This VC says $10bn in the federal budget for health and aged care is a sign that government’s not the solution for innovation in a sector that’s slow to change

- May 21, 2024 2 MIN READ
Operation, AI, doctors
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I am pleased to see the Australian government’s new budget allocates a $23 billion package for renewable energy innovation and development and $10.7bn to health and aged care.

These investments are significant, but they also highlight a critical need for a shift in policy towards investments in proactive and preventive measures in healthcare.

As the CEO of Dreamoro Ventures, I believe the budget package seeks to address the growing size of the problem, which unfortunately just gets bigger and bigger each year.

Unfortunately, it misses the opportunity to fund solutions that address the issues at their source. The industry remains reactive to symptoms and does little to focus on early intervention and preventive care innovations.

Startup Daily captured the budget’s essence perfectly in the article: “Here are all the Budget announcements supporting Australia’s startup sector” on May 14. Its concise summary: “Thanks for reading. See you next year.”  This seven-word article, paired with a 10-word title, underscores a sentiment felt by many in the startup community.

While debates on climate change and other global challenges continue, there is unanimous agreement among governments, health insurers, hospitals, and practitioners worldwide about the impending crisis in healthcare due to our aging population and chronic diseases.

With the likelihood that we will soon live to 100 or more, the pressure on healthcare systems will become unsustainable, potentially causing a catastrophic impact on our economies within the next decade.

Healthcare may be the only industry left on earth that hasn’t fundamentally changed in a century. Let me pause here for a moment and just let that sink in, yep, a century!

In contrast, nearly every other industry has undergone significant transformation over the decades. This represents one of the greatest global opportunities for innovation and investment.

Australia’s vibrant startup ecosystem, supported by venture capital and other investors, is poised to lead in this transformation.

The recent Digital Health Festival in Melbourne showcased 140 digital health tech startups and over 200 mature health tech businesses, reflecting the sector’s potential.

At Dreamoro Ventures, we are closing Australia’s first dedicated digital health tech ESVCLP venture capital fund. Australia has demonstrated internationally that it can produce truly amazing leading global technology companies.

As an experienced founder-led VC focused in one of the top three most impactful sectors in the world, HealthTech, I hope that all governments and investors appreciate the scale of the opportunity ahead and welcome investors and supporters into our fund.

  • Klaus Bartosch is the CEO of Dreamoro Ventures, a VC that invests in transformative technologies that address critical challenges in healthcare.