Digital well being funding is holding regular — enterprise capital is flowing, IPOs are reappearing, and megarounds are again in pressure.
Startups on this house have raised $9.9 billion all through the primary three quarters of this 12 months, in keeping with new knowledge from Rock Well being. The third quarter yielded $3.5 billion raised throughout 107 offers.
Throughout this previous quarter, deal exercise dipped. There have been 107 offers — down from 120 within the second quarter and 124 within the first quarter — however the rounds that did shut have been bigger on common.
Some startups closed funding rounds totaling a whole bunch of hundreds of thousands of {dollars}. Examples embody the $550 million spherical raised by value-based kidney care firm Attempt Well being, the $400 million spherical raised by pharmacy profit supervisor Judi Well being (previously CapitalRx), and the $243 million spherical raised by AI-powered documentation startup Atmosphere.
The common digital well being deal dimension to this point this 12 months is $28.1 million, in comparison with $20.4 million in 2024.
Rounds totaling $100 million or extra have accounted for almost 40% of all digital well being funding this 12 months. Rock Well being’s report famous that one other exceptionally massive spherical is probably going coming quickly, as wearable firm Oura is predicted to lift a $875 million Sequence E spherical.
The report additionally identified that the Sequence B stage appears to have develop into a hurdle for digital well being corporations.
It’s taking longer for startups to succeed in the Sequence B stage. The median hole between their Sequence A and B rounds has stretched to 27 months this 12 months, up from 17 months for the 2023 cohort. In the meantime, the variety of Sequence B offers has declined sharply, with solely 30 rounds accomplished via the third quarter of 2025 — roughly half the annual quantity seen over the previous 4 years.
The digital well being fundraising market seems to be evolving, with the trail to success changing into much less simple, in keeping with Rock Well being. Many corporations are elevating unlabeled rounds between Sequence A and B, making it more durable for buyers to gauge which startups are actually able to scale.
“There’s a set of corporations elevating shortly at excessive valuations — after which there’s everybody else. For these navigating the more durable path, the playbook is to search out the moat and double down on clear differentiators. We’ve seen corporations break via once they hit a significant milestone—like touchdown a significant distribution deal, getting FDA clearance or proving industrial traction — that turns into the hook for the following spherical.” said Becca Shmukler, associate at Million Lives Fund.
In a market the place outsized rounds seize headlines, there are additionally startups that can find yourself thriving by navigating the much less apparent path with focus and proof of worth.
Picture: Bangon Pitipong, Getty Photographs
