Venture capital investment in healthcare increased to $23 billion in 2024, up from $20 billion in 2023, fueled by the rapid adoption of AI technologies, a Jan. 8 report from Silicon Valley Bank found.
AI played a transformative role, particularly in biopharma, where it accounted for 30% of all healthcare investments.
Here are five things to know from the report:
- Biopharma AI investment led the charge, securing over $5 billion in funding—a 300% increase from 2023.
- Seed-stage investments made up 40% of all deals, with 35% of seed-stage companies leveraging AI, up from 25% in 2023.
- Established healthtech companies continued to attract significant funding, while newer startups faced pressure to demonstrate rapid success.
- Liquid biopsies and precision diagnostics emerged as promising areas.
- Hospital-focused innovations, particularly in imaging and monitoring, reinvigorated interest, overshadowing waning enthusiasm for wearables and home care devices.