Market Outlook
Digital Health Outlook
- The digital health market continued to slide during Q3’24, with global funding totaling $3.3B, the second-lowest quarterly funding level since 2017.
- Despite this decrease in funding, the average global deal size has increased from $11.8M in 2023 to $17.8M through Q3’24. This trend indicates that although risk aversion remains high, investors are placing larger investments on fewer, later-stage ventures.
- We expect this theme of “focused funding” to continue through the final quarter of Q4’24, but investor sentiment for Q1’25 appears optimistic after consecutive rate cuts from the Federal Reserve.
Industry Snapshot
$3.3B global digital health funding (Q3 ’24) — 2nd-lowest since 2017
Average deal size up 51%, from $11.8M (2023) to $17.8M (2024 YTD)
Digital health M&A exits +23% QoQ, led by LetsGetChecked’s $525M acquisition of Truepill
