The British Business Bank has committed €25 million to EQT Life Sciences’ EQT Health Economics 3 Fund, supporting investment in commercial-stage medical technology and digital health companies.
EQT Health Economics 3, also known as EQT HE3, is a multi-stage life sciences fund focused on technologies intended to improve healthcare delivery, patient outcomes and the economic efficiency of health systems.
The fund will primarily target de-risked medical technology and digital health companies that have progressed beyond the earliest stages of product development and are moving toward commercialization or broader market adoption.
The commitment forms part of the British Business Bank’s strategy of investing in venture and growth capital funds that can provide financing to high-potential British companies.
Although the Bank regularly supports funds managed elsewhere in Europe, these commitments are structured to encourage additional investment in companies based in the United Kingdom.
Life sciences is one of the eight priority growth sectors identified in the UK Industrial Strategy. The British Business Bank is seeking to help domestic companies access the long-term capital required to conduct research, complete clinical and regulatory work, expand commercially and remain headquartered in the country.
Medical technology companies can require significant funding before reaching profitability. Businesses may need to finance product development, clinical validation, regulatory approvals, manufacturing capabilities and commercial teams before their technologies can be widely adopted.
Digital health companies face related challenges involving clinical evidence, data protection, healthcare system integration and reimbursement.
By backing a specialist fund, the British Business Bank can provide capital through an investment team with experience evaluating these technical, regulatory and commercial risks.
EQT Life Sciences invests in therapeutics, medical devices, diagnostics and health technology companies. The organization has a 30-year investment track record and has raised more than €3.7 billion across 13 private funds.
It has supported more than 150 companies, from early clinical development through commercialization.
EQT Life Sciences was formed in 2022 following the integration of European healthcare venture capital firm LSP into EQT.
The investment team includes professionals with experience across medicine, science, business and finance, enabling it to evaluate companies from both scientific and commercial perspectives.
EQT HE3’s focus on de-risked technologies means it is expected to target businesses that have already reduced some of the scientific, product or regulatory uncertainty associated with earlier-stage healthcare investments.
These companies may still require capital to expand sales, enter new markets, complete product launches or increase manufacturing capacity.
The fund’s health economics strategy is centered on companies capable of improving healthcare outcomes while reducing costs or allowing medical resources to be used more effectively.
Potential areas of investment could include technologies that improve diagnosis, shorten hospital stays, reduce complications, automate clinical processes or allow care to be provided in less costly settings.
The British Business Bank already has an established relationship with EQT Life Sciences through previous investments in healthcare companies.
The organizations participated in Phagenesis’ $42 million Series D financing in 2023. Phagenesis develops treatments for swallowing difficulties.
They also invested in Cyted Health’s $44 million Series B round in 2025. Cyted Health develops diagnostic technology intended to support earlier detection of diseases affecting the upper gastrointestinal tract.
The €25 million commitment to EQT HE3 expands this relationship from individual company investments to participation in a broader specialist fund.
The arrangement could help more UK life sciences companies access EQT Life Sciences’ capital, sector knowledge and international network.
The British Business Bank is the UK government’s economic development bank and was established in 2014.
Its mission is to support economic growth by helping smaller companies obtain the financing required to start, scale and remain in the UK.
The Bank’s core programs currently support approximately £23 billion of financing for nearly 64,000 smaller businesses.
By committing capital to EQT HE3, the British Business Bank aims to strengthen the funding environment for medical technology and digital health companies while supporting the broader commercialization of healthcare innovation.
