Photo: Jose Luis Pelaez Inc/Blend Images
A report from Silicon Valley Bank revealed that with greater adoption of AI-enabled offerings, provider organizations are enticing more venture capital investment than any other healthcare sector in 2025.
Accounting for 44% of overall healthtech investment, provider operations, activities that support the delivery of healthcare, including scheduling, documentation and billing, are raising the healthtech sector to account for its highest investment levels since 2022.
According to the report, to date, $5.5 billion has been invested in healthcare provider operations and with a full-year projection of $8.25 billion, the sub-sector is on track to exceed its 2021 record of $7.8 billion.
Data from the report indicates that alternative care accounted for 42% of healthtech investment in 2021, in contrast to just 9% now.
At the same time, provider operations, which accounted for 19% of investment four years ago, is now accounting for nearly half.
According to the report, $5.5 billion was invested in activities that support the delivery of healthcare, including scheduling, documentation and billing.
In addition, the healthcare market saw almost a 42% boost in seed-stage AI valuations since 2021.
Meanwhile, 52% of the deals in 2025 have been in AI.
The report shows that $18.5 billion is predicted to be the total investment in healthtech by the end of the year.
"Healthtech has undergone a dramatic shift as AI adoption has significantly boosted investment in provider operations," Jennifer Friel Goldstein, head of relationship management for technology and healthcare banking at Silicon Valley Bank, said in a statement.
"The sector has traditionally been focused on clinical care but there is a new focus on front and back-office tools as AI helps to streamline these operations. Some of the biggest opportunities for AI in healthcare are to solve business problems, not medical care problems."
THE LARGER TREND
In July, according to a report from Silicon Valley Bank, AI-related deal activity in the healthcare sector remained positive.
The report noted that all healthcare sectors witnessed strong growth in AI deal activity over the last three years; however, companies not leveraging AI experienced a 20% decrease.
Several companies have garnered investments this year in the digital health space.
This month, Lila Sciences closed a $350 million Series A round, bringing its total capital raise to $550 million in under a year.
MD Integrations secured $77 million from Updata Partners and Denali Growth Partners. The company said it would use the funds to accelerate its growth.
Virtual mental health platform Marble Health secured $15.5 million in a Series A funding round led by Costanoa. Town Hall Ventures and Khosla Ventures participated in the round.
Marble Health used the funds to expand its workforce and install its platform in more schools across the county.
WellTheory closed a $14 million Series A funding round, bringing its total raise to $26.2 million.
The company used the funds to drive commercial growth, expand its programs for employers and payers, and increase AI development.
Oura secured more than $900 million in funding, bringing its valuation to approximately $11 billion.
The company also nominated Wen Hsieh, founding managing partner at Matter Venture Partners, to the board and appointed David Shuman, founder of Lateralus Holdings and Oura board member since 2016, as the company's new chair of the board of directors.
