Dive Brief:

Venture capital funding for healthcare technology startups is rallying in 2025, with investment through the third quarter surpassing last year’s total, according to a report published Thursday by PitchBook.

Startups raised $3.9 billion in the third quarter, down slightly from the $4 billion and $4.4 billion, respectively, scooped up during the first two quarters of the year. The number of deals increased 12% compared with the previous quarter.

Average deal size rose to a record high of $7.7 million, suggesting that higher valuations — especially for companies touting artificial intelligence tools — are driving larger funding rounds, according to the analysis.

Dive Insight:

AI has been boosting digital health funding in recent months , as investors rush to pour funds

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