13.1 C
Manchester
Monday, September 15, 2025
FinanceMerck Global Health Innovation Fund Unveils Expert Recommendations for Overcoming Funding Obstacles...

Merck Global Health Innovation Fund Unveils Expert Recommendations for Overcoming Funding Obstacles in the Digital Health Industry

Securing investment has become an uphill battle for privately held digital health companies amidst challenging conditions. Nevertheless, Merck Global Health Innovation Fund President, Bill Taranto, delivered a ray of hope to entrepreneurs at the prestigious Global Global Corporate Venturing Symposium. Taranto outlined five strategic actions that, if followed, can greatly enhance the chances of success for companies seeking funding in this demanding landscape.

In the first quarter of 2023, 10% of all corporate venture capital rounds raised by Europe-based companies were down rounds, which is the highest percentage since 2020, PitchBook data unveiled by Mr. Taranto showed. Over the same period, Europe-based companies raised $10.4 billion, which is far below the $29.5 billion raised in the first quarter of 2022 and the $22.3 billion raised in Q1 of 2021, according to an analysis by CB Insights.

“European startups in digital health and other sectors are navigating difficult times, but there are plenty of reasons to be optimistic, especially if you are a company that is willing to rewrite your playbook,” Mr. Taranto said. “Now is the time to deeply think about your strategy for this environment,” he added.
Companies with less than two years of cash on hand can increase their chances of weathering the current market turbulence, and can raise additional funding, by pursuing the following five courses of action:
1)    Start with an Honest Appraisal of Where You Are. Companies must begin assessing in detail how every dollar spent helps to build shareholder value.
2)    Get the Company in Fighting Shape. High-burn and long runways are not a winning approach in economic downturns. Limit spending to what helps the company reach important value inflection points.
3)    Align Your Syndicate. Understand the interests of your existing investors and approach them early. Be clear about who has money to invest, who holds the power to make decisions and who is willing to invest today.
4)    Consider all alternatives. Dilution won’t not kill a company, but running out of cash will. Raising a down round could ultimately help your company survive.
5)    Embark with optimism. Market downturns have a way of weeding out inferior business plans and making strong companies stronger. Do whatever it takes to get stronger.
“Digital health still has a bright future ahead, and so do companies that follow these five courses of action,” explained Taranto.  “Healthcare systems worldwide still need to expand access to care, improve capacity, lower costs, and improve health outcomes for patients. Digital health innovations are the way to accomplish these goals, and help us set even more ambitious new ones,” he added.
News Desk
News Deskhttps://www.businessmanchester.co.uk/
The Business Manchester News Desk team is a collective of experienced journalists and editors dedicated to delivering comprehensive business news and insights from the Manchester area and beyond. With a strong background in finance, technology, property, and innovation, our team ensures that our readers stay well-informed about the latest trends and developments in the business world. Through in-depth reports and insightful analysis, the Business Manchester News Desk team is committed to providing high-quality journalism to its audience.
Latest

Choosing reliable vehicle financing for families in Manchester

When it comes to securing vehicle financing for your family, reliability is essential. Families need to consider the long-term impact of their financial decisions,...

Appy Pie Unveils Snappy 2.5: A Faster, Smarter Website Builder Designed Around User Feedback

Appy Pie has introduced Snappy 2.5, the latest upgrade to its website builder, developed in direct response to long-standing user feedback. This release focuses...

FREESMO Leads the Way with Smarter Smoke-Free Choices Through Trusted Questionnaire

As the smoke-free sector continues to grow and diversify, FREESMO is highlighting the importance of its Smoke-Free Questionnaire – a tried and tested tool...

Growing green: Smart strategies for sustainable business growth

In today’s competitive landscape, growth isn’t just about scaling quickly, it’s about doing so responsibly. Customers, investors, and even employees are increasingly drawn to businesses...
Subscribe to our newsletter
Business Manchester will use the information you provide on this form to be in touch with you and to provide updates and marketing.
Don't miss

£1 million health optimisation hub opens near Manchester Airport this month with exclusive treatments from £45

A new £1m high-tech clinic is set to open at Manchester Green on September 18, bringing treatments more often associated with London’s private wellness...

FREESMO Leads the Way with Smarter Smoke-Free Choices Through Trusted Questionnaire

As the smoke-free sector continues to grow and diversify, FREESMO is highlighting the importance of its Smoke-Free Questionnaire – a tried and tested tool...

Growing green: Smart strategies for sustainable business growth

In today’s competitive landscape, growth isn’t just about scaling quickly, it’s about doing so responsibly. Customers, investors, and even employees are increasingly drawn to businesses...

Appy Pie Unveils Snappy 2.5: A Faster, Smarter Website Builder Designed Around User Feedback

Appy Pie has introduced Snappy 2.5, the latest upgrade to its website builder, developed in direct response to long-standing user feedback. This release focuses...

More News

Choosing reliable vehicle financing for families in Manchester

When it comes to securing vehicle financing for your family, reliability is essential. Families need to consider the long-term impact of their financial decisions,...

Why more UK homeowners are delaying their next move

The UK housing market has entered an unprecedented period of stagnation, with transaction volumes plummeting to levels not seen since the financial crisis of...

Evlo and Moneyline Collaboration Offers Lifeline to Financially Vulnerable Borrowers

UK consumer lender Evlo has confirmed a strategic partnership with Moneyline to improve access to affordable finance for non-prime applicants, particularly during periods of...