According to the latest PitchBook Healthtech VC Trends report, investment in healthtech is starting to grow again after a slower period in the market. In 2025, healthtech startups raised $15.3 billion in venture funding, which is 26% more than in 2024. The number of deals also increased slightly, with a strong rise in activity during the fourth quarter. These trends suggest that investors still see major opportunity in technologies that can improve how healthcare works.

A big reason for this renewed investment is artificial intelligence. AI tools are being used to help with tasks like clinical documentation, decision support, and administrative work inside healthcare systems. These tools can reduce the workload for providers and make healthcare operations more efficient. Because of this, investors are willing to pay higher valuations for companies using AI to solve real problems in healthcare. In fact, the report shows that the median pre-money valuation for healthtech companies rose to $31 million in 2025.

The report also highlights improvement in the exit market. In 2025, healthtech venture exits reached a record 141 deals, although many were smaller acquisitions rather than large IPOs. Private equity firms are increasingly buying healthtech companies, creating more exit opportunities for venture investors. At the same time, a few companies successfully went public, and several others may pursue IPOs in the next couple of years.

Overall, the latest PitchBook data shows that the healthtech market is still moving forward. As AI continues to improve both clinical and administrative workflows, companies that can demonstrate real impact and adoption are likely to attract the most investment. The opportunity remains large for technologies that make healthcare more efficient, more accessible, and better for patients.