January 9, 2023

$15.3B raised in 2022 digital health venture funding

The new year is here and with it, early January’s signature hallmarks. Resolutions for good health (and associated feuds) abound; bankers, investors, and entrepreneurs alike are descending upon a soggy San Francisco for JPM; and we at Rock Health are releasing our 2022 funding and trends recap.

We won’t bury the lede. 2022’s $15.3B raised across 572 deals—far lower than 2021's $29.3B and barely surpassing 2020’s $14.7B—signals the tail end of a macro funding cycle that started back in 2019 and peaked with the COVID-19-era investment boom. What’s unclear is whether we’ve reached the end of this cycle, or if more low funding quarters are on the horizon. With recession concerns looming, there’s a chance that 2023 could be digital health’s lowest venture funding year since 2019.

But downhill runs aren’t necessarily all doom and gloom. Read on for lessons learned from the current market, which companies continued to pull in cash despite tough conditions, and where investors might place their bets in the year ahead.

Nominations for this year's Top 50 in Digital Health will close this week! Recognize the entrepreneurs, providers, technologists, investors, reporters, and others pushing digital health forward before the nomination period ends this Friday, January 13th.

Headlines

Why Digital Health Is Ripe For A New Wave Of M&A
When the going gets tough, the tough make deals Fierce Healthcare

How Ambient Documentation Is Altering The Provider Workload
Rock Health port co Augmedix founder describes the evolution of medical documentation MobiHealthNews

The Story Of The Jada Shows How Bias Holds Back Women's Health
Why it took a life-saving device 11 years to get to market Fortune

GE HealthCare Begins Trading As Spin-Off Heralds Shift To Corporate Streamlining
Corporate spin-offs: everybody’s doing it (especially in healthcare) Yahoo Finance

Best Buy's Resources Are Expanding Current Health's Reach
The Geek Squad will see you now MobiHealthNews

Healthcare Sees A Surge In Financing Platforms For Patients
Is “buy now, pay later” a realistic option for healthcare payments? STAT

Recent Funding (from the past few weeks)

Komodo Health grabs $200M to scale its life sciences-focused healthcare analytics "map"
Azalea Health lands $45M to expand its nonclinical workflow solution suite
Virtual provider network and digital front door KeyCare pounces on $27M
Pharmacy and provider analytics firm RxAnte closes on $25M
Virtual-first, customized allergy treatment provider Nectar pulls in $16.5M
BehaVR brings in $13M for its VR-based digital therapeutics for mental and maternal health
Wisdo collects $11M to grow its social health, peer support, and referrals solution
Carallel raises $8.2M to scale its family caregiver support toolkit
AI-supported healthcare marketplace and care navigation solution Porter locks in $5.4M
Monarch Medical Technologies finds $5M for its insulin dosing clinical decision support tools
Virtual chronic pain care provider Override Health secures $3.5M
Crescendo Health nabs $3.4M to grow its data storage solution for clinical trials
LunaJoy gets $2.4M for women-focused virtual therapy and counseling