Catalonia's Robust Medtech Ecosystem

Barcelona is rapidly emerging as a significant hub for medtech, digital health, and biotech innovation. Josep Sanfeliu, managing partner at Asabys, highlighted the region's robust infrastructure and research capabilities, underscoring its growth potential. "Barcelona is a good place to be—20 University Hospitals and 40 research centers," he noted. This robust foundation makes Barcelona a promising geography for both medical device investors and innovators developing in the medtech market alike.

Launch of We Venture Capital

We Venture Capital, the corporate venture capital arm of Werfen, was recently launched to support innovation in diagnostics. Louise Warme, leading the initiative, shared insights about Werfen's growth and their new venture arm's objectives. She explained, "Werfen has been a family-owned company since being founded in the 60s. They grew for a long time through acquisitions and had the philosophy of letting companies grow under their own brand—until two years ago when we branded everything under Werfen. By doing so, we were probably the best-kept secret in diagnostics." This venture focuses on investing in diagnostic startups, as well as digital solutions and biotechnology surrounding the diagnostic space.

Teladoc Health's International Expansion

Teladoc Health has made significant strides in expanding its global presence, with its international headquarters in Barcelona. Carlos Nueno, President for International at Teladoc Health, discussed the company's services and their impact on the telehealth market. He mentioned, "Teladoc decided to start here in Barcelona back in 2018 through an acquisition of Advanced Medical, which I am a co-founder of.” Teladoc's expansion reflects the city's strategic importance and potential as a global hub for medtech innovation.

Addressing Challenges in Scaling Startups

Despite a strong ecosystem, startups in Barcelona face challenges in scaling and achieving significant market penetration. Josep Sanfeliu and Louise Warme discussed hurdles related to tech transfer and early-stage financing. "Tech transfer offices are not easy to deal with, which may discourage entrepreneurs seeking licenses to start something new—especially when early-stage financing is lacking,” Sanfeliu stated. Warme added, "The most difficult transfer to do is usually from research into companies." Addressing these challenges is crucial for the sustained growth of the medtech market.

Importance of International Perspective

Adopting a global mindset is crucial for Barcelona medtech companies to succeed. Carlos Nueno emphasized the need for companies to look beyond local markets to grow internationally. "You need a certain mindset to become a global leader. If you are not in the US or China, you probably can’t be a global leader. It requires that mentality," he asserted. He added, “As Europeans, we need to continue to work to make things easier in all centers to ensure the market here is attractive enough so companies can become leaders.” Embracing this perspective can help companies in Barcelona scale and compete on a global stage.

Creating a Supportive Ecosystem

Building a supportive ecosystem requires alignment between government, academia, and industry. Shobha Parthasarathi highlighted the importance of providing early-stage funding and fostering collaboration. "At least the first million or two that a startup needs before investors like us would come in needs to be provided locally because that's the hardest thing to come by, and that’s where you’ll have the most impact," she emphasized. This collaborative approach is essential for nurturing innovation and ensuring the long-term viability of startups in the medtech sector.

Explore More

The full recording of the panel can be found in LSI’s resources hub at the link below:

• Corporate and VC Investments in Emerging Ecosystems: the Good, the Bad, and the Potential Exuberance of Barcelona | LSI Europe '23

The medtech conference in Barcelona underscored the city's potential to become a leading hub for innovation in the sector. With the support of corporate ventures like We Venture Capital, global leaders like Teladoc Health, and a strong focus on fostering a supportive ecosystem, Barcelona is well-positioned to drive growth in the medtech market. Addressing the challenges in scaling startups and adopting a global perspective will be vital to unlocking this potential and achieving sustained success.