Market Outlook
Digital Health Outlook
- The digital health market remained active in Q1’25, with global equity funding reaching a multi-year high of $5.3B — a 47% increase quarter-over-quarter. While the total deal count declined modestly to 300 completed transactions (an 8.5% decrease from Q4’24), the rise in funding highlights a continued shift toward larger, more strategic investments, favoring scaled or high-growth digital health companies — a trend consistent with 2024 activity.
- This theme of “focused funding” continued through the first quarter of 2025, but investor sentiment for the second half of 2025 appears optimistic.
- The U.S. market share of funding increased from 54% in Q4’24 to 55% in Q1’25, indicating a modest yet notable uptick in investor interest, potentially driven by improving market sentiment and renewed confidence in the sector.
Industry Snapshot
$5.3B
Global equity funding in Q1 2025
51
M&A Digital Health exits in Q1 2025
$17.8M
Average global deal size in 2024
