How Did Digital Health Investors View This Year’s Funding Environment — and What Do They Predict for 2025?

Investors in digital health startups remain optimistic despite a slight decline in investment in 2024 compared to the previous year. Artificial intelligence is a key focus for investors, with millions expected to be poured into AI-powered healthcare tools in the future. Startups that can prove their value and align with customer metrics are currently favored for investment. There is a growing interest in startups focusing on value-based care and Medicare Advantage, influenced by the incoming presidential administration. The digital health sector raised $8.2 billion in the first three quarters of 2024, down slightly from the previous year, but still showing promise for the future.

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