Despite overall declines, investors showed a continued strong interest in AI last year: report
While M&A and VC deal counts were down overall, a Silicon Valley Bank report shows promise, particularly for megadeals.
• less than 3 min read
Nicole Ortiz is the editor of Healthcare Brew where she occasionally writes about sustainability, climate change, and health equity.
Did you know that healthcare leaders are really, really interested in AI?
Well, in case you needed more proof, yet another study is out to show just how valuable they find the tech.
The latest Silicon Valley Bank (SVB) report showed investments in AI made up almost half of all healthcare spending in 2025, totaling more than $18 billion in US and European venture capital (VC) investments. Health tech and devices saw the most interest.
That’s not to say investment in health tech overall has been particularly hot in the last year, though. SVB also found the number of healthcare VC deals was down 7% at $7 billion and overall investment dropped 12% YoY at $46.8 billion, despite projections in early January 2025 that it would be a strong year for deals. This is also in line with what healthcare consultancy Kaufman Hall found: Hospital and health system M&A dropped in 2025.
But it’s not like nothing happened in 2025, either—it was still a year full of deals, with AI (of course) attracting plenty of investor interest and reshaping “the definition of a megadeal,” Megan Scheffel, head of life science and healthcare at SVB, told us via email. According to SVB, the majority of the investments seen were going to AI startups in particular.
Pickier, choosier. “2025 indicated a more selective and disciplined capital environment within the healthcare sector,” Scheffel said. “In a risk-averse environment, diligence on healthcare startups is high, and VC investors are looking for management teams and founders to be further along in their science and evidence.”
There was a bright spot in the report, she noted. Though deal volume dropped, the quality went up, she said, as Series A rounds were held to a higher standard than previous years, with investors seeming to expect stronger research and science before they provide funding.
As for where the SVB experts are looking in the future? Scheffel pointed to longevity, which is already seeing “an interesting convergence.”
“Tangible and proven success will be crucial for both founders and investors as measurable outcomes outweigh AI hype cycles,” she said.
Navigate the healthcare industry
Healthcare Brew covers pharmaceutical developments, health startups, the latest tech, and how it impacts hospitals and providers to keep administrators and providers informed.
Navigate the healthcare industry
Healthcare Brew covers pharmaceutical developments, health startups, the latest tech, and how it impacts hospitals and providers to keep administrators and providers informed.