Health Tech Venture Capital Investment Increases in 2025
Health tech venture capital investment rebounded in 2025, with funding through the third quarter surpassing last year's total and a 12% increase in the number of deals. This resurgence is marked by a 12% increase in the number of deals, alongside a notable rise in average deal sizes, which have reached $7.7 million. The average deal size reached $7.7 million, driven by a focus on practical AI products.
Health tech venture capital (VC) investment has experienced a strong rebound in 2025, with funding through the third quarter surpassing the total amount invested last year. This resurgence is marked by a 12% increase in the number of deals, alongside a notable rise in average deal sizes, which have reached $7.7 million. The sector's focus on practical artificial intelligence (AI) products has been a significant driver of these larger funding rounds.
AI Tools Drive Investment Surge
The development and implementation of AI tools have become a focal point for health tech companies, leading to increased investment. These tools are designed to provide practical solutions, enhancing the efficiency and effectiveness of health care delivery. As a result, the interest from venture capitalists has grown, reflected in the larger funding rounds observed in the sector.
Women's Health Tech Sees Significant Growth
Midi Health, a startup focused on menopause and midlife women's health, raised $50 million in a Series C funding round led by Advance Venture Partners. This round brings Midi Health's total funding to approximately $150 million since its founding in 2021. The company aims to build an AI search engine dedicated to women's health and has seen its patient base double since January. Additionally, funding to women's health startups has increased by 55% in 2023, reaching a total of $2.6 billion last year. Midi Health also launched the AgeWell preventive care program in May, which emphasizes women's longevity and health.
Major Funding Rounds in Health Tech
Several significant funding rounds have taken place within the health tech sector this year. Strive Health secured $550 million, while Capital Rx attracted $400 million. Greenway Health received a $400 million investment, and Thyme Care raised $97 million in a Series D round. Assort Health and Imagine Pediatrics also benefited from substantial investments, securing $76 million and $67 million in Series B funding, respectively.
Uncertainty in Public Offerings
Despite the increase in venture capital investment, there have been no major health tech initial public offerings (IPOs) in the third quarter of 2025. This is largely due to policy uncertainties affecting IPO decisions, and no major listings are expected in the near future. Companies in the health tech sector are choosing to remain private longer, capitalizing on the availability of venture funding to support their growth and development.
"The health tech sector's focus on practical AI products is driving larger funding rounds, and while policy uncertainty affects IPO decisions, venture capital investment in the sector continues to grow."