"AI in Healthcare: A Hotspot for Startup Funding"
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 the life sciences and health plan markets have been able to create more value for their customers, according to Flare. But those sectors also have higher operating margins, and can likely devote more resources — and time — to scale AI products.
Still, health systems are a major target for AI startups, according to the report, which reviewed more than 4,000 venture capital deals.
Companies selling to health systems have raised more than $23 billion from 2014 though the end of 2023. Nearly half of that investment has gone to clinical care startups, which offer AI tools for imaging, clinical decision support and diagnostics.
Nearly $9.5 billion went to startups focused on care management and clinical operations, which includes tools for handling utilization and prior authorization, risk adjustment and other work key to value-based care, the analysis found.
SOURCE - HEALTHCAREDIVE
#HealthcareAI , #VentureCapital , #StartupFunding , #DigitalHealth , #HealthTech
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 the life sciences and health plan markets have been able to create more value for their customers, according to Flare. But those sectors also have higher operating margins, and can likely devote more resources — and time — to scale AI products.
Still, health systems are a major target for AI startups, according to the report, which reviewed more than 4,000 venture capital deals.
Companies selling to health systems have raised more than $23 billion from 2014 though the end of 2023. Nearly half of that investment has gone to clinical care startups, which offer AI tools for imaging, clinical decision support and diagnostics.
Nearly $9.5 billion went to startups focused on care management and clinical operations, which includes tools for handling utilization and prior authorization, risk adjustment and other work key to value-based care, the analysis found.
SOURCE - HEALTHCAREDIVE
#HealthcareAI , #VentureCapital , #StartupFunding , #DigitalHealth , #HealthTech
"AI in Healthcare: A Hotspot for Startup Funding"
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 the life sciences and health plan markets have been able to create more value for their customers, according to Flare. But those sectors also have higher operating margins, and can likely devote more resources — and time — to scale AI products.
Still, health systems are a major target for AI startups, according to the report, which reviewed more than 4,000 venture capital deals.
Companies selling to health systems have raised more than $23 billion from 2014 though the end of 2023. Nearly half of that investment has gone to clinical care startups, which offer AI tools for imaging, clinical decision support and diagnostics.
Nearly $9.5 billion went to startups focused on care management and clinical operations, which includes tools for handling utilization and prior authorization, risk adjustment and other work key to value-based care, the analysis found.
SOURCE - HEALTHCAREDIVE
#HealthcareAI , #VentureCapital , #StartupFunding , #DigitalHealth , #HealthTech
