Telemedicine Trending in German Start-Up Ecosystem
Venture capital funding rose across the board in 2021, but one of the sectors where it was most prominent is telemedicine. Funds for telemedicine firms around the world reached USD 1.4 billion, double the amount raised in 2020.
German start-ups have also profited from the trend and the initial effects of the 2019 Digital Healthcare Act, which liberalized the market. So it’s not surprising that Berlin dermatology healthtech Formel Skin set a new series A sector record, raising EUR 30 billion.
The company offers a digital platform for remotely treating skin conditions, like acne, rosacea and melasma. It says it is closing a gap in treatment in Germany.
“The reason why doctors [in Germany] don’t spend that much time with patients is that you get reimbursed around EUR 12 per publicly insured patient with a chronic skin condition,” That’s not very attractive from a financial perspective,” Formel Skin co-founder Dr. Sarah Bechstein told online business magazine Sifted.
Founded in 2019, Formel Skin is growing at an annual rate of 700 percent, making it one of the fastest-growing healthtech companies in Europe. Germany is Europe’s largest healthcare market. Interest in telemedicine had risen dramatically in many countries during the coronavirus pandemic, as many people are anxious about physical visits to doctors’ offices.