Healthcare DIVE September 16, 2024
AI startups have raised about $60 billion over the past decade. But just over 5% of companies selling to health systems have matured beyond seed and early-stage funding rounds.
Dive Brief:
- Health systems are a large market for artificial intelligence startups, but companies selling to insurers or life sciences firms create value more quickly, according to an analysis by venture capital firm Flare Capital Partners.
- Most AI startups selling their products to health systems haven’t progressed past early-stage investment rounds. Just over 5% of those companies have reached a Series C raise or later, compared with nearly 10% of startups in life sciences and about 16% of companies selling to health plans.
- The gap suggests AI startups in...