Dive Temporary:
- Digital well being startups raked in additional enterprise capital funding within the first half of the yr, signaling the market is stabilizing following pandemic-era funding volatility, based on a report revealed Monday by Rock Well being.
- U.S.-based digital well being corporations raised $6.4 billion within the first half of 2025, rising modestly from $6 billion throughout the identical interval final yr and $6.2 billion in 2023, the enterprise capital agency and consultancy stated.
- Synthetic intelligence contributed to the enhance. Startups that used AI as a core a part of their choices made up a majority of digital well being enterprise capital funding for the primary time within the first half, accounting for 62% of the interval’s funding complete.
Dive Perception:
The primary half of 2025 included some key developments that hinted the digital well being sector — which noticed record-breaking funding in 2021 adopted by a funding stoop lately — is seeing some momentum once more, based on Rock Well being.
For instance, digital well being corporations raised $3.4 billion in enterprise funding within the second quarter alone, in contrast with the common of $2.6 billion every quarter for the reason that first quarter in 2023.
The sector noticed fewer offers within the first half, notching simply 245 transactions in 2025 in contrast with final yr’s 273. Nevertheless, even with a decrease variety of transactions, the common deal measurement grew to $26.1 million from $20.4 million final yr as buyers poured more cash into late-stage rounds, based on Rock Well being.
Digital well being sees modest funding bump in H1
U.S. digital well being funding 2019 – H1 2025
Startups touting AI merchandise additionally contributed to the funding improve. On common, AI-enabled corporations raised $34.4 million per spherical, considerably bigger than the $18.8 million raised by their non-AI counterparts.
Funding rounds by these corporations made up the lion’s share of mega-deals, or fundraises value over $100 million, as properly. General, the primary half of 2025 included 11 mega-rounds, on observe to exceed the 17 giant raises seen by 2024. 9 of the mega-rounds went to AI startups.
Public exits tick up after digital well being dry spell
Accomplished IPOs and SPACs 2021 – H1 2025
In the meantime, after a protracted dry spell of digital well being public exits, the sector noticed some vibrant spots within the first half of the yr.
Digital musculoskeletal firm Hinge Well being and power situation administration agency Omada Well being accomplished preliminary public choices in Might and June, respectively, in constructive indicators for the business’s almost dormant IPO market — simply two digital well being corporations notched public exits previously three years, based on Rock Well being.
Nonetheless, most corporations are exiting by mergers and acquisitions. Greater than 100 M&A offers closed within the first half this yr, setting the sector on the right track to considerably outstrip the 121 digital well being purchases recorded final yr.
