Rock Health April 8, 2024
Q1 2024 moved us from times of transition to full entrenchment in a new digital health funding cycle. The quarter’s $2.7B across 133 digital health demonstrated higher deal volume at lower check sizes. In the private markets, creative financing measures were the name of the game, while AI drove investment energy and attention refocused on startups’ abilities to demonstrate outcomes. In the public markets, stock delistings continued to change the makeup of digital health’s publicly-traded cohort, impacting how digital health players and investors think about exit potential.
Expectations are resetting for digital health players both private and public, pushing them to align to different paradigms of success (strong outcomes and healthy margins instead of high projected growth rates) and...