Bildnachweis: MIG Capital, VC Magazin, Pixabay.
The animal health market is booming – and it’s quickly emerging as an attractive
investment opportunity for venture capital firms. Two portfolio companies backed
by MIG Fonds/MIG Capital demonstrate how this trend can be successfully
leveraged in practice.
Just a few years ago, veterinary medicine was considered a conservative niche. Those days are over. The global market for animal pharmaceuticals, diagnostics, and veterinary services is on a strong upward trajectory – driven by emotional bonds between humans and their pets, growing awareness around animal welfare in livestock farming, and significant technological breakthroughs. Over the past decade, the industry has evolved rapidly, creating compelling return opportunities for investors. Consider the following:
- The combined market capitalisation of the ten largest publicly traded animal health companies has nearly tripled – from USD 55 billion in 2013 to USD 143 billion in 2023. At the same time, EBITDA multiples have climbed from 10x to 17x, clearly indicating increased profitability and sector appeal.
- Innovation is the primary growth engine. Roughly 66% of the growth in the companion animal segment is driven by new products, particularly antiparasitics and therapeutics leveraging novel technologies such as monoclonal antibodies (mAbs), gene and cell therapies, CRISPR, and digital health platforms.
- A vibrant start-up ecosystem is taking shape – especially in biotechnology, diagnostics, and digital applications.
- High-profile exits underscore the market potential: Invetx was acquired by Dechra in 2024 for USD 520 million, marking a major milestone for animal health start-ups.
- AI and big data are transforming R&D – from biomarker discovery and early diagnostics to personalised treatment plans for pets.
- Digital tools including wearables, practice management software, and telemedicine platforms are unlocking new business models.
- The increasing presence of private equity and IPOs reflects the sector’s maturity and growing investor confidence. Major US venture capital firms such as Digitalis Ventures, Borealis Ventures, and Anterra Capital have launched dedicated animal health funds.
Two recent MIG Capital/MIG Fonds investments highlight how this megatrend is gaining momentum in Europe.
Biotech tackles parasite resistance
Swiss-based deeptech firm Astra Therapeutics is targeting a critical challenge: drug resistance in parasites affecting pets and livestock. This USD 12 billion global market is under pressure, with older treatments losing efficacy and a growing demand for safe, effective alternatives. Astra’s proprietary platform develops compounds targeting eukaryotic parasites by exploiting structural differences in a key protein found in parasites versus host animals. Built on a decade of research at the Paul Scherrer Institute, it enables highly selective, side-effect-free therapies. Initial focus: heartworm (dogs, cats) and coccidiosis (poultry, swine) – two high-impact, global disease areas. With venture capital support, Astra is accelerating preclinical work and preparing partnerships with global players.
Next-gen imaging for veterinary care
HawkCell, a Medtech start-up from Lyon founded in 2019, is transforming imaging diagnostics in veterinary medicine – especially MRI and CT. While standard in human healthcare, advanced imaging has long been too complex and costly for widespread animal use. HawkCell delivers a fully integrated system: custom-designed tables fit animal anatomy, and embedded coils improve signal quality and speed. A pilot with a major MRI producer in late 2024 confirmed the system’s efficiency and animal-friendliness. HawkCell also built an AI-powered analysis tool trained on millions of MRI and CT images to support diagnosis by vets and teleradiologists. The benefits are clear: shorter anaesthesia, faster and better imaging, quicker diagnosis. Most clinics see ROI within six months. For investors, HawkCell is a textbook deeptech story – hardware-software integration, platform potential, and measurable value for users.
Why venture capital in animal health makes sense
These two case studies illustrate why animal health is no longer a niche market from a venture capital perspective. It combines several highly attractive investment characteristics. Emotional bonds between pet owners and their animals translate to high willingness to pay. In livestock, tighter regulation and efficiency pressures are driving the adoption of solutions focused on animal health and welfare. Together, these factors enable scalable business models built on advanced technologies. Animal health start-ups also offer strong potential for international expansion – particularly in North America and Asia. In short, investing in animal health is investing in quality of life, animal welfare, and scientific innovation. Start-ups like Astra Therapeutics and HawkCell are part of a new generation of life science companies that combine cutting-edge technology with clear market demand and ethical impact. This trend is still young – but it’s here to stay.
About the author:
Andreas Kastenbauer is a Partner at MIG Capital and part of the firm’s life sciences team. He specialises among other things in veterinary health start-ups and oversees the two companies featured above.
