Shares in healthtech company CloudTag were suspended late last week after their share price more than doubled, ahead of a major announcement later this week. The company said that a notification would be made “in due course”, but have said in statements on their website that it would involve the unveiling of a new brand name this month.
However, Cloudtag (LON:CTAG) are just one of the many heathtech companies soaring at the moment, as investors clamour to take a slice of one of the fastest-growing start-up markets.
Healthtech start-ups have seen a 200 percent growth in venture capital funding since 2010, with the latest tech companies shaping the future of the health industry. Last year, investors pumped between $4.25 billion and $6.5 billion into digital health startups, with New York City attracting the most investment.
It remains unclear, however, whether healthtech start-ups are a good investment. Wearable technology brand FitBit (NYSE:FIT) floated on the stock market in June of last year to great acclaim, with its share price soaring 20 percent within 24 hours of trading. Since then, however, its price has sunk steadily, currently trading at $7.65 – a huge decrease on its IPO price of $20.
Harsha Murthy, a managing partner at Consummate Capital, confirmed the disappointing investor potential: “Most health care technology funds underperform the market, with single-digit or negative growth”, adding that it was important to do heavy research before investing in heathtech.
Healthtech companies have also flooded crowdfunding platforms, with UK sites such as Crowdcube and Seedrs currently offering several healthtech campaigns.
Run An Empire is a running app, designed to make exercising less monotonous. It is a Free-to-Play territory control game for runners, joggers and walkers, played in the real world, where players compete against friends and neighbours to build the greatest empire of all time, conquering new lands by encircling them more than their opponents.
They are currently looking for an investment of £280,000 on Crowdcube, and have already raised 21 percent of their target with 7 days left to go.