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

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Silicon Valley Bank's 2024 Future of Healthtech Report reveals a resilient healthtech sector showing signs of early recovery. Investments have stabilized between $4.0 billion and $4.5 billion per quarter, surpassing pre-pandemic levels. Key findings include:

- 42% of healthtech investment rounds were seed rounds in 2024, up from 21% in 2019
- 35% of US healthtech deals $5M and above were undisclosed, with at least 12% being down rounds
- AI-focused healthtech attracted $4.8 billion in funding, with 50% in administrative healthtech
- AI valuations in healthtech are up 50% from 2019 values

The report highlights the growing importance of AI in reshaping healthcare, particularly in streamlining administrative workflows. Companies demonstrating clear ROI are driving the sector forward, despite challenges in finding capital or exits.

Il Rapporto 2024 sul Futuro della Salute Tecnologica della Silicon Valley Bank rivela un settore della salute tecnologica resiliente che mostra segni di una precoce ripresa. Gli investimenti si sono stabilizzati tra i 4,0 miliardi e i 4,5 miliardi di dollari a trimestre, superando i livelli pre-pandemia. I principali risultati includono:

- Il 42% dei round di investimento nella salute tecnologica nel 2024 erano round di seed, rispetto al 21% del 2019
- Il 35% delle operazioni di salute tecnologica negli Stati Uniti di 5 milioni di dollari e oltre erano non divulgate, con almeno il 12% di esse in round di discesa
- La salute tecnologica focalizzata sull'IA ha attratto 4,8 miliardi di dollari in finanziamenti, con il 50% destinato alla salute amministrativa
- Le valutazioni dell'IA nella salute tecnologica sono aumentate del 50% rispetto ai valori del 2019

Il rapporto sottolinea l'importanza crescente dell'IA nella riorganizzazione dell'assistenza sanitaria, in particolare nell'ottimizzazione dei flussi di lavoro amministrativi. Le aziende che dimostrano un chiaro ROI stanno guidando il settore, nonostante le difficoltà nel reperire capitali o nel trovare uscite.

El Informe sobre el Futuro de la Salud Tecnológica 2024 del Silicon Valley Bank revela un sector de salud tecnológica resiliente que muestra señales de una recuperación temprana. Las inversiones se han estabilizado entre 4.0 mil millones y 4.5 mil millones de dólares por trimestre, superando los niveles previos a la pandemia. Los hallazgos clave incluyen:

- El 42% de las rondas de inversión en salud tecnológica fueron rondas semilla en 2024, frente al 21% en 2019
- El 35% de los acuerdos de salud tecnológica en EE. UU. de 5 millones de dólares y más fueron no divulgados, con al menos el 12% siendo rondas descendentes
- La salud tecnológica centrada en IA atrajo 4.8 mil millones de dólares en financiación, con el 50% en salud administrativa
- Las valoraciones de IA en salud tecnológica han aumentado un 50% desde los valores de 2019

El informe destaca la creciente importancia de la IA en la reconfiguración de la atención médica, particularmente en la optimización de los flujos de trabajo administrativos. Las empresas que demostraron un claro ROI están impulsando el sector, a pesar de los desafíos para encontrar capital o salidas.

실리콘밸리은행의 2024년 헬스테크 미래 보고서는 조기 회복의 신호를 보이는 회복력 있는 헬스테크 분야를 드러냅니다. 투자는 분기당 40억에서 45억 달러 사이에서 안정세를 보이고 있어, 팬데믹 이전 수준을 웃돕니다. 주요 결과는 다음과 같습니다:

- 2024년 헬스테크 투자 라운드의 42%가 시드 라운드였으며, 이는 2019년의 21%에서 증가한 수치입니다
- 미국 헬스테크 거래의 35%가 500만 달러 이상이며, 이 중 최소 12%는 하락 라운드였습니다
- AI 중심의 헬스테크는 48억 달러의 자금을 유치했으며, 이 중 50%는 행정 의료 분야에 집중되었습니다
- 헬스테크 내 AI의 가치는 2019년 가치에서 50% 증가하였습니다

이 보고서는 헬스케어 리모델링에서 AI의 중요성이 더욱 커지고 있음을 강조하며, 특히 행정 업무의 흐름을 간소화하는 데 중요한 역할을 하고 있습니다. 명확한 ROI를 보이는 기업들이 자본 조달이나 출구에서의 어려움에도 불구하고 산업을 전진시키고 있습니다.

Le Rapport 2024 sur l'avenir de la santé technologique de Silicon Valley Bank révèle un secteur de la santé technologique résilient montrant des signes de récupération précoce. Les investissements se sont stabilisés entre 4,0 milliards et 4,5 milliards de dollars par trimestre, dépassant les niveaux d'avant la pandémie. Les principales conclusions incluent :

- 42 % des rondes d'investissement en santé technologique étaient des rondes de démarrage en 2024, contre 21 % en 2019
- 35 % des transactions de santé technologique aux États-Unis de 5 millions de dollars et plus étaient non divulguées, avec au moins 12 % d'entre elles étant des rondes descendantes
- La santé technologique axée sur l'IA a attiré 4,8 milliards de dollars de financement, dont 50 % dans la santé administrative
- Les valorisations de l'IA dans la santé technologique ont augmenté de 50 % par rapport aux valeurs de 2019

Le rapport met en lumière l'importance croissante de l'IA dans la restructuration des soins de santé, en particulier pour rationaliser les flux de travail administratifs. Les entreprises qui démontrent un ROI clair propulsent le secteur en avant, malgré les défis liés à la recherche de capital ou de sorties.

