The digital health sector in the U.S. is experiencing a surge in investment, with $5.7 billion raised in the first half of 2024. Series A funding is most prevalent, with 38% going to AI startups. Unlabeled deals, used by startups needing capital, have increased since 2019 but declined in 2024. Disease treatments and mental health are top funding areas. Three exits were seen, the first in 21 months. Acquisitions within the sector decreased, but PE firms acquired more startups, surpassing previous years. The sector is showing resilience and returning to normal venture patterns, with founders and investors optimistic for the future.
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