"Healthtech is the clearest example of the shift. Health and wellness deals jumped to $678 million across 23 transactions in Q4, more than double the previous eight-quarter average of $332 million and 16 deals. The money is flowing into two buckets: consumer-facing "know your body" platforms and AI tools that make providers' operations more efficient."
"Venture dollars are also returning to brick-and-mortar care, but with an AI angle. Radial Health, a network of mental health clinics, closed a $50 million Series A, and obesity-care chain Knownwell raised $26.1 million. Together, those deals suggest investors are moving away from popular telehealth bets and toward "AI plus services" models that plug into existing care infrastructure rather than trying to replace it."
"Aside from health and wellness, cybersecurity reached a new high. Cyber deals hit a record $643.1 million in Q4 across 15 transactions, with average valuations in the segment jumping to $273.4 million-more than double the previous eight-quarter average of $129.1 million. Ten of those 15 were Series A rounds."
AI-native startups are driving a resurgence in venture capital across previously underperforming sectors. Healthtech experienced the most dramatic shift, with Q4 2025 deals reaching $678 million across 23 transactions—more than double the previous eight-quarter average. Investment flows into consumer-facing diagnostic platforms and AI-powered provider efficiency tools. Notable deals include Function Health's $300 million Series B and enterprise solutions like Paradigm Health and Valerie Health. The sector is shifting toward "AI plus services" models that integrate with existing care infrastructure rather than replacing it. Cybersecurity also reached record highs with $643.1 million in Q4 funding across 15 transactions, with average valuations more than doubling to $273.4 million. This represents a fundamental reallocation of venture capital toward AI-enhanced solutions in traditionally overlooked sectors.
#ai-native-startups #healthtech-funding #cybersecurity-investment #venture-capital-allocation #enterprise-saas
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