Digital health venture capital funding grew to $14.2 billion in 2025, the highest number in three years, according to Rock Health.
Here are eight takeaways from the Jan. 12 report:
1. Digital health startup funding marked a 35% increase over 2024 ($10.5 billion) and was the highest since 2022 ($15.9 billion).
2. Fewer companies are receiving the investments, however. While there was more capital in 2025, there were fewer deals than in 2024 (482 vs. 509). The average deal size rose from $20.7 million to $29.3 million.
3. Megadeals (over $100 million) accounted for 42% of the total investment, the highest percentage in four years and double that of 2024. There were 26 megadeals, as well as 15 health tech startups anointed as “unicorns” (valuations of $1 billion-plus). Venture capital firms Andreessen Horowitz, General Catalyst and Kleiner Perkins participated in at least five megadeals each.
4. Smart ring startup Oura raised $900 million in October, the largest digital health deal since Rock Health began tracking this data in 2011.
5. Five digital health companies went public in 2025 — Carlsmed, Heartflow, Hinge Health, Omada Health and Profusa — compared to just two in the three years prior.
6. AI-enabled companies made up half of all deals, matching the broader venture capital market, with provider adoption of the technology surging and healthcare leveraging agentic AI faster than many other sectors.
7. Will these big bets, on a relatively small number of healthcare AI startups in particular, pay off? “We need to get back to thinking of investor money like carbs and customer money like protein,” stated Carl Byers, a partner at venture capital firm F-Prime. “When customers pay you, they’re saying your service is worth more to them than their cash. Investor capital on the other hand, especially when it comes too fast, can make it hard for management teams to stay disciplined about how they spend. Raising money is exciting, but it can’t short-circuit the hard work of understanding why the world doesn’t yet have your innovation and how that innovation is actually going to change it.”
8. 2026 could be shaped by policy shifts, notably CMS’ launching of ACCESS in July, the “first meaningful Medicare value-based pathway for digital health,” and the Trump administration paring back AI regulations.
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