Investment in Europe’s Healthcare and Life Sciences sector continues to accelerate, with MedTech as one of its most dynamic areas. Growth is being driven by innovation in digital health, AI and advanced diagnostics.
EU initiatives such as the European Health Data Space and Digital Decade have catalysed this progress, with over €16 billion allocated to Life Sciences digitalisation, particularly in MedTech, across member states (European Court of Auditors, 2024).
Market trends and investor sentiment
Despite a dip in deal volume, funding remains robust, with early-stage ventures dominating the landscape and private equity and venture capital activity reaching record highs. Market sentiment suggests that investors are more optimistic about increased deal volumes for the rest of 2025 and going into 2026.
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Subscribe nowRegulatory and compliance challenges
The sector still faces significant legal and commercial challenges. Regulatory reforms under the MDR and IVDR frameworks aim to streamline device approvals and reduce burdens on SMEs, but the transition has been complex. Companies must navigate evolving standards while maintaining compliance and accelerating time-to-market. The integration of digital technologies also raises concerns around data protection and GDPR compliance, requiring strong governance and transparency.
Deal dynamics and strategic focus
Market activity is shifting towards fewer but larger deals, with investors favouring scalable, clinically validated technologies. In Q2 2025, 71% of top-funded MedTech companies were based in Europe (MedTech World, 2025), reflecting growing confidence in the region’s innovation ecosystem. Strategic acquisitions and partnerships are on the rise, particularly in areas like physician support tools and treatment assistance, which are attracting increasing investor interest.
Fieldfisher’s role in MedTech
Fieldfisher is at the forefront of supporting MedTech companies, including Adtec Healthcare, across Europe. We recently advised Adtec Healthcare on a $12 million funding round to expand its Cold Plasma technology globally. Adtec, a pioneer in Cold Plasma medical technology, secured international investment to accelerate global expansion and develop next-generation infection control devices. Fieldfisher’s team provided comprehensive support, managing the complexities of cross-border investment and aligning the transaction with the company’s long-term growth strategy. This deal underscores Fieldfisher’s ability to deliver value beyond traditional legal services, acting as a strategic partner in advancing transformative healthcare technologies.
Fieldfisher’s Healthcare and Life Sciences team provided cross-border legal expertise, helping navigate complex investor landscapes and regulatory requirements. Beyond deal-making, Fieldfisher offers comprehensive legal support across regulatory compliance, intellectual property, and commercial strategy. Our work spans emerging technologies, including AI in MedTech, where we help clients address ethical, legal, and operational challenges. With offices across Europe and a strong network of specialists, Fieldfisher is well-positioned to guide MedTech companies and investors through the evolving legal and market landscape to unlock growth opportunities.
Looking ahead
As Europe cements its role as a global MedTech hub and the industry continues to evolve, investors and innovators alike will need trusted advisors who understand both the science and the law, as well as the commercial landscape. With our proven track record and sector-specific expertise, Fieldfisher remains a key enabler of growth in one of the most dynamic areas of Healthcare and Life Sciences. Our team's strategic insight and guidance remain essential for companies seeking to innovate, expand and thrive in a competitive market.
Article authored by Waheed Aslam, Sector Programme Lead.
