AI-enabled provider operations amassed 73% of Healthtech mega-deals in 2025
SAN FRANCISCO, Oct. 16, 2025 /PRNewswire/ -- With increased adoption of AI-enabled solutions, provider operations is attracting more venture capital (VC) investment than any other Healthtech sector in 2025, according to the latest report from Silicon Valley Bank (SVB), a division of First Citizens Bank. Accounting for 44% of overall Healthtech investment, provider operations – activities that support the delivery of healthcare, such as scheduling, documentation, and billing – is boosting the Healthtech sector to account for its highest investment levels since 2022. To date, $5.5B has been invested in healthcare provider operations and with a full year projection of $8.25B, the sub-sector is on pace to surpass its 2021 record of $7.8B.
"Healthtech has undergone a dramatic shift as AI adoption has significantly boosted investment in provider operations," said Jennifer Friel Goldstein, Head of Relationship Management for Technology & Healthcare Banking at Silicon Valley Bank. "The sector has traditionally been focused on clinical care but there is a new focus on front and back-office tools as AI helps to streamline these operations. Some of the biggest opportunities for AI in healthcare are to solve business problems, not medical care problems. Companies are leveraging AI solutions to improve inefficiencies that allow for more critical matters, like patient care, to be prioritized."
According to the data, alternative care accounted for 42% of Healthtech investment dollars in 2021 compared to just 9% today. Meanwhile, provider operations, which accounted for 19% of investment four years ago, is now accounting for almost half.
The 6th edition of SVB's Future of Healthtech Report provides a detailed analysis of the Healthtech market, including investment trends, sector evolution, and the growing importance of AI in reshaping healthcare.
Numbers to Know:
- $5.5B was invested in activities that support the delivery of healthcare such as scheduling, documentation, and billing
- ~42% boost in seed-stage AI valuations since 2021
- 32 M&A deals in provider operations in 2025
- 52% of the deals in 2025 have been in AI
- $18.5Bis expected to be the total investment in Healthtech by year-end
Additional key findings from the Future of Healthtech 2025 report include:
- Generalist investors such as Andreessen Horowitz, General Catalyst, and GV have added a significant valuation premium of 22% to mega-deals, which represent 38% of total Healthtech investment this year
- Of the nearly $1.5B already invested in 2025, 40% went to just a single company, Abridge
- Physicians trust AI most for work efficiency (75%) and trust it least for patient privacy (15%)
- Consolidation through M&A has become the most realistic exit strategy, with 2025 on pace to see record highs of 13 Healthtech PE exits
Goldstein, along with other leaders from the SVB Life Science and Healthcare team, will be sharing the report at the upcoming 2025 HLTH conference from October 19-22. SVB's Raysa Bousleiman, Vice President for Venture Capital Relationship Management in Life Sciences and Healthcare, will also be on a panel at HLTH discussing The Trillion Dollar Blind-Spot.
Learn More
To read the complete Future of Healthtech 2025 report, click here: Future of Healthtech 2025 Report: Key VC Investment Drivers
A leader in providing market insights about the innovation economy, SVB has produced 16 new market reports to-date 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
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SOURCE Silicon Valley Bank
