The British Business Bank has strengthened its support for healthcare innovation by committing €25 million to the EQT Health Economics 3 Fund (EQT HE3), a specialist investment vehicle focused on advancing commercial-stage life sciences and medical technology companies.
The investment reflects the bank’s continued strategy of supporting funds that can accelerate innovation in healthcare while helping promising businesses expand their reach.
Fund Targets Commercial-Stage Healthcare Innovation
EQT HE3 is a multi-stage investment fund dedicated to life sciences and medtech businesses that have already reached a more advanced stage of development.
Rather than focusing on early research alone, the fund seeks companies with de-risked technologies that are ready for wider commercialization.
Its investment strategy centers on medical devices, digital health platforms, and other healthcare technologies capable of improving patient care, increasing efficiency, and modernizing healthcare systems.
EQT Life Sciences Builds on Decades of Industry Experience
Headquartered in Stockholm, Sweden, EQT Life Sciences invests across several healthcare sectors, including therapeutics, diagnostics, medical devices, and health technology.
The firm became part of the broader EQT platform in 2022 after the integration of LSP, a European venture capital firm with more than three decades of experience in life sciences investing.
Before joining EQT, LSP raised more than €3 billion (approximately $3.5 billion) and played a role in supporting the growth of over 150 healthcare companies.
That investment history has positioned EQT Life Sciences as one of Europe’s established investors in healthcare innovation.
Existing Partnership Between the Two Organizations
The latest commitment also builds on an existing relationship between the British Business Bank and EQT Life Sciences.
The two organizations have previously participated together in major funding rounds for healthcare companies.
Their joint investments include Phagenesis’ $42 million Series D financing in 2023 and Cyted Health’s $44 million Series B round in 2025, demonstrating an ongoing collaboration in backing businesses developing new medical technologies.
Focus on Scaling Proven Healthcare Technologies
By investing in the EQT Health Economics 3 Fund, the British Business Bank is supporting companies that have progressed beyond the earliest development stages and are preparing to scale commercially.
The fund’s emphasis on validated medtech and digital health solutions is expected to help accelerate the adoption of technologies designed to improve healthcare delivery while addressing growing demand for more efficient medical services.
Investment Reinforces Long-Term Innovation Strategy
The €25 million commitment underscores the British Business Bank’s continued interest in supporting specialist investment managers capable of identifying high-potential healthcare businesses.
Combined with its previous co-investments alongside EQT Life Sciences, the latest funding strengthens a long-term partnership aimed at fostering innovation across the life sciences sector and helping commercially ready healthcare companies reach broader markets.
