StockNews.AI
FCNCA
StockNews.AI
21 days

AI Deal Activity Remains Strong in Healthcare Amid Decline in Fundraising; Silicon Valley Bank Releases 16th Edition of Healthcare Investments and Exits Report

1. AI deal activity in healthcare grows amid overall fundraising decline. 2. Healthtech is leading AI investments, doubling in the past 12 months. 3. China's biopharma licensing hits $3 billion, surpassing 2024 totals. 4. AI tools attract significant funding, especially in diagnostics and tools. 5. Back-office AI applications account for 44% of H1 2025 investment.

7m saved
Insight
Article

FAQ

Why Bullish?

The report highlights strengths in healthtech, suggesting positive growth for FCNCA's sectors. Historical trends show that strong healthtech performance tends to lift associated financial institutions.

How important is it?

The article emphasizes growth sectors and trends relevant to FCNCA's portfolio focus, making it a critical read. As investors gravitate towards AI healthtech, FCNCA stands to benefit directly from this positive sentiment.

Why Long Term?

While immediate impacts may arise, sustained growth in AI and healthtech suggests longer-term benefits for FCNCA. Analogous periods of tech innovation, such as during the rise of the internet, led to enduring growth in sector-related financial entities.

Related Companies

SVBJNJPFEMDT
AI and back-office software driving growth; China biopharma licensing on track for record year , /PRNewswire/ -- Despite a decline in overall fundraising, which is on track for the lowest amount closed in more than a decade, AI-related deal activity remains a bright spot for the healthcare sector, according to the latest report from Silicon Valley Bank (SVB), a division of First Citizens Bank. Over the last three years, all healthcare sectors saw strong growth in AI deal activity while companies not leveraging AI saw a 20% decrease. "Despite a challenging fundraising environment, we continue to see encouraging signals across the market – particularly in AI investment across all sectors," said Jackie Spencer, Head of Relationship Management for Life Science and Healthcare Banking at Silicon Valley Bank and author of the annual Healthcare Investments and Exits Mid -Year Report. "Healthtech is leading the way, with AI-related deals doubling over the past 12 months. New AI applications are helping to reduce administrative burdens and drive greater efficiency throughout the healthcare system." Silicon Valley Bank's mid-year 2025 Healthcare Investments and Exits report analyzes and predicts trends for venture capital investing, fundraising, and exits across healthtech, biopharma, diagnostics/tools (dx/tools), and device sectors in the US. The latest edition of the report also includes a spotlight on China. China has established itself as a force in global biotech, with structural advantages in cost, development speed, and regulatory efficiency, according to the report. In the first half of 2025, total spending on Chinese biopharma licensing deals reached $3 billion, already more than what was spent in 2024. Key Findings AI Spotlight: Healthtech stands out: Despite headwinds in the overall market, investors are still spending on healthtech which accounted for about a third of total healthcare investment, with Healthtech AI accounting for 21%. AI tools attract funding: Mid-way through the year, half of all dollars going to dx/tools companies are going to those that leverage AI. Admin tops clinical spend: Back-office applications are taking center stage as AI adoption is focused on reducing administrative burden rather than clinic tasks—accounting for 44% of all AI investment in the first half of 2025. Investment by Sector: Biopharma: Late-stage companies show favor; median biopharma pre-money valuations among Series C+ sat at $247M in H1 2025, compared to $46M and $87M for Series A and B biopharma startups, respectively. Healthtech: Healthtech remains strong as the sector raised $8.2 B total dollars during this half, the strongest half since H1 2022. Series B deal size jumped to $40M, the highest over the past five years. Dx/Tools: There are silver linings in a slowing market for early-stage diagnostics and tools companies. While deal activity has slowed since 2024, Series A median pre-money valuations and deal sizes hit a five-year high at $38M and $14M. Medical Device: Device investment proves to be consistent, totaling between $3B and $4B every half since 2022. However, macroeconomic events could cause a veer off course as device companies appear likely to be most impacted by tariffs. Learn MoreFor a preview of the 2025 Healthcare Investments and Exits report, please visit: Healthcare Investments and Exits Report | Silicon Valley Bank To share its deep industry knowledge, Silicon Valley Bank develops various insights reports focused on sectors spanning the innovation economy. For the complete library of Silicon Valley Bank's signature research reports, please visit Market Research Industry Trends & Insights | Silicon Valley Bank (svb.com)  About Silicon Valley BankSilicon 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 SOURCE Silicon Valley Bank WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Related News