The Rise of AI in Health Tech Startups

Health tech startups have experienced a resurgence in investment, particularly those integrating artificial intelligence into their solutions. The pandemic initially inflated funding levels as virtual care gained popularity, but this trend has since plateaued with more patients returning to in-person visits. Despite a more subdued atmosphere for funding compared to pandemic highs, AI remains the focal point for investment, with many investors explicitly seeking AI integration in proposals. However, while AI technology shows promise, the majority of revenue in healthcare continues to flow from traditional services involving patient care interactions.