148B by 2029. At this year’s European Society of Cardiology Congress, researchers showcased an AI‑powered stethoscope diagnosing heart disease in 15 seconds and a cheek‑swab test detecting cardiac conditions years before symptoms.
The line between clinic and home is also blurring. Calm/Storm portfolio company 9am Health exemplifies the “hospital at home” model, managing chronic conditions through a digital‑first care pathway.
AlbionVC’s latest HealthTech market map highlights the rise of consumer‑driven health: mental health, femtech, fertility, and even taboo categories like sexual wellness and menopause. These markets were once overlooked by VCs; today, they’re some of the fastest‑growing verticals.
Portfolio snapshot: Béa Fertility and Fertifa are redefining access to reproductive care, while The Lowdown is building Europe’s largest contraception review platform. These companies prove that patient demand is strongest where stigma has historically kept innovation away.
If you’re building in European HealthTech in 2025, three things matter most:
2025 is Europe’s HealthTech moment. With capital flowing, regulation aligning, and adoption accelerating, founders have a once‑in‑a‑generation opportunity to reshape how care is delivered. At Calm/Storm, we are proud to partner with entrepreneurs pushing the boundaries of what’s possible - from TabooTech to smart hospitals.
