Investors bet big on AI for health diagnostics

Led by some of the world's largest biopharma companies and tech-focused venture capitalists, these investments are backing efforts to speed drug discovery, improve tests and treatments, and further medical research. For now, most of the investment is focused in the diagnostics/tools (Dx/Tools) sector. A Silicon Valley Bank analysis last month found that 44 venture-backed deals raised $2.2 billion between 2015 and the first half of 2017 for Dx/Tools companies that use AI/ML as part of their underlying technology. For our analysis, SVB segmented Dx/Tools into three subsectors: Dx Tests (yes/no test results), Dx/Tools Analytics (actionable data analytics to help direct treatment), and R&D Tools (research equipment and services for biopharma and academia). These deals include multi-$100 million financings for three companies: GRAIL, Guardant Health, and Human Longevity.