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Digital Health Startups Raise $3 Billion In The First Quarter Of 2025

In the first quarter of 2025, U.S. digital health startups secured $3.0 billion across 122 investment or merger and acquisition (M&A) deals, marking a significant increase in funding compared to the previous quarter’s $1.8 billion across 118 deals. The average deal size rose from $15.5 million in the fourth quarter of 2024 to $24.4 million in the first quarter of 2025.

Artificial intelligence (AI) continued to dominate digital health deals, with AI-enabled startups making up 36% of total funding from January to October 2024. This trend persisted into the first quarter . . .

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