6 Key Takeaways From the Capital for Cures Summit, Amsterdam: Investing in the Future of Healthcare

The global healthcare industry remains a cornerstone of innovation and investment, driving critical developments in healthcare and pharmaceuticals that impact billions of lives. Yet in 2024, dealmaking in this sector faced a significant shift. Private equity (PE), mergers and acquisitions (M&A), and venture capital (VC) activity have adapted to a landscape shaped by economic pressures, regulatory complexities and surging interest in health technology.

Earlier this year, SS&C Intralinks and Slate Mountain Capital partnered to host the latest Capital for Cures Summit in Amsterdam. Bringing together leading professionals in healthcare investment, the event facilitated key discussions on directing capital toward early-stage companies, emphasizing access to healthcare and balancing financial performance with societal impact. Below, I explore the major takeaways from the summit, alongside key data from the SS&C Intralinks Global M&A and PE Trends in Healthcare report.

1. The significance of ESG metrics in investment decisions

Environmental, social and corporate governance (ESG) considerations are playing an increasingly influential role in healthcare investments. Many investors are prioritizing quantifiable impacts, such as patient reach, affordability and adherence to ethical clinical trials. One notable framework discussed at the event was from the Access to Medicine Foundation, which provides clear, quantifiable indicators to help investors and companies align with broader societal benefits.

Reflecting a broader industry shift, investors today are increasingly focused not only on financial returns but also on how innovations address global healthcare accessibility challenges — a trend particularly evident in the pharmaceutical and biotechnology sectors, which together account for nearly half of the USD 202.8 billion raised through PE-backed healthcare deals in 2023.

2. The role of technology in transforming Healthcare

Technological advancements, particularly in artificial intelligence (AI), are rapidly transforming the healthcare landscape. At the summit, numerous speakers highlighted AI’s role in optimizing drug discovery, improving clinical trial efficiency and streamlining operational supply chains. AI enables startups to analyze vast volumes of data, reduce costs and deliver precision solutions with broad societal impacts. Other innovations, such as wearable medical devices, digital health platforms and virtual reality (VR) training tools, are also attracting investment due to their potential to enhance patient care and operational efficiency. Healthcare service providers are similarly benefiting from digital transformation, which is enabling the shift toward value-based care delivery models.

A notable case study featured in the SS&C Intralinks Global M&A and PE Trends in Healthcare report underscores the growing confidence in AI-led breakthroughs, highlighting an AI solution that unlocked the protein folding problem, a critical milestone for advancing treatment development across multiple therapeutic areas.

3. Investor preparedness and strategy shift

A recurring theme at the summit was the need for startups to chart a more self-sufficient path to market. Gone are the days when early-stage companies could predominantly rely on partnerships to scale. Today, startups must have robust strategies to independently advance their assets through key development stages.

Research shows companies spend an average of 8.2 months preparing for financing rounds. This preparation entails developing regulatory strategies, aligning business goals with investor expectations and crafting tailored pitches to demonstrate alignment with potential investor portfolios. Additionally, tools like AI help reduce inefficiencies and identify high-value opportunities faster, making advanced planning essential.

4. Structural challenges facing healthcare investors

While Healthcare continues to be an attractive investment sector, navigating its complexity remains challenging. The summit highlighted Europe’s regulatory burdens as a major obstacle, with panelists advocating for more streamlined frameworks to unlock cross-border investments that foster innovation.

Geopolitical and economic challenges also present risks. Labor shortages are straining impact healthcare delivery service, and supply-chain disruptions can delay critical development timelines. Furthermore, strained U.S.-China biotech relations continue to challenge international collaborations and access to critical resources. Despite these hurdles, presenters noted that investors can mitigate risks through small-scale, strategic M&A deals and portfolio diversification.

5. Actionable insights and strategies for investors

Several strategies emerged as critical for success in healthcare investment:

• Advance ESG-focused initiatives: Metrics such as patient affordability, reach and societal impact are becoming increasingly important in investment decision-making.
• Maximize AI potential: Investors should look beyond traditional healthcare solutions to include AI-driven platforms that enhance drug research and operational capabilities.
• Tailor investment strategies geographically: Opportunities abound in regions like Asia, where eldercare and healthcare services demand is growing exponentially. Asian M&A deal value nearly doubled from USD 11.6 billion in 2022 to USD 24.1 billion in 2023.
• Prepare for due diligence rigorously: Startups must align their pitch materials with investor priorities, whether emphasizing long-term market potential or immediate societal impact.
• Leverage consolidation trends strategically: Add-on M&A deals can be highly effective in driving operational efficiencies and expanding outreach in patient care and service networks.

6. The future of healthcare investment

The discussions at the Capital for Cures Summit highlighted a maturing ecosystem where AI and ESG principles are reshaping the investment landscape.

Emerging markets, technological innovations and patient-centric solutions are opening new doors for startups and investors. However, success increasingly depends on a deep understanding of regulatory and geopolitical complexities. Investors who integrate future-forward technologies, conscious capital and tailored investment strategies will be best positioned to lead in this dynamic market.

The summit not only spotlighted success stories and promising innovations but also emphasized the importance of partnerships, like the collaboration between SS&C Intralinks and Slate Mountain Capital, in fostering breakthrough solutions. By working together, we can help ensure the healthcare sector remains on a path toward sustainable growth and enhanced patient outcomes.