SVB Healthcare 2024 Review
State of Venture Capital
I recently came across the 2024 SVB Healthcare Investments & Exits Report—a compelling snapshot of the current venture capital landscape. Given my particular interest in MedTech and HealthTech, I was eager to see how these sectors are holding up. From the massive deals in AI-driven protein design to steady investment in device startups, the report offers a wealth of data and insights that can help founders, investors, and healthcare providers navigate today’s unpredictable market.
MedTech
The overall trend is slightly down over the past few years but seed funding in the device sector (U.S. and Europe) appears to be inching back up in 2024 after a dip in 2023, encouraging momentum for early-stage MedTech. Although total device dollars remain below 2021’s peak, the relative share going to seed deals has slightly rebounded—an indicator that investors are still willing to back young companies with compelling technology. That said, seed dollars remain well below the highs from a few years ago, so founders will need to demonstrate clear clinical impact and capital efficiency to stand out in a more selective market.
Cardiovascular devices lead the pack with 19 deals and a healthy $8.0B in known deal value, plus the shortest median time to exit (5.4 years). Surgical devices match that $8.0B figure but require a longer path to liquidity (8.8 years). Vascular is also sizable at $5.6B, while categories like orthopedic and non-invasive monitoring see lower total values but still command notable deal counts. Despite the range in time to exit (from just over five years up to nearly a decade), it’s clear that buyers remain enthusiastic about innovative medical device technologies that address critical patient needs.
HealthTech
While consumer-focused healthcare tools often grab the headlines and inspire much of the enthusiasm around HealthTech, the deal data shows that providers and payers are driving M&A activity where immediate value is most apparent: operations, efficiency and workflow optimization. Provider Operations alone accounts for more than $30B in deal value with a relatively long time to exit (7.4 years), suggesting that buyers are comfortable investing in tools that reduce costs and increase revenue in clinical settings. Although consumer enablement remains a powerful force for innovation—and arguably the next frontier of disruptive growth—the current market clearly rewards solutions that solve pressing provider pain points right now.
Final Thoughts
Device sector is beginning to rebound. Although total device funding is below 2021 highs, there are signs of stabilization. IPOs and M&A in acute-care-oriented technologies (e.g., monitoring, imaging, neuromodulation) suggest that hospitals may be key catalysts for future MedTech growth.
Early-stage strength. A quarter of device funding since 2023 has gone to early-stage startups, indicating continued appetite for novel concepts—especially in robotics, monitoring, and AI-enabled platforms. However, seed rounds are not keeping pace with inflation and rising R&D costs, so young companies must demonstrate capital efficiency and clear clinical impact.
Shift to acute-care AI. Hospitals are showing renewed interest in AI-driven imaging, monitoring, and decision-support solutions that can deliver measurable ROI (e.g., faster diagnoses, reduced staff workloads, fewer errors).
Clinical data access is pivotal. As with other healthcare sectors, the value of AI solutions hinges on robust clinical data and real-world evidence. MedTech startups that partner with hospitals for data collection and pilot programs are more likely to secure later-stage funding. I’ve personally seen this dynamic at UNC, where concerns about data sharing, siloed systems, and privacy introduce significant friction in accessing the clinical data needed to develop and validate new solutions.
Looking ahead to 2025, the MedTech landscape appears primed for greater adoption of AI-driven tools and continued M&A. We’ll see with HealthTech…