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The AI & Health Tech Revolution: What’s Coming Next?
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Imagine a world where your doctor can predict your health risks years in advance, tailoring treatments specifically to your unique genetic makeup. Sounds like science fiction? Think again. the convergence of AI and health tech is rapidly transforming healthcare, and the future is closer than you think.
European Startups Leading the Charge
While Silicon Valley frequently enough dominates tech headlines,Europe is quietly becoming a powerhouse in the AI and health tech space. in the first quarter of 2025, European startups attracted unprecedented global interest, with international investors accounting for over 40% of funding. This surge in investment signals a revitalized confidence in European innovation and its potential to disrupt the global healthcare landscape.
Without the infusion of capital into AI ventures, overall European investment would have taken a 10% hit, underscoring AI’s critical role in driving economic growth and technological advancement [[1]].
The Draghi Report Effect
This surge in European entrepreneurship is partly fueled by initiatives like the 2024 Draghi Report, which emphasizes enhancing startup financing and improving competitiveness across the continent. The report’s focus on fostering innovation is clearly paying dividends, attracting notable investment and nurturing a new generation of european tech leaders.
Health Tech’s Dominance: A $4.3 Billion Quarter
Health tech is not just participating in the AI revolution; it’s leading it. The sector secured a staggering $4.3 billion in funding in the first quarter of 2025, marking a 65% year-over-year increase. This marks the fourth consecutive quarter that health tech has topped the investment charts, solidifying its position as a prime target for venture capitalists and strategic investors alike.
Major deals are driving this growth, including:
- Isomorphic Labs: $600 million investment in AI-driven drug discovery.
- Verdiva Bio: $411 million investment in next-generation obesity therapies.
- Neko Health: $260 million investment in preventative healthcare.
AI-Driven Drug Discovery: The Holy Grail of Healthcare
The $600 million investment in Isomorphic Labs highlights the growing excitement around AI’s potential to revolutionize drug discovery. Traditional drug advancement is a lengthy and expensive process, often taking years and billions of dollars to bring a single drug to market. AI promises to accelerate this process by:
- Analyzing vast datasets of biological and chemical facts.
- Predicting the efficacy and safety of potential drug candidates.
- identifying novel drug targets and mechanisms of action.
Imagine AI algorithms sifting through millions of potential drug compounds, identifying the most promising candidates with unprecedented speed and accuracy. This could dramatically reduce the time and cost of drug development, leading to faster access to life-saving medications for patients in need.
Combating Obesity: A $411 Million Bet on biotech
Verdiva Bio’s $411 million investment underscores the urgent need for innovative solutions to combat the global obesity epidemic. Obesity is a major risk factor for a wide range of chronic diseases, including heart disease, diabetes, and cancer. Next-generation obesity therapies promise to offer more effective and sustainable weight loss solutions than current treatments.
These therapies may include:
- Novel drugs that target specific metabolic pathways.
- Gene therapies that alter the body’s response to food.
- Personalized nutrition plans based on an individual’s genetic makeup.
With obesity rates continuing to rise in the United States and around the world, investments in obesity biotech are likely to remain strong in the coming years.
Preventative Healthcare: Neko Health’s $260 Million Vision
Neko Health’s $260 million investment in preventative healthcare reflects a growing shift towards proactive health management. instead of simply treating diseases after they occur, preventative healthcare aims to identify and mitigate risk factors before they lead to illness.
Neko Health’s approach may involve:
- Advanced imaging technologies to detect early signs of disease.
- AI-powered risk assessments to identify individuals at high risk.
- Personalized wellness programs to promote healthy lifestyles.
By investing in preventative healthcare, we can not only improve individual health outcomes but also reduce the overall burden on healthcare systems.
The Rise of “Biology GPT” and Digital Twins
Jean-Philippe Vert, Ph.D., co-founder of bioptimus, envisions a future where “foundation models” enable us to ask new “what-if” questions in biology. Imagine AI predicting what happens to a cancer cell when we perturb it, paving the way for personalized
The AI & Health Tech Revolution: A Conversation with Dr. Aris Thorne
time.news: Dr.Thorne, thanks for joining us today. This piece highlights a real boom in AI and health tech investments, particularly in Europe. What are your initial thoughts on this surge?
Dr. Aris Thorne: It’s very exciting and frankly, overdue. We’ve been talking about the potential of AI in healthcare for years, and now we’re seeing meaningful capital flow to make that potential a reality. The focus on European startups is particularly interesting.For a while, Silicon Valley dominated the conversation around innovation, but Europe is catching up, fueled by a supportive regulatory environment and, as the article mentions, initiatives like the Draghi Report.