Der Bericht über die Zukunft der Healthtech 2024 von Silicon Valley Bank zeigt einen resilienten Healthtech-Sektor, der Anzeichen einer frühen Erholung zeigt. Die Investitionen haben sich zwischen 4,0 Milliarden und 4,5 Milliarden Dollar pro Quartal stabilisiert und übertreffen die Werte vor der Pandemie. Zentrale Ergebnisse umfassen:

- 42% der Investitionsrunden im Bereich Healthtech waren im Jahr 2024 Seed-Runden, im Vergleich zu 21% im Jahr 2019
- 35% der US-Healthtech-Deals über 5 Millionen Dollar wurden nicht offengelegt, wobei mindestens 12% Rückgänge waren
- AI-orientierte Healthtech zog 4,8 Milliarden Dollar an Finanzierung an, wobei 50% im administrativen Gesundheitsbereich investiert wurden
- Die Bewertungen von AI im Healthtech sind im Vergleich zu 2019 um 50% gestiegen

Der Bericht hebt die wachsende Bedeutung von KI bei der Umgestaltung des Gesundheitswesens hervor, insbesondere bei der Optimierung administrativer Workflows. Unternehmen, die einen klaren ROI aufweisen, treiben den Sektor voran, trotz der Herausforderungen bei der Kapitalbeschaffung oder im Bereich Exits.

Positive
  • Healthtech investments stabilized between $4.0 billion and $4.5 billion per quarter in 2024, surpassing pre-pandemic levels
  • 42% of healthtech investment rounds were seed rounds in 2024, up from 21% in 2019
  • AI-focused healthtech attracted $4.8 billion in funding
  • AI valuations in healthtech are up 50% from 2019 values
  • Tempus IPO in June 2024 has seen total returns of 48% as of August
Negative
  • 35% of US healthtech deals $5M and above were undisclosed, with at least 12% being down rounds
  • No deals over $500M in 2024, compared to at least one $500M+ deal in each of the prior five years
  • Tempus took a significant valuation haircut for its IPO

Healthtech Investments Surpass Pre-Pandemic Levels, Stabilizing Between $3.5B and $4.5B Per Quarter in 2024

SAN FRANCISCO, Oct. 16, 2024 /PRNewswire/ -- The healthtech sector is experiencing a recalibration in valuations, as the industry is showing signs of early recovery with investments stabilizing and artificial intelligence (AI) driving new growth, according to the 2024 Future of Healthtech Report from Silicon Valley Bank (SVB), a division of First Citizens Bank. Despite ongoing market volatility and macroeconomic uncertainty, healthtech investment in 2024 is on a positive trajectory, hovering between $4.0 billion and $4.5 billion per quarter and surpassing pre-pandemic levels.

The 5th 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 and value-based care in reshaping healthcare. It also explores the challenges companies face in finding their next round of capital or an exit as investors and acquirers have become more discerning.  Despite these challenges, the report indicates that healthtech remains a hotbed for innovation, with investments in Provider Operations and Alternative Care leading the sector. 

"We are witnessing a transition from the inflated valuations of 2021 and 1H-2022 to more sustainable investment practices," stated Julie Betts Ebert, Managing Director of Life Sciences and Healthcare Banking at Silicon Valley Bank. "AI is playing a crucial role in streamlining administrative workflows, and companies that can demonstrate a clear return on investment are driving the sector forward."

Additional findings from the Future of Healthtech 2024 report include:

Healthtech Key Data Points

  • Dollars raised in the first eight months of 2024 (January through August) have already exceeded the totals for all of 2019.
  • In 2024, 42% of healthtech investment rounds were seed rounds, up from 21% in 2019, with a median deal size of $3.8M.
  • Of all US healthtech deals $5M and above, 35% were undisclosed and at least 12% were down rounds, the highest proportion in recent years.
  • Thus far in 2024, we have yet to see a deal over $500M, where each of the prior five years had at least one deal of $500M or more.

AI Investment by the Numbers

  • Overall funding for AI-focused healthtech attracted $4.8 billion, with AI-focused administrative healthtech generating 2.4 billion in funding.
  • 50% of 2024 healthtech AI investment has been administrative, compared to 37% clinical, and 13% R&D.
  • There have already been more investments in healthtech companies leveraging AI in 2024 than in any prior year. AI valuations in healthtech are up 50% from 2019 values.
  • Tempus, with its $411M IPO in June 2024, showed that taking a significant valuation haircut could be a worthwhile price of admission into the public markets. Since going public, Tempus has seen total returns of 48% as of August.

Ebert, along with Jackie Spencer, Head of US Relationship Management for Life Science and Healthcare and other SVB leaders, will be at the upcoming 2024 HLTH conference. 

Learn More
To read the complete Future of Healthtech 2025 report, click here:
The Future of Healthtech Report 2024 | Silicon Valley Bank (svb.com)

A leader in providing market insights about the innovation economy, SVB has produced 10 new market reports to date in 2024. 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 and private banking to individuals and companies in the technology, life science and healthcare, private equity, venture capital and premium wine 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

FAQ

What is the current investment trend in the healthtech sector according to SVB's 2024 report?

According to SVB's 2024 Future of Healthtech Report, investments in the healthtech sector have stabilized between $4.0 billion and $4.5 billion per quarter, surpassing pre-pandemic levels.

How has AI investment in healthtech changed in 2024?

AI-focused healthtech attracted $4.8 billion in funding in 2024, with 50% of investments in administrative healthtech. AI valuations in healthtech are up 50% from 2019 values.

What percentage of healthtech investment rounds were seed rounds in 2024?

In 2024, 42% of healthtech investment rounds were seed rounds, up from 21% in 2019, with a median deal size of $3.8 million.

How did Tempus' IPO perform in 2024?

Tempus had a $411 million IPO in June 2024, taking a significant valuation haircut. However, since going public, Tempus has seen total returns of 48% as of August.

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