A public-data market report. Every figure below is drawn from press releases, venture-arm websites, SEC-related filings and named-reporter coverage — nothing here is confidential and no relationship is implied.
For most of the last decade the smart-money question in healthcare was where the software was going. In 2025 the answer changed. Capital rotated hard toward MedTech — the devices, diagnostics and imaging-AI that sit at the point of care — and the people writing the checks were not only traditional venture funds. They were the health systems themselves, their in-house venture arms and the bulge-bracket banks that used to only advise from the sidelines.
This report reads the public record. It maps the health-system venture arms that are most active in MedTech and imaging, the size ranges their deals run, the transactions that have already become market leaders and the way Wall Street and banking teams are now sourcing what comes next. For owners weighing their own options, the takeaway is simple: the market is deep, it is disciplined and it rewards companies that arrive prepared. That readiness is exactly what our capital and transactions work is built to create.
The market, by the numbers
The headline is scale. Across the reporting bodies that track it, 2025 was a record or near-record year for healthcare and MedTech capital — and the money concentrated in larger, more mature rounds rather than spreading thin.
Sources: Bain & Company; PitchBook via Align Business Advisory.
The digital-health picture is just as strong. Rock Health put 2025 US digital-health venture funding at $14.2 billion across 482 deals — a 35 percent jump over 2024 and the highest since 2022 — with the average deal size climbing to $29.3 million and mega-deals over $100 million making up 42 percent of all dollars raised (Rock Health; Becker's Hospital Review). EY's Pulse report showed the same concentration in MedTech itself: average venture round size rose 126 percent year over year to $37 million even as the number of rounds fell 47 percent, on industry revenue of $584 billion (EY Pulse of the MedTech Industry 2025). Broader healthcare venture investment reached $60 billion across more than 2,100 deals, its strongest showing since 2022 (HSBC Innovation Banking).
Fewer, larger checks — into companies that arrive ready.
Who is investing: the health-system venture arms
The most distinctive feature of this cycle is how much of the capital originates inside health systems. These are not passive endowment allocations — they are strategic venture arms writing direct checks into the devices, diagnostics and imaging tools their own clinicians will use. That is precisely the terrain our health-system advisory practice lives in.
Imaging and surgical navigation
Imaging-AI and surgical navigation drew unusually deep strategic participation. MediView XR closed a $24 million Series A in October 2025 for augmented-reality surgical navigation, led by GE HealthCare with Cleveland Clinic and Mayo Clinic among the participants (PR Newswire). UPMC Enterprises spotlighted Ultromics' $55 million Series C for cardiac-imaging AI (UPMC Enterprises 2025 Annual Report), and Advocate Health led a roughly $10.5 million Series A for Segmed, an imaging-AI data platform (Becker's Hospital Review). In radiology-AI specifically, Rad AI drew an $8 million strategic add-on from Memorial Hermann, Advocate Health, Corewell Health and Atlantic Health System (CB Insights).
The largest and longest-running arms
Ascension Ventures manages more than $1 billion on behalf of 13 health-system limited partners and writes $10–20 million checks across device, diagnostics and health-IT companies (Ascension Ventures). Mayo Clinic Ventures has helped form 274 startups, deploying $281 million and generating $903 million in returns (Becker's Hospital Review). UPMC Enterprises committed to investing $1 billion in life sciences after an earlier $800 million that returned $1.5 billion (The Wall Street Journal). Kaiser Permanente Ventures has backed more than 70 companies since inception, including publicly traded iRhythm and Health Catalyst (KPV portfolio).
Newer and fast-moving arms
Cleveland Clinic Innovations has generated more than 40 spinoffs and backed intra-operative navigation company Centerline Biomedical's $10.78 million Series C (Cleveland Clinic Innovations). Providence Ventures runs $300 million across surgical and imaging names including Bolder Surgical and Gauss Surgical (Becker's Hospital Review). Northwell Holdings has made roughly 40 investments and stood up a $100 million AI joint venture (Global Corporate Venturing). Intermountain Ventures added $200 million in new capital in 2025 and counts three portfolio IPOs plus the $7.75 billion ServiceNow acquisition of Armis among its outcomes (Waveup fund profile). Sutter Health joined a $150 million round for radiology-AI leader Aidoc (PR Newswire).
