Bessemer Ventures on the State of Health Tech in 2025: AI Reigns Supreme, but Resilience Is Key
Steve Kraus and Sofia Guerra of Bessemer Venture Partners recently joined us for a Fireside Chat to discuss the trends and predictions outlined in their second-annual “State of Health Tech” report.
Produced by Nicole Kinsey
The future of health tech is unfolding before our eyes, driven by advancements in artificial intelligence (AI) and a renewed focus on measurable outcomes. To gain valuable insights, we hosted a Fireside Chat with Steve Kraus and Sofia Guerra of Bessemer Venture Partners, featuring key takeaways from their second-annual "State of Health Tech" report. Held in front of a virtual audience from our Health Moonshot Communities, Kraus and Guerra also answer questions from the participating community members, offering insights into the current landscape and future trends.
Quick Takeaways and Practical Advice for Founders
Prioritize AI: AI is no longer a "nice-to-have" – it's becoming essential. Startups leveraging AI in innovative ways are attracting significant investor attention. If your startup doesn't leverage AI, consider how it can be integrated to enhance your product or service.
Build a Strong Foundation: Focus on a well-defined business model, align incentives, and prioritize high-impact KPIs.
Focus on Outcomes: Investors are increasingly prioritizing companies that demonstrate clear and measurable outcomes, particularly those that translate to improved patient care and reduced healthcare costs. Founders need to obsess over creating tangible, measurable outcomes that demonstrate value to stakeholders.
Resilience Is Crucial: The past few years have been challenging for the health tech sector. However, a new cohort of companies is emerging, embracing adaptability to navigate market fluctuations, demonstrating resilience and a focus on efficient growth.
The "Why Now" Factor: Founders need to articulate a compelling "why now" story – what unique market opportunity exists today that their company is uniquely positioned to capitalize on?
Founder-Market Fit: Investors are drawn to founders with a proven track record and a deep understanding of the market they are entering.
Collaborate and Partner: Leverage existing stakeholders and build a strong network to navigate the complexities of the healthcare ecosystem.
Highlights from the Fireside Chat
Fundraising and Macro Trends for 2025
As we step into 2025, fundraising remains a top priority for health tech startups. Investors like Bessemer Ventures are searching for companies that demonstrate resilience, efficiency, and a clear path to profitability. Their State of Health Tech report emphasizes that while AI reigns supreme, startups must align with the “why now” narrative and focus on delivering outcomes that matter to stakeholders across the healthcare ecosystem.
The Rise of AI in Health Tech
AI is at the forefront of health tech innovation. During the chat, Guerra highlights the emergence of “AI services” — companies combining technology with human expertise to automate back-office tasks for stakeholders like health systems and payers. However, the discussion also acknowledges a critical distinction between AI-first companies and those using AI as an enabler.
Key takeaway: Startups leveraging AI to solve pressing healthcare challenges are catching investor attention, but those addressing broader systemic issues are equally vital.
Advice for Founders: Thrive in 2025
For early-stage founders, the path to success lies in building a well-oiled business model, aligning incentives, and focusing on high-impact KPIs. Guerra encourages entrepreneurs to treat their business as a system of interconnected levers, optimizing each piece to drive outcomes and attract funding.
Meanwhile, Kraus reminds founders to remain grounded in their mission. “Obsess over outcomes,” he advises, noting that this clarity will attract investors, customers, and employees alike.
Practical Lessons
Outcomes Are King
Kraus emphasizes that startups must focus on creating tangible outcomes. Whether it’s reducing costs, improving patient care, or delivering a clear ROI, health tech companies should articulate their value in measurable terms.Adaptation and Resilience
Both investors underscore the importance of navigating economic and market fluctuations with a long-term vision. Startups excelling in 2025 will be those capable of thriving despite challenging conditions, aided by strategic focus and efficient operations.The Power of “Why Now”
Whether AI-driven or not, companies need to convincingly answer why their solution is timely and essential. This includes aligning with market tailwinds such as regulatory changes, demographic trends, or technological advancements.
Looking Ahead: A Collaborative Vision for Health Tech
The Fireside Chat wraps with audience questions, highlighting areas like brain health, longevity, and regulatory tailwinds. For founders navigating uncharted territory, Kraus and Guerra emphasize the value of collaborative partnerships, leveraging existing stakeholders, and iterating on business models to secure their place in the health tech revolution.
The future of health tech presents both challenges and immense opportunities. By focusing on innovation, demonstrating resilience, and delivering impactful outcomes, founders can navigate the evolving landscape and contribute to a healthier future.
As Kraus aptly concludes, “Health tech entrepreneurship is hard, but the outcomes make it worthwhile. Here’s to a thriving 2025.”
Listen or watch the full Fireside Chat for a deeper dive into the insights from Bessemer Ventures and strategies for building the future of health tech.
Listen to the full Fireside Chat on StartUp Health NOW
Watch the Fireside Chat on StartUp Health TV
About Steve Kraus:
Steve Kraus is a partner at Bessemer in the Cambridge office and a world-renowned healthcare investor. He is the author of Bessemer’s 10 Laws of Healthcare, Benchmarks for Growing Health Tech Businesses, and co-host of the podcast Heart of Healthcare. Kraus currently sits on the boards of Bright Health Group, Headspace Health, Groups, Qventus, AspenRx, HouseRx, Oshi Health, Folx Health, Mural Health, and Alcresta.
About Sofia Guerra:
Sofia Guerra is a vice president at Bessemer Venture Partners, where she invests in seed to growth healthcare and life sciences companies. She is the co-author of State of Health Tech report, Benchmarks for Growing Health Tech Business, and How to Scale Health Tech Businesses to $100M and Beyond, a study of 100+ best-in-class companies to understand key metrics relevant for scalability in healthcare software and tech-enabled services.
Disclaimer: Summary provided with support from AI for informational purposes only and does not constitute financial or investment advice.
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