Digital Health Startups Surge with $5 Billion in Q1 Funding
MedCity News
|
Contributed by: Kate Gamble
Summary
In the first quarter of 2025, the global digital health sector saw a funding resurgence, attracting $5 billion, the highest since mid-2022, and a significant increase from $3.7 billion in the same period last year. A CB Insights report indicates that the rise in median deal sizes to $6.4 million reflects investors' favoring later-stage startups with regulatory achievements and scalable AI platforms. Additionally, mega-rounds of $100 million or more made up nearly half of the total funding, with AI-focused startups leading these deals, securing eight out of eleven mega-funding rounds, including Isomorphic Labs at $600 million and Truveta at $320 million.