News

COVID-19-related-expenses slow down health insurance companies´ willigness to invest in start-ups

Health insurance companies can invest significantly less in start-ups | Article in Handelsblatt with Dr. Katharina Ladewig, Managing Director of EIT Health Germany (November 2020)

Since the Digital Supply Act came into force on the 19th of December 2020, health insurance companies have been able to invest up to two percent of their financial reserves in start-ups. However, the investment outlook is clouded by the additional costs incurred by COVID-19. The German government expects additional costs of 16 billion euros for 2021, in which the health insurance companies will also have to contribute almost half of this sum from their reserves. The industry experts behind initiatives such as the “Bridgeheads Leonardo Invest” health insurance fund (Berliner Beteiligungsgesellschaft) and the Venture Centre of Excellence (VCoE) European life science investment platform (European Investment Fund and EIT Health) for collaboration and investment participation between venture capitalists and health start-ups are also noticing a decreasing willingness to invest from the health insurance companies.

Read the complete article here (German only)