Press release
AI Investment Accounted for Nearly Half of Healthcare Investment in 2025; Silicon Valley Bank Releases 17th Healthcare Investments and Exits Report
AI investment in healthcare exceeded $18B in 2025; Investments grew in healthtech and device sectors SAN FRANCISCO, Jan. 8, 2026 /PRNewswire/ -- Artificial
About this update from First Citizens Bancshares, Inc.
[{"type":"text","content":"AI investment in healthcare exceeded $18B in 2025; Investments grew in healthtech and device sectors SAN FRANCISCO, Jan. 8, 2026 /PRNewswire/ -- Artificial Intelligence (AI) dominated the healthcare investment landscape in 2025 as investments in AI healthcare companies represented 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 $46.8B in 2025, marking a 12% decrease since the previous year.\n \n \n \n \n \n \n \n\"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, a division of First Citizens Bank. \"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.\"Key findings from the 2026 Healthcare Investments and Exits report1 include:AI Investment Soars With more than $18B invested so far, AI now makes up 46% of all healthcare investment.Investments in the healthtech (+5.3%) and device (+1.5%) sectors grew, while biopharma (-19%) and dx/tools (-33%) declined.Healthcare investment totaled $46.8B in 2025, compared to the $68.3B peak in 2021.Venture Capital is Getting Back to BasicsTotal VC deal counts were down 7% in 2025, reflecting a more selective funding environment amid fundraising constraints in the healthcare ecosystem.Healthcare focused VCs raised $7B in new funds in 2025.This is down from the $41B peak in 2021.The Mega Deal Has Been RedefinedIn 2025, there were more healthcare AI deals over $300M than in any other year, surpassing the sector's overall peak investment year in 2021.$300M+ deals 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.Learn MoreTo read the complete Healthc...