After raising a record $12.4B across 527 deals last year, funding to the healthcare AI space has cooled significantly in 2022 so far. This is reflective of the broader slowdown in venture funding in 2022.
Despite the drop, healthcare remains one of the top sectors for AI deal activity. Amid the pandemic, telehealth, remote monitoring, and AI-powered drug R&D startups raised some big funding rounds.
For example, SWORD Health, which connects patients to AI-powered virtual physical therapy, reached unicorn status when it raised $163M in Q4’21. Drug R&D startup Xtalpi raised a $400M Series D in Q3’21 at a $2B valuation. Meanwhile, remote patient monitoring startup Biofourmis raised a mega-round in 2020, and an additional $300M round in Q2’22 at a $1.3B valuation.
In this brief we’ll look at:
- The topline findings and implications for this shift
- The market drivers underlying the change
- The categories receiving the most attention