Investment in startups has increased this year, but some industries have benefited greater than others.
Data from Crunchbase shows that AI-related healthcare is one of the areas that has seen significant growth in funding around the world. Total funding for this space will increase this year as more startups tackle highly painful and expensive parts of the health care system.
Broad trend: Venture investments in healthcare and biotechnology corporations specializing in artificial intelligence have been on an upward trend in recent years. This year is on track to record growth once again, with total funding for 2025 already exceeding that for the full year of 2024.
It’s not entirely surprising why: Many healthcare organizations proceed to make use of outdated technology, and the need for innovation is great. (A private example is that during a recent ER visit, I used to be given a CD of X-rays.)
The Book of Numbers: Investors have committed an estimated $10.7 billion to seed-to-growth financing for AI health technology corporations this year, based on Crunchbase. This implies that funding for 2025 is already 24.4% higher than the $8.6 billion raised in all of 2024.
According to Crunchbase data, investment peaked in the first quarter of this year before declining in the following two quarters.
Interestingly, recent report With Menlo Ventures on Artificial Intelligence and Healthcare highlights aspects that are likely contributing to increased investor interest. The report examined greater than 700 health systems, ambulatory care, payer and life sciences leaders. Some of his findings include:
- AI adoption in healthcare – a $4.9 trillion industry – is now 2.2 times faster than in the broader economy. According to Menlo, the industry represents one-fifth of the U.S. economy but only 12% of software spending.
- Startups are taking on the overwhelming majority of expenses, while legacy vendors are struggling to maintain up. Specifically, the study found that 85% of all spending on generative AI in healthcare now goes to startups moderately than incumbents.
- According to the company’s research, 22% of healthcare organizations have implemented domain-specific AI tools, a 7x increase from 2024 and a 10x increase from 2023.
- Medical records and back-office RCM, or revenue cycle management, account for almost 60% of all healthcare IT spending.
There have been a lot of mega-runs in the healthcare space this year.
The biggest healthcare/biotech AI enterprise of the year wrapped up in March. Right then Isomorphic laboratoriesAND Google spinoff that gives AI-powered solutions for drug discovery and development raised $600 million in a funding round led by Develop capital.
The financing was the first round of external financing for the company, which goals to use artificial intelligence to the drug development process. Other investors included G.V (formerly Google Ventures) i Alphabet.
It’s price noting that greater than one company in this industry has raised multiple rounds this year:
- Lili’s scienceA two-year-old startup working on a so-called “scientific superintelligence platform” for life sciences, chemistry and materials science has announced three rounds of funding in seven months: $200 million seed round in March; AND Series A for $235 million in September and A $115 million Series A extension at an October valuation of $1.3 billion, bringing the total to $550 million raised in 2025 alone. Investors in the company based in Cambridge, Massachusetts include: Generic catalytic converter, Alumni’s projects, Catalio Capital Management, Flagship Pioneer AND Nventures.
- Restricta 7-year-old AI-powered platform that transforms patient-doctor conversations into “structured” clinical notes for the healthcare industry has generated interest Series D for $250 million in February and then a Series E for $300 million just over 4 months later, valuing the Pittsburgh-based company at $5.3 billion. Supporters include Andreessen Horowitz, Khosla ventures, Sold by Gil, Partners of the Lightspeed enterprise, Partners of the Bessemer enterprise AND IVP.
- Open evidencewhich provides artificial intelligence-based medical search and clinical decision support, organized three rounds in just over eight months. In February, the 4-year-old Cambridge, Massachusetts-based startup became a unicorn Series A price $925 million raise led by Capital of Sequoia. Then in July he raised approx Series B financing price $210 million co-led by Little Perkins AND G.V at a valuation of $3.5 billion. Finally, in October, GV doubled its investments, leading a $200 million Series C financing at a valuation of $6 billion.
There were many other interesting rounds in 2025 that caught our attention.
At the starting of October DuetsAI-powered digital health platform for member activation and advantages delivery, raising $130 million strategic growth capital investment, led by FTV capital.
Also in October this year Deep Mind graduate Dominika Donato raised $13 million for his startup, Fine-tuned intelligencecreator of hospital AI agents in call centers. (The company told Crunchbase News it already handles 1000’s of calls a day. Attuned says the service went live inside 10 days at Lowell Community Health Centerhandling every mainline call 24/7 and is working to automate as much as 70% of multilingual interactions.
Honey health also recently emerged from stealth with Seed funding totals $7.8 million hosted by Partners Health Pelion. The company says its AI agents log into existing EHRs, or electronic health records, and autonomously execute complete workflows from start to complete, with the goal of reducing multi-million-dollar administrative costs.
And in September Hello Patienta year-old Austin-based conversational AI company that goals to “reinvent” patient communication has announced $22.5 million Series A financing hosted by Scale enterprise partners.
To get a broader picture, we have compiled a list of the top 10 biggest AI-related healthcare and biotech funds this year below.
Key takeaway: It’s clear that the overall AI investment boom has driven more capital into healthcare as one of the sectors where AI can have a large and measurable impact. Funding is growing because technology is higher, the demand for healthcare is urgent, more providers are starting to implement AI solutions, and investors now see clearer paths to achieving scale and profit.