Healthcare AI investment soars to record $23Bn in 2024: Silicon Valley Bank
CALIFORNIA, UNITED STATES — Venture Capital (VC) investment in the healthcare sector reached $23 billion in 2024, up from $20 billion the previous year. This growth is fueled by the successful integration of artificial intelligence (AI) in healthcare, particularly in biopharma.
According to Silicon Valley Bank’s 15th Edition of the Healthcare Investments and Exits Report, AI is now a central feature, attracting 30% of the sector’s total investment.
Biopharma AI investment stood out, surging to more than $5 billion in 2024—a 300% increase from 2023. This was driven by a series of mega deals, where transactions exceeding $100 million constituted 71% of the year’s total biopharma AI investment.
2025 investment outlook and market trends
The report, authored by Jackie Spencer, Head of Relationship Management for Life Science and Healthcare Banking at SVB, highlights several key trends.
2024 saw an uptick in #healthcare venture investment and was a banner year for funding to biotech #AI companies.
Read our new report for a full update on the state of the VC-backed healthcare ecosystem.
👉 https://t.co/N8DAvmr7Vo #SVBHealthcare pic.twitter.com/xwPE6jIU6z
— Silicon Valley Bank (@SiliconVlyBank) January 8, 2025
“In 2025, we anticipate a steady yet modest increase in both the volume and value of investments across various healthcare sectors,” Spencer noted.
“However, despite this growth, IPO activity is likely to remain subdued as market conditions continue to stabilize and investors remain cautious. Advancements in AI are poised to revolutionize drug development and clinical trial management, driving efficiencies, precision, and speed in bringing new therapies to market.”
Seed funding shows strong AI focus
The analysis extends to various segments including healthtech, diagnostics/tools (dx/tools), and device sectors in the U.S. Notably, seed rounds accounted for 40% of all deals in 2024, with an increase in AI adoption among seed-funded companies from 25% in 2023 to 35% in 2024.
The enthusiasm is particularly palpable in biopharma, with AI-driven protein design and upcoming results from clinical trials of AI-designed drugs keeping the momentum high.
Silicon Valley Bank serves as a financial institution for innovative companies in technology, life science, healthcare, and venture capital sectors. As part of First Citizens BancShares, Inc., it operates within a larger financial network managing over $200 billion in assets.
