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

Silicon Valley Bank (First Citizens Bank division) released its 2026 Healthcare Investments and Exits report showing $46.8B in healthcare investment in 2025, down 12% year-over-year.

Rhea-AI Summary

Silicon Valley Bank (First Citizens Bank division) released its 2026 Healthcare Investments and Exits report showing $46.8B in healthcare investment in 2025, down 12% year-over-year. AI dominated funding, with more than $18B invested and accounting for 46% of total healthcare investment. Sector trends include growth in healthtech +5.3% and devices +1.5%, while biopharma -19% and dx/tools -33% declined. VC deal counts fell 7% and healthcare-focused VCs raised $7B in 2025 versus a $41B peak in 2021. Large AI rounds were prominent: deals >$300M made up 40% of healthcare AI spending in 2025.

Positive

• AI funding reached $18B, comprising 46% of healthcare investment
• Healthtech investment grew +5.3% in 2025
• Devices investment increased +1.5%
• >$300M AI deals accounted for 40% of healthcare AI spending

Negative

• Total healthcare investment declined 12% to $46.8B in 2025
• Biopharma investment fell 19% year-over-year
• Diagnostics/tools investment dropped 33%
• VC deal counts decreased 7% amid tighter fundraising
• Healthcare-focused VCs raised only $7B in 2025 versus a $41B peak in 2021

Argus Jan 8 session

+0.54% close to close Open Argus

Details

News Market Reaction – FCNCA

On Jan 8, the day this news came out, FCNCA closed 0.54% above the previous close.

Data tracked by StockTitan Argus for the Jan 8 session.

Key Figures

AI healthcare investment: $18B+ AI share of spend: 46% Total healthcare investment: $46.8B +5 more

AI healthcare investment

$18B+

AI investment in healthcare in 2025

AI share of spend

46%

Share of total 2025 healthcare investment going to AI companies

Total healthcare investment

$46.8B

Overall healthcare sector investment in 2025 (down 12% YoY)

Healthtech growth

5.3%

Investment growth in healthtech sector in 2025

Biopharma decline

-19%

Change in biopharma investment in 2025

VC deal count change

-7%

Change in total healthcare VC deal counts in 2025

Healthcare VC funds raised

$7B

Healthcare-focused VCs raised in 2025

$300M+ AI deals share

40%

Share of total healthcare AI spending from $300M+ deals in 2025

Historical Context

5 past events · Latest: Dec 30

5 events

1. Dec 30

   Earnings call timing

   24h Move

   -0.7%

   Announced date and access details for Q4 2025 earnings call.

2. Dec 17

   Client financing deal

   24h Move

   +0.9%

   Financing package including $40M equipment facility with First Citizens.

3. Dec 16

   Syndicated revolver

   24h Move

   +0.8%

   First Citizens led $80M revolver to support solar and storage projects.

4. Dec 04

   Consumer survey

   24h Move

   +1.1%

   CIT Bank survey on 2026 resolutions and related spending plans.

5. Nov 20

   Leadership appointment

   24h Move

   -0.4%

   Named new middle market banking leader for Northeast expansion.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

artificial intelligence, healthtech, generative, agentic ai

4 terms

artificial intelligence technical

"Artificial Intelligence (AI) dominated the healthcare investment landscape in 2025"

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

healthtech technical

"Investments in the healthtech (+5.3%) and device (+1.5%) sectors grew"

Healthtech refers to companies that apply technology—such as software, sensors, telemedicine and artificial intelligence—to deliver, manage or analyze healthcare services and data, much like how banking apps digitized finance but for medical care. Investors care because healthtech can scale quickly, cut costs, create predictable revenue and unlock new markets, while also carrying specific risks from regulation, data privacy and the need for clinical validation that can affect returns.

generative technical

"significant capital requirements of generative and agentic AI solutions"

Generative describes technology or systems that create new content, designs, data or outputs by learning patterns from existing examples — for instance generating text, images, code, or synthetic data. It matters to investors because generative tools can enable new products, reduce costs, speed innovation and disrupt business models, while also bringing risks such as quality errors, misuse and regulatory scrutiny; think of it as a machine that mixes known ingredients to produce novel recipes.

agentic ai technical

"significant capital requirements of generative and agentic AI solutions"

Agentic AI refers to computer systems that can make their own decisions and take actions without needing someone to tell them what to do each time. It's like giving a robot a degree of independence to solve problems or achieve goals on its own, which matters because it could change how we work and interact with technology in everyday life.

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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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Silicon Valley Bank report that healthcare investment totaled in 2025 (FCNCA)?

$46.8B in total healthcare investment in 2025, a 12% decline from the prior year.

What share of 2025 healthcare investment was in AI according to the report for FCNCA?

AI made up 46% of healthcare investment in 2025, with more than $18B deployed.

Which healthcare sub-sectors grew or declined in 2025 per the FCNCA report?

Healthtech grew +5.3% and devices +1.5%, while biopharma fell 19% and dx/tools fell 33%.

How did venture capital fundraising for healthcare-focused VCs change in 2025 in the FCNCA report?

Healthcare-focused VCs raised $7B in 2025, down sharply from a $41B peak in 2021.

What does the report say about large AI deals in healthcare for 2025 (FCNCA)?

Deals over $300M were more numerous in 2025 than prior years and accounted for 40% of healthcare AI spending.