AI isn’t just minting frontier model labs, it’s dragging forgotten venture sectors back into the game.
Healthtech, cybersecurity, biotech, and enterprise SaaS all saw a decisive pickup in early-stage activity in Q4 2025, driven by AI-native startups that look very different from the last cycle’s darlings, according to PitchBook’s latest Emerging Tech Indicator (ETI), which tracks pre-seed through Series B deals done by the top 15 VC firms globally.
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.
Function Health, a subscription service that gives members access to a battery of lab tests and personalized insights, raised a $300 million Series B at a $2.5 billion valuation—an 11.5x step-up from its June 2024 Series A. On the enterprise side, Paradigm Health pulled in $78 million for clinical trial management software, while Valerie Health raised $30 million to automate front-office workflows with AI.
