AI drives boost in healthcare venture capital: Report

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. 

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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:

  1. Biopharma AI investment led the charge, securing over $5 billion in funding—a 300% increase from 2023.
  2. Seed-stage investments made up 40% of all deals, with 35% of seed-stage companies leveraging AI, up from 25% in 2023.
  3. Established healthtech companies continued to attract significant funding, while newer startups faced pressure to demonstrate rapid success.
  4. Liquid biopsies and precision diagnostics emerged as promising areas.
  5. Hospital-focused innovations, particularly in imaging and monitoring, reinvigorated interest, overshadowing waning enthusiasm for wearables and home care devices.
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