Market Overview
Digital Health Outlook
- After a strong rebound in Q1’24, U.S. digital health funding fell 17.9% in Q2’24 as investors continue to exhibit higher levels of risk aversion than prior years. This trend played out globally as well, with total sector funding dropping 25.6% QoQ to $2.9B.
- Although funding decreased substantially, the median U.S. deal size increased 63% from FY23 to 1H 2024. Again, this result played out globally, with the average global deal size rising 40% from 2023 to $16.7M in 1H 2024. This trend indicates that although risk aversion is high, investors are willing to write sizable checks for companies that check key boxes, such as a clear path to profitability.
- Among the quarter’s top deals were Innovaccer’s $250M Series F round, led by Kaiser Permanente, and Talkiatry’s $130M Series C round, led by Andressen Horowitz and Left Lane Capital.
Industry Snapshot
$2.9B
Global digital health funding in Q2 2024
17.9%
Decline in U.S. digital health funding in Q2 2024 as investors show higher risk aversion
63%
Median U.S. deal size increase from FY23 to 1H 2024
$16.7M
Average global deal size in H1 2024
