International Markets Attract Interest from NHS Start-ups: Reason Explored

In the vibrant landscape of the UK's MedTech and Life Sciences industries, a shift is underway. Health clustering is strong in regions like Cambridge, Leeds, and London, where access to the National Health Service (NHS) is relatively straightforward. However, in other parts of the country, navigating the healthcare system can be more challenging (Health clustering, NHS access).

This dynamic industry is marked by the adoption of new technologies, which varies across regions due to the existence of 'Test Bed' sites and 'Innovation Hubs' at a local level. This complexity can make market access a challenge (Technology adoption).

The UK's MedTech start-ups are not deterred by these complexities. They are dynamic and agile, adapting to changing circumstances and seeking to get innovation into the market as quickly as possible. In fact, the traditional approach of gradually growing in your own market before considering exporting is dying out. Start-ups are now taking a personalised approach to growth, going where the opportunities for the biggest impact exist (Start-up growth strategy).

This transition requires a clear strategic vision on how to achieve operational scale while staying true to the fundamental focus on breakthrough science. Start-ups are transitioning from being research-led to becoming more commercially focused earlier on due to the challenges of internationalisation (Transition to commercial focus).

The UK's MedTech start-ups are increasingly looking overseas for funding. In 2021, the estimated inward life sciences foreign direct investment (FDI) in the UK was 1.9 billion GBP, coming behind only the USA in terms of value. A significant proportion of this funding came from overseas investors, especially from the US and Asia (Foreign funding).

One such startup, 7Learnings, recently secured a €10 million Series B funding round to drive its international expansion, focusing on entering the North American market. Tilla, a tech company specialising in crew logistics, received financing to scale internationally and develop its platform globally, with investors including MHA (MHA investment). Even a lingerie brand, saint sass, successfully expanded into the USA, supported by international funding, with their co-founder hosting events in Los Angeles as part of their growth strategy (International success stories).

The NHS, a global brand in healthcare, presents a unique opportunity for start-ups. Supplying the NHS confers a reputation of trustworthiness, high quality, and value-drivenness to international healthcare providers (NHS as a market).

In the absence of in-house expertise, start-ups are adopting a strategic approach and seeking expert advice from industry associations and professional services firms. Yogan Patel, a Partner at MHA, a UK member of Baker Tilly International, provides valuable market insights in 146 countries through the wider Baker Tilly International network (Expert advice).

However, navigating internationalisation is not without its challenges. Companies face complex regulatory frameworks, intellectual property protection, cultural barriers, and understanding of complex financial and accounting rules. But start-ups are adapting to these challenges by building a team with the necessary experience, expertise, knowledge, and capabilities to exploit new opportunities (Adapting to challenges).

In a recent article in "Medical Plastics Insights", there was a discussion about ending the trade-off between patient safety and sustainability (Sustainability and patient safety). As the UK's MedTech start-ups continue to grow and adapt, it will be interesting to see how they balance innovation, sustainability, and patient safety in the years to come.