# Global healthtech and medtech investment trends > Live situation record from CLSTR: https://clstr.news/situations/global-healthtech-and-medtech-investment-trends > Updated: 2026-09-28T12:38:12.000Z. Sources: 4. Developments: 2. The healthtech and medtech sectors are experiencing a period of renewed investment and market maturity. Early indicators in 2026 show a shift toward prioritizing companies with positive free cash flow, high gross margins, and clinical validation. In the United States, digital health startups raised $4 billion in the first quarter of 2026, with significant private funding rounds supporting value-based care models and acquisitions. As the sector progresses, the focus in Europe has expanded toward increased mergers and acquisitions (M&A) and institutional investment. Driven by the European Health Data Space (EHDS) regulatory framework and the need to address aging populations, the market is moving toward larger, sponsor-led deals. Major transactions involve the integration of AI and data capabilities, while institutional investors, such as PGGM Investment Management in the Netherlands, are committing significant long-term capital to digital applications and medical technology. ## Timeline ### 2026-09-28: European HealthTech sees rising M&A and institutional investment European HealthTech is seeing a rise in M&A activity and institutional investment, driven by AI integration, regulatory shifts like the EHDS, and the need to address aging population demands. 2 sources. https://clstr.news/cluster/european-healthtech-sees-rising-ma-and-institutional-investment ### 2026-09-02: Healthtech and Medtech sectors see renewed investment and IPO outlook Healthtech investment is rebounding as the sector matures, marked by a reopening European IPO outlook and significant private funding rounds, including a $116 million Series E for Cityblock Health. 3 sources. https://clstr.news/cluster/healthtech-and-medtech-sectors-see-renewed-investment-and-ipo-outlook --- Cite as: Global healthtech and medtech investment trends. CLSTR, https://clstr.news/situations/global-healthtech-and-medtech-investment-trends