Q2/H1 MedTech Funding Report

What are the Key Trends for MedTech Funding in 2025?

Funding Is Up: Despite US market turbulence and global stiffening of regulatory policy, there was a 33% increase in Q2 2025 MedTech funding, compared to 2024. 

Increased Funding Volume, with Concentration: While overall funding volume is higher in 2025, the number of companies receiving investment has decreased. This suggests a concentration of capital, with funded companies securing substantially larger sums. 

Striking Regional Shift Towards EMEA: A particularly noteworthy finding is the disproportionately high investment in the EMEA region. A remarkable 71% of the top-funded companies in Q2 2025 are headquartered in EMEA, compared to just 14% each in North America and APAC.  

Stable US Grant Funding: Concerns about early-stage US funding being impacted by political agendas have yet to be realised, for now. NIH and SBIR grant funding to MedTech companies in 2025 continues to track consistently with previous years. 

What do These Funding Trends Mean for MedTech Service Providers?

These trends, while seemingly straightforward, carry profound implications for various stakeholders within the MedTech industry. 

For service providers – from CROs and preclinical labs to design & development, regulatory, and CDMOs – the message is clear: the increased funding concentration demands a far more precise and data-driven commercial approach. The sales signals that service providers have traditionally looked for and used – funding, VP of sales hiring, board changes, etc – have become mainstream, and simply open the faucet for massive amounts of outreach from all vendors. The most successful service providers today are using intelligent tools to uncover opportunities – new patents, new therapeutic area’s, expansion plans, future clinical trials, and/or future commercialisation plans, etc – before the horns blare. The ability to surface these hidden micro movements is the level of insight and granularity needed to capitalise on this increased, but condensed funding observed in Q2 2025.  

How Should MedTech Companies Respond to Larger Funding Rounds?

For MedTech companies themselves, especially those fortunate enough to secure these larger funding rounds, the stakes are unquestionably higher. With more capital comes increased pressure for rapid execution, accelerated product development, and a clear path to market. This may also lead to a greater discernment in choosing service partners, favouring those who can truly act as strategic partners, rather than mere vendors.  

Is the Regional Shift Towards EMEA Permanent?

The geographic shift towards EMEA is particularly intriguing. Is this a temporary blip due to US market volatility, or does it signal a more permanent rebalancing of the global MedTech investment landscape? For service providers, this means a critical re-evaluation of their geographic sales and marketing strategies. Should they be establishing stronger presences in European hubs? Are there unique regulatory or cultural nuances in EMEA that will require adapted service offerings? This could foster greater cross-border collaboration and potentially lead to a more diversified global MedTech innovation ecosystem. 

Why does Stable US Grant Funding Still Matter?

Furthermore, the continued stability of US grant funding for early-stage companies is a reassuring sign. It suggests a resilient foundation for innovation, even if private investment is becoming more condensed. This pipeline of early-stage, grant-funded companies will continue to be a vital source of future opportunities for service providers specialising in foundational R&D, regulatory navigation, and early clinical development. 

MedTech Funding Outlook: What Comes Next?

In conclusion, the 2025 MedTech funding landscape, points to a healthy yet highly selective market. For all players, adapting to concentrated funding and shifting regional dynamics will be paramount to navigating the future and capitalising on the abundant opportunities within this vital industry.

References

• https://blog.zapyrus.com/q2-2025-medtech-financial-report

Disclaimer. The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of Test Labs Limited. The content provided is for informational purposes only and is not intended to constitute legal or professional advice. Test Labs assumes no responsibility for any errors or omissions in the content of this article, nor for any actions taken in reliance thereon.