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PublishedJuly29,2025

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eeArevenuecycleplatform

thatcanprocessasmany

appealsinanhourasmanualreviewerscaninaweek,or

thatreducesdenialsby10%,mightnotmakeforpunchy

headlines,butitcouldbethedifferencebetweenahospitalstayingopenorclosing.The

areasgettingthemostvalue

fromAIhavebeenprioritiesforhealthcareforyears,andAIismakingarealdifference.”

Areweinaninvestmentslump?Orareweseeingaresurgence?

Isthereathreateningmid-stagebarbellorhaveearlyroundsbeentakingcompaniesfurther?Istheexitmarketsuddenlyhealthyorarepublic

marketstakinghits?

Itlookslikeallofthatistrue.Allatonce.

Privatemarketsarelookingbetterthantheyhaveinyears.Afterthedizzyingheightsof2021andthesubsequentplunge,we’removing

towardssomethingthatlookslikeareasonableslopeforinvestment.

Valuationsaremakingmoresense.There’slesshypeaboutAIchangingthefaceofhealthcare,andmorefocusonpowerfultoolsmakinga

differenceinunseenways.Arevenuecycleplatformthatcanprocessasmanyappealsinanhourasmanualreviewerscaninaweek,orthat

reducesdenialsby10%,mightnotmakeforpunchyheadlines,

butitcouldbethedifferencebetweenahospitalstayingopenor

closing.TheareasgettingthemostvaluefromAIhavebeenprioritiesforhealthcareforyears,andAIismakingarealdifference.

Investorsarenolongersatisfiedwithpromises;theydemand

concreteplans,strongmarketpresenceandrobustclinical

evidence.CompaniesthatraisedaSeriesAwiththegoalofreaching

preclinicalmilestonesarefacingafundingenvironmentwantingPhase1databeforebackingaSeriesB.

Dataandinterviewsshowapotentiallydangerousemergingbarbell

trend.Thescaleofearly-stageroundshasballooned.WithbiggerseedandSeriesAraisesandmultipleextensionrounds,early-stage

companiesareraisingenoughtobringthemfurtherthanweexpect.

IstheSeriesBchallengeasymptomofatoughermarket,orsimplya

reflectionofstartupsstrategicallyraisingenoughintheirSeriesAto

reachcriticalvalueinflectionspointsbeforeseekingadditionalcapital?

Publicmarketscanalsobedeceptive,especiallyifyoufocuson

industryindices.Manycompaniesthatexitedinthefrothy2021marketlikelyshouldn’thave,andtheycontinuetodragdowntheoverall

healthcaremetrics.Butbeneaththesurface,newentrantswithsolidfundamentalsarenotjustsurvivingbutthrivinginpublicmarketsevenastheyweatherthebroadereconomicstorms.

BigPharmaisespeciallyreliantontheinnovationecosystem.

Expiringexclusivityrightsmeantheydesperatelyneedtorefillpipelinesandfindnewblockbusters,andforthattheyneedaresearchand

startuppipelineexploringnoveltherapeutics.Corporateventurecapital(CVC)firmsandcorporate-affiliatedgroupsareexploringthe

possibilitiesthatcomefromfundingstartupsearlier.DatashowsthatbiopharmastartupscangetsubstantialbenefitsfromCVCinvestment,makingthesescoutinginvestmentsapotentialbigwin-winforboth

sides.

Inthefaceofsomuchuncertainty,venturecapital(VC)ismorecriticalthanever.Theinnovationitfuelsandthestartupsitempowersare

buildingthetechnologies,toolsandtherapiesthatarethefutureof

healthcare.It’sanexcitingtime.We’veweatheredstormsbefore.We’reproudtoplayourroleandtosupportthisvitalindustryinadynamic,

rapidlychangingworld.

JackieSpencer

HeadofRelationshipManagementforLifeScience&HealthcareBanking

jspencer@

svb》SBianck。nvaley

2

ADivisionofFirstcitizensBank

HEALTHCAREINVESTMENTS&EXITS|MID-YEARREPORT2025

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Trending

1.Fundraisingistakingahit.We’recurrentlytrending

fortheworstfundraisingyearsince2015.

2.AIisdrivingahealthtech

surge.Healthtechisnearlyathirdofallhealthcare

investmentin20251todate.

InvestorSentiment

Raisingfundsisnotwhatitusetobe.Amidtheregulatoryandgeopoliticalturmoil,

overallfundraisingappearstobe

headingforthelowestvolumesinmorethan10years.Thatisnottosaythat

everyoneisstruggling.Thelarger,moreestablishedfundmanagersmaynotevennoticethesedownwardtrendingtotals.

MacroOutlook

“Inthefirsthalfof2025,theUSequitymarketdigestedanimmenseamountofheadlineriskandeventuallylookedthroughthenoise.

TheS&P500hascrossednewall-timehighs,corporateearningsareprojectedtorisefurther,andunemploymentisstillverylow.Policy

uncertaintymightdelaybusinessdecisionsinthenear-term,butin

ourviewthesechallengesmayproveshort-livedifgovernmentpolicycrystallizesandcorporationsadjusttothenewrulesoftheroad.”

PhilNeuhart

SVP,DirectorofMarketandEconomicResearch

蛋Firsrctizensweath.

3.Chinaisbecomingago-toforbiopharmaresearch.

Lessthan$1BinspendingonChinesebiopharmain2022hassuddenlygrowntomorethan$3Binthefirsthalf

of2025alone.

