2023 year-end funding: $10.7B raised across 492 deals

We expected 2023 to be a year of less capital for digital health startups, and it was—with $10.7B raised across 492 deals, 2023 was the lowest year of U.S. digital health investment since 2019. Yet, common measures that accompany a cooling funding market, such as downrounds, shutdowns, and acquisitions, didn’t spike. How come?

Ultimately, last year was defined by startups leveraging creative measures to avoid those difficult steps. Companies used extension and insider rounds as interim measures to shore up cash. And unlabeled rounds (i.e., not labeled with a letter, such as “Series B”)—which delay the pressure to meet expectations associated with the next labeled raise—made up a whopping 44% of 2023’s deal count, a new annual record.

But transition measures can’t buoy startups forever. While the economic climate of 2024 remains uncertain, some delayed activities like acquisitions, public exits, and sales are likely on the docket. Read our year-end 2023 funding recap to understand what 2023’s funding patterns mean for 2024.


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