Startups in the digital health sector raised $5 billion in funding in the first quarter of this year, marking the industry's highest total investment since the second quarter of 2022, according to a recent report released by CB Insights. By comparison, digital health startups raised only $3.7 billion in the first quarter of last year.
Here are three of the most famous findings from the report about the financial rebound for digital health.
The transaction size is getting bigger and bigger
In the first quarter of 2025, the median digital health fund transactions increased to $6.4 million. Compared with the $5.4 million transaction size during 2024.
This trend represents a “preference for late-stage startups for digital health investors
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It is also worth noting that giant startups (total $100 million or more) account for half of the total digital health funding in the first quarter. These 11 giant rebates totaled US$2.5 billion.
AI will only get hotter
AI-focused digital health startups received eight of the 11 big deals that took place in the first quarter.
These include the $600 million round of Isomorphic Laboratory raised in March, the $320 million round of Truveta raised in January, the $275 million round of Innovaccer raised in January, and the $250 million round of Abridge raised in February.
Overall, AI-centric digital health startups generated revenue of $3.6 billion, accounting for 60% of total funding for the quarter.
New unicorns are emerging
Six digital health startups gained unicorn status in the first quarter of this year, meaning their valuation reached $1 billion or more. This has surpassed the three digital health unicorns that have emerged in 2024.
Four of the new unicorns that emerged in the first quarter came from the United States: clinical documentation startup Abridge, agency AI company Hippocratic AI, AI Copilot Provister Openers Openers and Data Analytics Company Truveta. The other two unicorns – full-body scan developer Neko Health and Digess Discovery Insilico Medicine – are from Sweden and China, respectively.
Photo: Feodora Chiosea, Getty Images
