Two sides to every correction

After the wild ride that was 2021 digital health funding—and a tempered start to 2022—all eyes have been on Q2 and what it might indicate about sector activity for months to come. The numbers are in, and Rock Health's H1 2022 digital health venture funding recap posits that the froth of 2021 has turned to fade—digital health is not immune to the economic turmoil facing the nation. Reflective of the broader economy, digital health funding closed with $10.3B in H1 2022, placing this year on a trajectory to total significantly less than 2021’s $29.1B. Also aligned with larger market conditions, digital health exits dried up—no digital health companies went public this half, and a few publicly-listed companies returned to private holdings.

What does this adjustment actually mean for founders, funders, and buyers alike? We see two sides to the story: though 2022 will likely fall short of 2021’s funding total, it represents an important return to the longstanding trajectory of digital health as a sustainable investment sector. This particular market moment offers innovators an opportunity to reassess and reground in profit-minded trajectories, hitch their wagons to resilient investors and partners, and lean into competitive edges (like clinical robustness). Read the H1 2022 funding recap for more on the data—plus a summary of change-ups in funding allocations, what’s next for M&A, and the impacts of recent regulatory and legislative shifts.

Calling all digital health innovators in Boston! The Rock Health team will host a digital health community happy hour in Cambridge on July 19 from 5-7:30pm that will include a panel on the topic “Bubble-wrapping digital health: Real talk for weathering a stormy market.” If you’re interested in joining, please fill out this interest form—space is limited, so sign up soon!


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