Digital well being funding is holding regular — enterprise capital is flowing, IPOs are reappearing, and megarounds are again in drive.
Startups on this house have raised $9.9 billion all through the primary three quarters of this 12 months, in line 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 lot of tens of millions of {dollars}. Examples embrace the $550 million spherical raised by value-based kidney care firm Try Well beingthe $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 measurement thus far this 12 months is $28.1 million, in comparison with $20.4 million in 2024.
Rounds totaling $100 million or extra have accounted for practically 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 Outer is anticipated to lift a $875 million Collection E spherical.
The report additionally identified that the Collection B stage appears to have grow to be a hurdle for digital well being firms.
It’s taking longer for startups to succeed in the Collection B stage. The median hole between their Collection 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 Collection B offers has declined sharply, with solely 30 rounds accomplished by way of 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 turning into much less easy, in line with Rock Well being. Many firms are elevating unlabeled rounds between Collection A and B, making it more durable for traders to gauge which startups are really able to scale.
“There’s a set of firms elevating rapidly at excessive valuations — after which there’s everybody else. For these navigating the more durable path, the playbook is to seek out the moat and double down on clear differentiators. We’ve seen firms break by way of after they hit a significant milestone—like touchdown a significant distribution deal, getting FDA clearance or proving business traction — that turns into the hook for the following spherical.” acknowledged Becca Shmukler, accomplice at Million Lives Fund.
In a market the place outsized rounds seize headlines, there are additionally startups that may find yourself thriving by navigating the much less apparent path with focus and proof of worth.
Photograph: Bangon Pitipong, Getty Photos