The transactions that became market leaders
Investment is a bet on an exit. Several MedTech and diagnostics companies moved from venture-backed to market-defining in this cycle — and the pattern is instructive for any owner thinking about where a business can go.
- PathAI — the pathology-AI company, backed by Kaiser Permanente Ventures in its $165 million Series C, agreed to be acquired by Roche for up to $1.05 billion ($750 million upfront plus milestones), announced in May 2026 (Roche; Reuters).
- Aidoc — radiology-AI, grew from a $27 million Series B in 2019 to more than $500 million raised, capped by a $150 million Series E led by Goldman Sachs Growth Equity in April 2026; it now runs across roughly 2,000 hospitals with 31-plus FDA clearances (Aidoc; IntuitionLabs).
- Medline Industries — the medical-supply distributor's December 2025 Nasdaq IPO raised $6.26 billion, the largest global IPO of the year, closing up 41 percent on debut and valuing the company above $50 billion (CNBC; Medline Newsroom).
- Omada Health — historically backed by Kaiser Permanente, Providence and Intermountain venture arms, IPO'd on Nasdaq in June 2025, raising $150 million and rising 42 percent on its first day (Reuters).
- BillionToOne — the molecular-diagnostics company raised $273.1 million in its November 2025 IPO, pricing above range at a roughly $2.6 billion valuation (Reuters).
- Assurex Health — a Mayo Clinic Ventures pharmacogenomics company acquired by Myriad Genetics for $225 million upfront plus up to $185 million in milestones (Twin Cities Business).
The exit was written into the preparation, not discovered at the finish line.
How Wall Street and banking teams are sourcing what's next
The most consequential shift is who is at the table. Banks that historically advised on MedTech deals are now investing directly in them, and their public commentary makes the thesis explicit.
Goldman Sachs led that $150 million Aidoc round through its growth-equity arm — a bulge-bracket bank moving from advisory into direct MedTech-AI ownership (Aidoc). At J.P. Morgan's 44th annual Healthcare Conference in January 2026, Jeremy Meilman, its Global Head of Healthcare Investment Banking, told the market the bank is "set for an active year ahead — biopharma innovation, medtech and life science breakthroughs, and AI transforming healthcare services," anticipating strong momentum "for both M&A and the capital markets across the entire healthcare landscape" (J.P. Morgan). The same bank tracked $26.6 billion of MedTech M&A across 37 deals in Q1 2026 alone (J.P. Morgan Q1 2026 MedTech deck).
The underwriting desks tell the same story. Goldman Sachs, Morgan Stanley, BofA Securities and J.P. Morgan led the $6.26 billion Medline IPO among more than 40 underwriters (CNBC), Morgan Stanley, Goldman Sachs and J.P. Morgan book-ran the Omada IPO (Omada Health), and J.P. Morgan, Piper Sandler, Jefferies and William Blair underwrote BillionToOne's (Reuters). Below the bulge bracket, boutique and middle-market banks now maintain named MedTech coverage groups — Baird's healthcare group recently added a managing director focused specifically on medical technology (Middle Market Growth).
Why the money is rotating to MedTech
The rationale is consistent across the primary sources. Bain frames MedTech's momentum as investors applying "proven value-creation playbooks" — revenue growth, margin expansion, multiple expansion and downside-risk management (Bain & Company). The AI thesis reinforces it: AI-enabled companies captured 54 percent of 2025 US digital-health funding, up from 37 percent a year earlier (HIT Consultant). And Medline's blockbuster debut is read by industry watchers as proof that "public markets have a massive appetite for high-quality medtech assets," reopening an IPO window that had been shut for three years (MedDeviceGuide).
What it means for owners
Record capital does not lower the bar — it raises it. Fewer, larger checks flow to companies that can show clean structure, defensible economics and a credible path to scale. The systems and banks in this report are disciplined buyers; they reward preparation and penalize surprises. For an owner, the work of getting ready — governance, reserves, protected continuity and a transaction file that survives diligence — is the difference between meeting this market and missing it. That preparation is where our fiduciary and estate discipline meets our capital and transactions work, so the value you have built is aligned and protected before it is ever taken to market.
← Back to InsightsThis report is a market summary compiled entirely from publicly available sources and is educational only. Company and deal references are drawn from public announcements and do not imply any client, advisory or investment relationship with Northview Health Partners. Nothing here is an offer, solicitation or legal, tax or investment advice. Figures reflect the cited sources as published and may change.