NaturalX Health Ventures, the VC arm of German pharmaceutical giant Schwabe Group, has unveiled a new €100m fund to back early-stage consumer health startups in Europe, amid a flurry of big money investments in the sector.
The Berlin-based investment firm revealed details of its first fund on Monday, saying it would focus on Series A rounds, with typical cheques being around €3m-5m. The entire €100m was provided by parent company Schwabe, a 150-year-old conglomerate of health and pharmaceutical companies around the world.
“The consumer health space has been overlooked by investors,” says NaturalX founder Marvin Amberg. “We see an inflection point in Europe now, as consumers are finally taking more charge of their own health.”
VCs are taking notice. In just over six months two new consumer-focused unicorns have been minted in Europe — UK-based femtech Flo and Swedish body scanning startup Neko Health. Prior to 2024, just one European startup, Finnish smart ring maker Oura, had hit a $1bn valuation.
“The pandemic accelerated consumers focus on proactive health management, while rising health literacy — driven by influencers like Andrew Huberman and Bryan Johnson — has created more informed healthcare consumers who see health as a status symbol,” says Amberg.
“Easier access to data through technology, including AI, is further driving the shift toward consumer-centric healthcare.”
The European consumer healthcare market has long been considered a difficult nut to crack for startups, primarily because most people in the region have their healthcare paid for by the state.
There are a number of consumer-focused healthtech successes in the US, including online healthcare providers Ro Health, which hit a $7bn valuation in 2022 and wellness brand Hims, valued at over $5bn today after IPO’ing via a SPAC in 2021.
NaturalX plans to invest in startups across the proactive health space, including sleep, gut health, prevention, and longevity.
About 20% of the fund will be spent backing other funds, with at least a partial focus on consumer health.
NaturalX has already made several startup investments, including probiotics brand Mybacs, depression treatment startup Flow Neuroscience, workplace mental health company Kyan Health and therapy platform Meela.
Read the orginal article: https://sifted.eu/articles/naturalx-consumer-health-fund-news/
