PYMNTS.com January 17, 2025
Digital healthcare is at a pivotal moment, with innovation, funding and expansion creating new opportunities and challenges for startups and established companies. In 2024, digital health venture funding reached $10.1 billion, slightly down from the previous year but still surpassing pre-pandemic levels. Most of these funds have been directed toward early-stage ventures, especially in areas like nonclinical workflows, mental health and obesity care.
Late-Stage Funding Declines Drive M&A Activity
However, a decline in later-stage funding reveals larger companies are facing more difficulty securing capital, potentially leading to consolidation and partnerships.
“Many late-stage players spent significant capital developing and piloting their solutions but weren’t able to clear the necessary hurdles to operate sustainably at scale,” Lawrence M. Chu, co-chair of Global...
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