AI Investment Accounted for Nearly Half of Healthcare Investment in 2025; Silicon Valley Bank Releases 17th Healthcare Investments and Exits Report

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 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.

"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 Basics

• Total 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 Redefined

• In 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 More
To read the complete Healthcare Investments and Exits report, click here: Healthcare Investments and Exits | Silicon Valley Bank (svb.com).

To share its deep industry knowledge, Silicon Valley Bank develops various insights reports focused on sectors spanning the innovation economy. This is SVB's first market report in 2026 after publishing 20 new market reports in 2025. For the complete library of SVB's signature reports, please visit Market Research Industry Trends & Insights | Silicon Valley Bank (svb.com).

About Silicon Valley Bank
Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world's most innovative companies and investors. SVB provides commercial banking to companies in the technology, life science and healthcare, private equity and venture capital industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights and connections. SVB's parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA ), is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Learn more at svb.com

¹ Refer to full report for data sources and timeframes

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SOURCE Silicon Valley Bank