Market Outlook
Digital Health Outlook
- The digital health market continued to slide during 2024, with deal count falling for the 3rd consecutive year totaling 1,225 deals completed, a 23% YoY decrease.
- Despite this decrease in deal count, total global equity funding has increased from $15.1B in 2023 to $15.6B in 2024 representing a 3.3% increase YoY. This trend reflects a shift toward larger, strategic investments, favoring scaled or high-growth digital health companies.
- We expect this theme of “focused funding” to continue through the final quarter of Q1’25, but investor sentiment for Q2’25 appears optimistic after consecutive rate cuts from the Federal Reserve.
- U.S. market share funding increased from 52% in Q3’24 to 54% in Q4’24, indicating a modest yet notable uptick in investor interest, potentially driven by improving market sentiment and renewed confidence in the sector.
- Among the quarter’s top fundraising deals were Oura’s $200M Series D round, led by DexCom, Inc. (NASDAQ: DXCM) and Enveda’s $130M Series C round, led by FPV and Kinnevik (OM: KINV B)
Industry Snapshot
1,225
Global digital health deals in 2024
$15.6B
Equity funding (2024) up 3.3% YoY
$17.8M
Average global deal size in 2024
