Finland offers great potential for investors looking for new health innovations. According to a survey commissioned by Health Capital Helsinki, Finnish health startups are facing an urgent need for funding.

There are approximately 400 health startups in Finland, a quarter of them located in the Helsinki Metropolitan area. Health Capital Helsinki, in collaboration with Upgraded, conducted a survey on Finnish health startups of their current needs and challenges.According to the survey, the most critical and urgent need lies in raising funding. Most of the startups say that they need funding immediately (42%) or within a year (42%). Other significant needs mentioned in the survey include support for sales and marketing and finding reference and pilot customers.Health startups also have recruitment needs. Within a year, 75% of the startups plan to hire salespeople, 67% plan to hire R&D or technical specialists, and 47% plan to hire marketing specialists.“Securing funding and finding a strategic funding partner in the early stage is vital for a health startup. Healthcare innovations take years to develop, testing and validation is complex and slow, but once you get there, the opportunities are huge,” says Juha Paakkola, Director of Health Capital Helsinki.“Finland produces great research- and science-based innovative startups, but as a small country, the health-focused funding resources are limited. Therefore, connecting innovative startups with health-specialised international investors is a key priority for Health Capital Helsinki,” Paakkola adds.

Finland produces great research- and science-based innovative startups, but as a small country, the health-focused funding resources are limited.

Public procurement and finding the right investors seen as bottlenecks

The majority of interviewed startups voiced that innovative businesses are well-supported in Finland. Crucial information needed, for instance, about regulatory compliance, is easily accessible and well laid out. Various grants and loans from Business Finland, as well as targeted activities in the Uusimaa region, are also strongly appreciated by the interviewed companies.According to the interviewed companies, challenging areas include the slow timeline and lack of transparency in public procurement, as well as finding the right investors. From supporting organisations such as Health Capital Helsinki, companies are mostly looking for tailor-made introductions and connections to relevant parties.

Healthcare innovations take years to develop, testing and validation is complex and slow, but once you get there, the opportunities are huge.

Demand in digital health demand and leaps taken in biotech create great opportunities for Finnish companies

Connecting startups with investors and corporations

One of the main focus areas of Health Capital Helsinki is to match the right startups with the right investors and corporations at the right time. An example of this is the Finnish Health and Life Science Research Showcase to Investors 2020 event that introduced 26 promising research projects from Finnish universities to almost 40 investors. The event is organised again in December 2021.Another example is the Nordic Big Pharma Reverse Pitching Event, organised in September 2021, giving over 100 startups the possibility to connect with three global pharmaceutical companies. In addition, the Health Capital Helsinki team organises tailored one-on-one introductions when suitable matches are found. Health Incubator Helsinki, a comprehensive incubator program for health startups launched in 2020, is currently supporting 24 startups and research teams, with Health Capital Helsinki actively involved. Health Capital Helsinki is also connecting key ecosystem stakeholders and building up a stronger and forward-looking health community in the Helsinki region.