Health tech investors are getting creative with exits in 2025
In 2025, M&A has become the dominant exit route in healthtech, with consolidation viewed as the most realistic path to liquidity rather than traditional IPOs.134
Digital health and healthtech exits are increasingly venture-to-venture acquisitions, with about 70% of 107 M&A deals in H1 2025 involving one VC‑backed company buying another, underscoring portfolio consolidation and strategic scale-ups.1
Healthtech investors are leaning on private‑equity‑style roll‑up strategies, backing platforms that acquire smaller competitors to build larger, more efficient groups and engineer exits at the portfolio level.1
A secondary market for private shares is gaining importance as an alternative form of liquidity, allowing early investors and employees in high‑valued unicorns to sell stakes without a full company exit.1
While IPOs remain difficult, a selective reopening of the public markets has emerged, with Hinge Health (May 2025) and Omada Health (June 2025) listing successfully and signaling that only mature, profitable, AI‑enabled companies are likely candidates.15
Healthtech VC activity is shifting toward “bigger cheques, fewer bets”, with late‑stage round sizes up about 1.6x versus 2024 and median deal sizes for AI‑driven digital health around $27.5 million by May 2025, helping companies fund longer, less linear paths to exit.1
Investors are prioritizing AI‑powered, productivity‑driven solutions that shorten care pathways or cut provider operating costs, which both commands higher valuations and improves M&A attractiveness.134
Provider‑operations startups now attract roughly 40–44% of new healthtech capital, supported by record investment and making them prime targets for both strategic buyers and PE sponsors seeking efficiency gains.34
Healthtech private‑equity exits are on pace to hit record levels in 2025, with projections of around 13 PE exits, reflecting PE funds’ growing role in buying and later selling or re‑listing scaled platforms.4
Across life sciences and healthtech, Big Pharma’s patent cliff and large cash reserves are driving a renewed wave of biotech/medtech M&A and licensing deals, enlarging the pool of potential acquirers and deal structures for healthtech investors seeking creative exits.2
Sources:
1. https://www.galengrowth.com/digital-health-exits-navigating-2025s-shifting-tides-towards-maturity/
2. https://capitalcell.com/en/2025-the-big-year-for-exits-again/
3. https://www.svb.com/trends-insights/reports/healthtech-trends-report/
4. https://www.prnewswire.com/news-releases/record-investment-in-provider-operations-boosts-healthtech-sector-silicon-valley-bank-releases-2025-healthtech-report-302585943.html
5. https://www.hsbcinnovationbanking.com/nz/en/resources/life-sciences-and-healthcare-2025-financing-trends