Silicon Valley Bank (SVB), now part of First Citizens Bank, has released a report analyzing healthcare investments in the US and EU for 2025, revealing a challenging year marked by a decline in total investment and a shift in funding dynamics. Total healthcare investment in the US and EU reached $46.8 billion, a decrease of 12% from 2024’s $53.2 billion. European investments remained stagnant, while the 2025 figure still surpassed the low of $41.6 billion recorded in 2023. However, when adjusted for inflation, the 2025 total falls short of the inflation-adjusted 2023 value of approximately $48 billion, according to the Bureau of Labor Statistics using the Consumer Price Index.
The report highlights a decline in the number of deals, which fell 7% in 2025 to an estimated 2,517 from 2,704 in 2024. Investments focused heavily on artificial intelligence (AI), as the sector accounted for $22 billion, or 46% of total healthcare funding across four main categories: Biopharma, Healthtech, Diagnostics/Tools, and Devices. Among these, Healthtech emerged as the second-largest sector, with investments rising from $13.2 billion in 2024 to $13.9 billion in 2025, with SVB tracking deals above $2 million.
The investment landscape resembled a canyon, with robust funding in Series A rounds but a significant drop in Series B and C rounds, which SVB referred to as the “have-nots.” Meanwhile, mega-deals in AI have redefined thresholds, with significant investments now categorized as those exceeding $300 million, reflecting the substantial capital required for AI ventures. Investors are increasingly discerning, preferring companies with short-term scalability, robust fundamentals, and defensible market positions, a trend exacerbated by a shrinking pool of available venture capital.
In terms of mergers and acquisitions, Healthtech saw a mere seven private M&As and three initial public offerings (IPOs), including Hinge Health and Omada in the US, and 66nao Brain Training in China. This represents a decline from 14 M&As and two IPOs in 2024. Additionally, investor capital raised plummeted to a decade low of $7 billion, compared to $23 billion in 2024. Notably, firms like Venrock and General Catalyst have still managed to close $100 million healthcare funds, indicating a continued focus on investments that prioritize scale and monetization over mere potential.
A key emphasis of SVB’s report is the burgeoning sector of Longevity and Healthspan, which has gained recognition and investment focus, growing 2.3 times in 2025. This sector is further subdivided into three areas: Geroscience, focusing on reversing or mitigating aging processes; Consumer Healthspan, which develops products that help users analyze their behaviors to maintain health; and Intrinsic Capacity Healthtech, which provides tools and applications to extend everyday functional abilities. Notable companies in these areas include NewLimit, Altos, Cambrian, Function, Viome, Neuralink, and Hinge Health.
Looking ahead, initial indications suggest a more optimistic outlook for 2026, with continued investment in AI and potential consolidation within the industry. As the healthcare landscape evolves, the focus on tangible outcomes and defensible business models will likely shape future funding strategies, aligning investor interests with the pressing needs and opportunities within healthcare innovation.
For a detailed exploration of these trends, a preview of SVB’s report is available with registration here.
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