Biopharma

Investmentisdownrelativeto2024,andsentimentisstrugglingtobuild

momentum.PoorpublicperformanceandreturnsrelativetobenchmarksliketheS&P500makesithardforgeneraliststostay

committedtothespace.StrongM&A

activityandpotentialratecutsinthe

secondhalfoftheyearcouldbethe

catalysttopositivelyshiftthesentiment.

Healthtech

AIisdrivinganewresurgenceinhealthtechinvesting.Whilethepreviouspeakswere

largelydrivenbyvirtualandhybridcare

companies,thecurrentboomiscomingfromadministrativetoolsforboththe

front-andback-officethatare

integratingAI.Functionslikerevenue

cyclemanagementandpatient

communicationhaveclearerROIand

.

performancemetrics,makingthemmoreappealingtoanindustrythat’sseenalotofAIhypeovertheyears

Dx/Tools

Withstrongcommercialdynamics,minimalresidualdisease(MRD)testsarecontinuingtomakeasplashintheDx/Toolsspace.

Similarlystrongperformancesinthe

publicmarketbringanopportunityfor

optimismthatexitmarkets—whichhavebeengrindingforward—couldseesomepositiveactivityinthesecondhalfof2025.AIcontinuestoplayanimportantrole,

accountingforhalfofallinvestmentintheDx/Toolsspace.

Device

Consistencyisthewatchwordsofar

indeviceinvestment,whichhasseen

investmenttotalsbetween$3Band$4Bineveryhalfsince2022.Thatmightbeabouttochangethough,ifneuromodulation

andAI-enabledremotesurgerycontinuetoattractattentionandmoney.Afew

strongexitswouldn’thurteither,but

macroeconomicsmightbeabarrierthereasdevicecompanieslooklikelytobe

amongthehardesthitbytariffs.

3

Notes:1)All2025dataisasof06/30/2025.

ADivisionofFirstcitizensBank

HEALTHCAREINVESTMENTS&EXITS|MID-YEARREPORT2025

Source:PitchBookData,Inc.andSVBproprietarydata.

》ank

vbSBC。nvaley

ADivisionofFirstcitizensBankHEALTHCAREINVESTMENTS&EXITS|MID-YEARREPORT20254

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HealthcareInvestmentsandExitsMid-year2025reportTogetthefullreport,reachouttoyourSVBpointofcontact

What’sinside:

svb》SBianck。nvaley

ADivisionofFirstcitizensBank

Allnon-SVBnamedcompaniesareindependentthirdpartiesandarenotaffiliatedwithSiliconValleyBank,adivisionofFirst-CitizensBank&TrustCompany.

5

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LeadAuthorsAcknowledgments

JackieSpencer

HeadofRelationship

ManagementforLifeScience

&HealthcareBanking

jspencer@

TylerDean

SeniorVicePresident

Biotech,Tools,&Diagnostics

RelationshipManagement

tdean@

JackieSpencerleadstheUSRelationshipManagementteamforLifeScienceandHealthcareAcceleratorandGrowth.Jackieandherteamarefocusedonprovidingbankingandfinancingsolutionstoinnovative

companiesinthesector.SincejoiningSVBin2007,Jackiehasworkedacrossboththetechnologyandhealthcarepracticesfromemergingmarkettolate-stagecorporatefinance.

JackiegraduatedfromSt.Mary’sCollegeofCaliforniawithhonors,receivingabachelor’sinfinance.

TylerDeanisaSeniorVicePresidentonthebiopharmaandDx/ToolspracticeforBostonandthegreater

Northeast.HeandtheLifeScienceandHealthcareteamprovideinsights,advice,venturefinancingandbankingsolutionstohelpascompaniesscalefromSeriesAandbeyond.HejoinedSVBin2022andpreviouslyhelda

varietyofrolesfocusedoncapitalmarkets,relationshipmanagementandventuredebtfinancing.

TylergraduatedfromBrighamYoungUniversityinUtahwithadegreeinfinance.

MarketInsightsTeamAuthors

AlexanderLennox-Miller

SeniorResearcher

MarketInsights

alennoxmille@

TimotLamarre

Researcher

MarketInsights

tlamarre@

Thankyoutothefollowingforlendingtheirsubject-matterexpertisetothisreport:

sonofiventuresFSPRIME

TimLew

DirectorofBusiness

DevelopmentforStartupBanking–LifeScience

tlew@

TimLewleadsbusinessdevelopmentforearly-stagelifescienceeffortsintheSanFrancisco

BayArea.Inthisrole,hementorsandadvises

startupsatthebeginningstagesoftheirjourney,connectingthemtothelargerSVBecosystem

andacceleratingthemtotheirnextseriesgoalsviacompanybuildingandfundraisingstrategies.

Timholdsamaster’sofscienceinbiologyfromUCSantaBarbaraandanMBAfromtheUNC

Kenan-FlaglerBusinessSchool.

?ATLASVENTURE

contributors

ArianaDaCruz

SeniorVicePresident

VentureCapitalRelationshipManagementLifeScience&Healthcare

AOgnibene@

RaysaBousleiman

SeniorVicePresident

VentureCapitalRelationshipManagementLifeScience&Healthcare

rbousleiman@

?2025First-CitizenscBank&aTrusytCompany.SiliconValleyBank,adivisionofFirst-CitizensBank&TrustCompany.MemberFDIC.

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Disclaimers

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First-CitizensBank&TrustCompanyisnotlicensedtoundertakebankingbusinessinanycountryoutsidetheUnitedStates,ortoundertakeanyotherregulatedactivityinanycountryoutsidetheUnitedStates.

Thismaterial,includingwithoutlimitationtothestatisticalinformationherein,isprovidedforinformationalpurposesonly.Thematerialisbasedinpartoninformationfromthird-partysourcesth