Report: AI Dominates Healthcare Investment in 2025

Investments in AI-focused healthcare companies dwarfed other types of investments in 2025, representing 46% of total spending, according to the latest report from Silicon Valley Bank, a division of First Citizens Bank. 

While AI generated significant investment, the report found that overall investment in the healthcare sector was $46.8 billion in 2025, marking a 12% decrease from the previous year.

The report found that total venture capital deal counts were down 7% in 2025, reflecting a more selective funding environment amid fundraising constraints in the healthcare ecosystem. Healthcare-focused VCs raised $7 billion in new funds in 2025, down from the $41 billion peak in 2021.

The report found that in 2025, there were more healthcare AI deals over $300 million than in any other year, surpassing the sector's overall peak investment year in 2021.

These deals of more than $300 million accounted for 40% of total healthcare AI spending in 2025. Deals of this size represented 29% of total healthcare AI deals in 2023 and 31% of total healthcare AI deals in 2024.

The majority of these deals are going to AI startups, given the significant capital requirements of generative and agentic AI solutions.

Silicon Valley Bank noted that “longevity and healthspan tech saw a massive increase in healthcare investment in 2025, but it was driven by just three startup company deals. If you exclude the outliers, the boost disappears.”

"Healthcare venture fundraising has entered a reset," said Megan Scheffel, co-author of the report and Head of Life Science and Healthcare at Silicon Valley Bank, in a statement. "First-time and emerging managers face longer fundraising cycles, while founders are seeing earlier capital go toward companies with clinical validation, revenue traction, or capital-efficient business models. Large, generalist VC firms with dedicated healthcare arms continue to raise, but overall fundraising indicates a more concentrated healthcare VC ecosystem.”