Photo: Sarah Grillo/Axios
Digital health investors are buzzing over AI agents as the race to own the broader health care workflow tightens.
Why it matters: Though threats from incumbents loom, VCs hope to cash in on health care's administrative spend, which has drawn the attention of senior Trump appointees.
By the numbers: Funding in both clinical and nonclinical workflow startups totaled $4.2 billion through the first three quarters of 2025, accounting for 42% of all funding deals, per a Rock Health report last month.
- Last year, those categories took in about $3 billion.
How it works: Today, AI agent companies are focused on automating phone calls, prior authorization and scheduling, but many are already looking ahead to compete in the evolving market.
Between the lines: Rebecca Mitchell, managing partner at Scrub Capital, says the agent model makes it possible for VCs to tackle more health care problems.
Yes, but: There are potentially too many prospective investments to choose from.
- Mitchell says her firm has invested in less than 2% of companies that have pitched them in the segment.
- NEA partner Blake Wu adds: "It is certainly a crowded category, and within health care, our team has met at least 50 AI voice startups."
- Investors also say the competition that startups face from incumbents like Salesforce, Epic and OpenAI makes investing treacherous.
What's next: Areas of opportunity for startups where incumbents are less likely to win include the mental health and ambulatory sub-sectors, says LRVHealth managing partner Keith Figlioli.
State of play: In the last month, multiple startups have secured VC funding for AI agents, including Hippocratic AI's $126 million Series C raise at a $3.5 billion valuation.
- There's also been a rush of capital flowing into other AI agents. Phone agents have been popular with Assort Health's $76 million Series B, Hyro's $45 million raise and Confido Health's $10 million Series A.
- Other agent startups, including Arya Health and Popai Health, have also raised this fall.
