Biomedical funding recovery favors fewer startups, Sustainable Impact Capital says
XLV•Global biomedical investment showed signs of recovery in 2026, but funding went to fewer companies without an increase in deal counts. Sustainable Impact Capital said commercial viability, cash flow, fundraising capacity and credible exits remain key investment criteria.
1. Funding and investment criteria
Global biomedical investment showed signs of recovery in 2026, but funding concentrated in fewer companies without a corresponding rise in deal counts. Sustainable Impact Capital said AI is becoming standard across digital health, shifting competitive advantage toward clinical workflow integration and solutions addressing unmet care needs. It said commercial viability depends on reimbursement, willingness to pay and addressable markets, while cash flow, fundraising capacity and credible exits remain decisive criteria.
