March 13, 2025

What’s up, doc?

Hi there, 

Here is this week’s Hot or Not.

Hot: Generative AI in healthcare

How is genAI tackling soaring costs and staffing shortages/burnout in healthcare?

Clinical documentation tools, which use genAI to automatically generate medical notes during patient visits, are drawing particularly strong attention.

They secured 4 of healthcare’s 5 largest genAI deals last year while simultaneously gaining significant commercial traction — and this momentum has carried into 2025.

Abridge raised the largest deal in 2024 and followed this with a $250M Series D raise just last month.

Meanwhile, it forged business relationships with 14 health systems last year and has already worked with several more in Q1’25.

Dig deeper into how genAI is disrupting healthcare (and life sciences) in our recently published market map.

Not: Legal departments x genAI

We surveyed 50 senior strategy leaders about their genAI adoption by department. 

Legal comes in last place. Respondents didn't report any active genAI deployments in their legal departments. 

The potential to streamline lawyers’ workflows in areas like legal research, document summarization, and contract review continues to drive activity in the legal AI agents & copilots market. 

Harvey, for example, raised $300M at a $3B valuation last month and introduced agents earlier this week.

Hot: 2025 insurtech predictions

AI is rapidly reshaping insurance, from underwriting to disaster response.

For insurers, the question isn’t if they should adopt AI — it’s how fast. 

Based on CB Insights data, we expect 6 major trends to redefine the insurance space in 2025. Here are 3 of them: 

• France becomes the insurtech capital of the EU — Dealmaking to France-based insurtechs, combined with the country’s broader genAI innovation, will outpace other EU nations.
• Auto insurers drive more telematics consolidation — Insurers will embrace tech M&A to strengthen connected vehicle capabilities and prepare for autonomous driving.
• Breakthroughs in AI weather prediction reduce catastrophe losses — Advanced forecasting models will enable insurers to better anticipate and mitigate losses from extreme weather events.

Explore all 6 of our key predictions for how insurance will evolve in 2025.

Not: Northvolt

The EV sector is having a cold spell. 

Battery maker Northvolt just filed for bankruptcy in its native Sweden, a year after raising $1.2B.

The company sought US bankruptcy protection in November, but its attempts to find new partners and regain financial stability fell through.

It’s the latest in a string of high-profile collapses, highlighting the sector’s steep manufacturing costs. 

Electric van maker Arrival, which entered administration early last year, officially shut down operations this week after a failed sale process.

And investor appetite is fading fast — EV tech deals plunged 61% YoY in 2024, the steepest drop on record. 

Check out our State of Climate Tech report for a deeper look at the challenges reshaping the EV market.

The +1

Bye bye pie. We’ve seen so many (too many) of these over the years.

I love you.

Anand

@asanwal 

Co-Founder & Exec Chair

P.S. What’s in store for tech M&A in 2025? Our analysts will reveal their predictions on March 18 — register today to join them.

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