INSIGHTS
January 13, 2025

2024 year-end market overview: $10.1B raised across 497 deals

In 2024, U.S. digital health startups raised $10.1B across 497 deals, after logging $1.8B across 118 deals in Q4. The year’s lower funding total, a modest drop from 2023, was influenced by investors' focus on earlier-stage funding and a pullback on later-stage check sizes.

While funding focused on early-stage startups, a few larger companies dominated 2024’s healthcare headlines—creating a David and Goliath dynamic where mega funds drove investment activity, big AI moves involved a handful of players, and funding concentrated in popular value propositions and therapeutic areas. In 2025, we see a future where Davids and Goliaths coexist and even thrive side-by-side, if smaller players strategize how they navigate a market rife with big entities. While some may aim to become Goliaths straight out of the gate, others will find success developing specialized use cases or setting sights on acquisition by Goliath players. Read our 2024 year-end market overview to learn more.

In our earbuds: The Heart of Healthcare podcast’s 2024 Digital Health Year in Review. Rock Health Advisory CEO Megan Zweig talks with Halle Tecco and Michael Esquivel to explore the key themes that defined a transformative year in digital health.

Headlines

Transcarent To Acquire Fellow Health Benefits Navigator Accolade For $621M
Weaving tapestries of services and offerings for self-insured employers Healthcare Dive

Eli Lilly, Andreessen Horowitz Link Up On $500M Biotech Venture Fund
Lilly will supply all capital along with access to its Catalyze360 program Fierce Healthcare

H1 Acquires Ribbon Health To Expand Its Reach To Health Plans, Digital Health Markets
Rock Health port co will help H1 move beyond life sciences Fierce Healthcare

Hippocratic AI Debuts App Store for Health-Focused Agents
Pre-built agents address topics like women+ health and climate health needs FemTech Insider

FDA Pushes Makers Of AI Devices To Disclose More Details On Testing, Performance
New draft guidance advises AI-enabled devices disclose sources and biases STAT News

High Cost Of Weight Loss Drugs Drives Employers To Require Nutrition Counseling
Opportunities for food as medicine and sustainable weight loss players CNBC

New Study Sheds Light On Hospital Algorithm Use
Of U.S. hospitals using predictive AI, 79% used models from their EHR vendors Health Affairs

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