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Flare Capital‘s new examination of 4,000 healthcare AI venture capital deals looked at where investment has actually created value — that is, what early-stage, venture-backed technology matures enough to impact the health care ecosystem?
The analysis finds that health AI startups selling to health systems, insurers and the life sciences sector have raised a combined $60 billion in the last decade — 70% of that was raised in the last 5 years. But “[m]ore capital, however, does not universally equate to more value creation,” authors write: Most AI startups selling to health systems haven’t advanced beyond Seed or Series A and B stages; just 5% selling to health systems reach Series C or later, compared to about 10% of life sciences and 16% of health plan startups.
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