Healthtech VC Funding Surges: Ambience & OpenEvidence Set New AI Valuation Standards

The latest PitchBook report indicates that venture capital investment into healthcare technology startups has begun to climb sharply in 2025, with funding through the third quarter already exceeding all of 2024. [1] Key drivers include record‐high average deal size—$7.7 million in Q3—and a rising number of deals, both reflecting bullishness among investors who believe the sector’s tailwinds are strong. [1]

Two of the most prominent examples are Ambience Healthcare and OpenEvidence, both of which illustrate how different AI subsegments are being valued and scaled.

Ambience’s Series C round of $243 million, co-led by Oak HC/FT and a16z, along with participation from major investors like OpenAI Startup Fund and Kleiner Perkins, shows heavy investor conviction in ambient AI that automates documentation, coding, and compliance across diverse care settings.[4] Its $1.25 billion valuation underscores the premium being placed on companies already delivering ROI and operational savings to large health systems. [4]

OpenEvidence’s Series B round of $210 million at a $3.5 billion valuation exemplifies another fast-growing model: medical AI that acts as a decision support layer for physicians. [1][7] Its scale is impressive: more than 40% of U.S. physicians log in daily; platform supports over 10,000 hospitals; and usage surged to over 8.5 million clinician consultations per month—a more than 2,000% year-over-year increase. These growth metrics justify high valuations in platforms with broad adoption and low friction to scale. [1]

Notwithstanding the enthusiasm, certain segments lag. Traditional ‘agentic’ AI—early warning systems, predictive modeling for sepsis or heart failure—are still in early commercialization. IPOs remain scarce for the healthtech sector; many companies are expected to defer going public until 2026 due to regulatory and economic uncertainty. [1]

Strategically, investors are continuing to reward technologies that reduce administrative overhead, integrate into providers’ workflows, or serve critical back-office functions. These are near-term value generators, less risky, and more accountable. On the flip side, companies pursuing more transformational patient-facing AI face longer lead times, higher validation burden, and a tougher regulatory path. The tension between risk and reward here will define the next wave of healthtech winners.

Questions remain around sustainability: Can current growth rates be monetized profitably? What is the behavior of regulatory bodies and payers toward AI tools? And how will pricing pressure evolve as competition intensifies?