Press release
AI Deal Activity Remains Strong in Healthcare Amid Decline in Fundraising; Silicon Valley Bank Releases 16th Edition of Healthcare Investments and Exits Report
AI and back-office software driving growth; China biopharma licensing on track for record year SAN FRANCISCO, July 29, 2025 /PRNewswire/ -- Despite a decline
About this update from First Citizens Bancshares, Inc.
[{"type":"text","content":"AI and back-office software driving growth; China biopharma licensing on track for record year\nSAN FRANCISCO, July 29, 2025 /PRNewswire/ -- Despite a decline in overall fundraising, which is on track for the lowest amount closed in more than a decade, AI-related deal activity remains a bright spot for the healthcare sector, according to the latest report from Silicon Valley Bank (SVB), a division of First Citizens Bank. Over the last three years, all healthcare sectors saw strong growth in AI deal activity while companies not leveraging AI saw a 20% decrease.\n\n \n \n \n \n \n \n\n \n\"Despite a challenging fundraising environment, we continue to see encouraging signals across the market – particularly in AI investment across all sectors,\" said Jackie Spencer, Head of Relationship Management for Life Science and Healthcare Banking at Silicon Valley Bank and author of the annual Healthcare Investments and Exits Mid -Year Report. \"Healthtech is leading the way, with AI-related deals doubling over the past 12 months. New AI applications are helping to reduce administrative burdens and drive greater efficiency throughout the healthcare system.\"\nSilicon Valley Bank's mid-year 2025 Healthcare Investments and Exits report analyzes and predicts trends for venture capital investing, fundraising, and exits across healthtech, biopharma, diagnostics/tools (dx/tools), and device sectors in the US. The latest edition of the report also includes a spotlight on China.\nChina has established itself as a force in global biotech, with structural advantages in cost, development speed, and regulatory efficiency, according to the report. In the first half of 2025, total spending on Chinese biopharma licensing deals reached $3 billion, already more than what was spent in 2024.\nKey Findings \nAI Spotlight:\nHealthtech stands out: Despite headwinds in the overall market, investors are still spending on healthtech which accounted for about a third of total healthcare investment, with Healthtech AI accounting for 21%.AI tools attract funding: Mid-way through the year, half of all dollars going to dx/tools companies are going to those that leverage AI.Admin tops clinical spend: Back-office applications are taking center stage as AI adoption is focused on reducing administrative burden rather than clinic tasks—accounting for 44% of all AI investment ...