Q3 digital health funding: $2.4B across 110 deals

If we’ve learned anything from digital health’s recent history, it’s to avoid conflating volume of activity (e.g., venture or M&A deal counts) with quality of activity (e.g., strategic M&A). With $2.4B raised across 110 deals in Q3 2024, the U.S. digital health market continued operating in a smaller, more focused manner. While deal count slowed compared to Q1 and Q2, average deal size remained steady, with investors making sharper bets on a smaller cohort of companies. M&A activity also dipped, though Q3 saw some digital health players use M&A to integrate new features and capabilities into their offerings—types of arrangements we’ve dubbed tapestries. DarioHealth, Commure, and Fabric Health are just a few of the tapestry-weavers at the loom, quilting together multiple products and capabilities to appeal to buyers. We’re watching these threads and how they might change digital health’s competitive landscape—i.e., who can compete for large contracts at scale. Read our Q3 funding and market trends update for more.

Heading to HLTH 2024? Join us on October 22 at 10:40 am as Rock Health Advisory’s Sari Kaganoff moderates a “can’t miss” panel on one of healthcare’s hottest topics, GLP-1s—“Miracle Cure or Healthcare’s Breaking Point?”—featuring leaders from Geisinger, Dandelion Health, Stanford University, and Form Health. Register and save $250 on your ticket with our code: 24p_rock250.

Headlines

Funding In Youth Mental Health Is Growing
Opportunities remain with nearly half of U.S. kids enrolled in Medicaid MedCity News