Time.news: The article points out that european startups attracted unprecedented global interest in the first quarter of 2025, with a large percentage of funding coming from international investors. Why Europe and why now?
Dr. Aris Thorne: Several factors are at play. Firstly, Europe has a strong foundation in scientific research and a highly skilled workforce. Secondly, compared to the US, Europe sometimes offers a more streamlined regulatory pathway for new technologies, particularly in areas like digital health. And thirdly, the Draghi Report, as highlighted, provides a very deliberate strategic boost to fostering innovation on the continent, that makes it more attractive. Finally from a macro outlook, diversification of portfolios is key so looking at other geographies is significant.The statistic here that cross-border investments in Europe have reached their highest quarterly figure as 2011 further highlights this.
Time.news: The report mentions that without AI investment, overall European investment would have taken a 10% hit. That paints a clear picture of AI’s importance. Health tech seems to be leading the charge. The sector secured $4.3 billion in funding in Q1 2025. What’s driving that dominance?
dr. Aris Thorne: Health tech addresses a basic human need. Everyone wants to live a longer, healthier life. The potential return on investment in this space is enormous,both financially and in terms of societal impact. Plus, the convergence of AI capabilities with areas like drug finding, personalized medicine, and preventative care creates a perfect storm for innovation and investment. The $4.3 billion figure is a testament to that.
Time.news: Three companies are specifically mentioned: Isomorphic Labs (AI-driven drug discovery), Verdiva Bio (obesity therapies), and Neko Health (preventative healthcare). Why are these areas receiving so much attention?
dr. Aris Thorne: Each addresses a major challenge in healthcare. Isomorphic Labs is tackling the inefficiency and cost of customary drug discovery. If AI can truly accelerate drug development, we’re talking about revolutionizing how we create new treatments for everything from cancer to alzheimer’s. Verdiva Bio is focused on a global obesity epidemic that is driving countless health issues and straining healthcare systems. There is clearly an urgent need for more effective treatments. Neko Health represents a shift towards preventative care,which is ultimately the most sustainable approach to healthcare. Addressing risk factors early can prevent diseases from developing in the first place, leading to healthier populations and lower healthcare costs.
Time.news: The piece calls AI-driven drug discovery the “Holy Grail of Healthcare.” Is that hyperbole or are we really on the cusp of a breakthrough?
Dr. Aris Thorne: It’s certainly ambitious language, but not entirely unfounded. The potential is there. AI can analyze massive datasets of biological and chemical information, identify patterns that humans might miss, and predict the efficacy and safety of drug. However, we need to temper expectations with reality. AI is a tool, not a magic bullet. We still need human expertise and rigorous clinical trials to validate its findings. But the early results are promising, and the level of investment reflects that optimism.
Time.news: What about the other specific investments, like Verdiva Bio in obesity and Neko Health in preventative care? What are the key technologies or approaches to watch in those areas?
Dr.Aris Thorne: In obesity, we’re seeing a move towards more targeted therapies that address the underlying metabolic issues that contribute to weight gain. This includes novel drugs,potential gene therapies,and personalized nutrition plans based on individual genetics. For preventative health, we’re seeing a lot of focus on advanced imaging technologies, AI-powered risk assessments, and personalized wellness programs. The key is to identify individuals at high risk of developing diseases and intervene early with tailored interventions.
Time.news: The article also mentions the concept of “Biology GPT” and digital twins. Can you explain what those are and their potential impact?
Dr. Aris Thorne: “Biology GPT” refers to the idea of creating large language models trained on vast amounts of biological data, allowing us to ask “what-if” questions and predict the outcomes of various interventions. A digital twin is a virtual portrayal of an individual,incorporating their genetic information,medical history,and lifestyle data. The combination of these two technologies could revolutionize personalized medicine, allowing us to predict how a patient will respond to a particular treatment and tailor the therapy accordingly. Imagine predicting what happens when we alter something in a tumor cell, as a notable example. That would be a huge step forward.
Time.news: the article offers a tip for American investors looking to capitalize on these trends: partner or invest in European health tech startups. Any other practical advice for companies or individuals hoping to get involved in this AI and health tech revolution?
Dr. Aris Thorne: Absolutely. Firstly, keep learning. The field is evolving rapidly, so stay up-to-date on the latest advancements in AI and health tech. Secondly, network and collaborate. Attend industry conferences, connect with researchers and entrepreneurs, and build relationships. And thirdly, think critically. AI is a powerful tool, but it’s not a substitute for human judgment. Always validate AI-driven insights with your own expertise and experience.For individuals looking to enter the field, consider interdisciplinary studies – combining AI/ML with biology, medicine, or public health. This unique skillset will be highly sought after.