Healthtech Sector Investment Shows Resilience and Early Recovery in 2024; Silicon Valley Bank Releases Fifth Edition of Future of Healthtech Report

Core Insights - The healthtech sector is showing signs of early recovery with investments stabilizing between $4.0 billion and $4.5 billion per quarter in 2024, surpassing pre-pandemic levels [1][2] - The 2024 Future of Healthtech Report highlights the growing importance of AI and value-based care in reshaping healthcare, despite challenges in securing capital [2][3] Investment Trends - Healthtech investments in the first eight months of 2024 have already exceeded the total for all of 2019 [4] - In 2024, 42% of healthtech investment rounds were seed rounds, up from 21% in 2019, with a median deal size of $3.8 million [4] - 35% of US healthtech deals of $5 million and above were undisclosed, and at least 12% were down rounds, marking the highest proportion in recent years [4] AI Investment - Overall funding for AI-focused healthtech reached $4.8 billion, with $2.4 billion specifically for AI-focused administrative healthtech [5] - 50% of 2024 healthtech AI investment has been in administrative applications, compared to 37% in clinical and 13% in R&D [5] - AI valuations in healthtech have increased by 50% from 2019 values, with more investments in healthtech companies leveraging AI in 2024 than in any prior year [5]