Where healthcare AI startups are raising venture capital funding

Healthcare DIVE September 16, 2024
Emily Olsen

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...

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