2025 year-end funding: $14.2B raised across 482 deals

In 2025, U.S. digital health startups raised $14.2B across 482 deals, a 35% year-over-year increase and the highest funding total since 2022. While headline funding rebounded, gains were uneven, with capital flowing to fewer companies and larger rounds driving much of the growth.

At the top of the market, 26 nine-figure raises (up from 18 in 2024) and mega fund participation pushed deal sizes higher and concentrated funding among a small group of perceived winners. At the same time, fitness and wellness rose into the top tier of funded categories, supported by broader adoption of wearables, growing interest in preventive care and longevity, and renewed experimentation with consumer-facing models.

Elsewhere, many companies continued to face pressure, with 35% of rounds unlabeled, reflecting ongoing valuation overhangs and limited room to maneuver for startups caught between early traction and breakout scale. Exit activity picked up meaningfully, with M&A volume up 61% year over year, spanning growth-driven deals, roll-ups, and tougher outcomes for companies under pressure, alongside five digital health IPOs.

Dive into our 2025 year-end market overview for a deeper look at how these dynamics shaped digital health in 2025 and what they may signal for the year ahead.

Headlines

  OpenAI Launches ChatGPT Health In A Push To Become A Hub For Personal Health Data
Launch lets users connect medical records and wellness apps, but warns against use for diagnosis or treatment Forbes

Anthropic Expands Into Healthcare A Week After OpenAI Launched A Similar Product
Claude for Healthcare will offer HIPAA-ready tools for providers, insurers, and consumers Business Insider

 FDA Announces Sweeping Changes To Oversight Of Wearables, AI-Enabled Devices 
New guidance allows some clinical decision support software and consumer devices to skip FDA review STAT 

 Walmart Dips Toes Back Into Healthcare With New Digital Platform 
Better Care Services targets uninsured customers, connecting them with third-party providers, including LillyDirect HealthExec

Amazon Pharmacy Starts Offering Novo Nordisk’s Wegovy Weight Loss Pill 
Oral GLP-1 offering comes as pharmacy incumbents brace for political pressure on pricing and access models CNBC
 

Recent Funding

• Pomelo Care raises $92M to expand virtual services to women’s health and pediatric care
• Real-time OR optimization platform Apella picks up $80M for new health systems expansion
• Protege, a data layer for AI training in health, audio, and video, pulls in $30M
• Clinical voice AI platform for care management Tucuvi secures $20M
• AI-native operating system for mental and behavioral health Oasys locks down $4.6M