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AI Powers Surge in Digital Health Funding: Rock Health

AI Powers Surge in Digital Health Funding: Rock Health

Digital health startups raised $6.4 billion in H1 2025, slightly up from previous years, signaling a stabilizing market, according to Rock Health. AI-driven companies led the surge, capturing 62% of total funding. These startups averaged $34.4 million per round, far exceeding the $18.8 million for non-AI firms.

The second quarter alone brought in $3.4 billion, outpacing the $2.6 billion quarterly average since early 2023. While the number of deals fell to 245 from 273 last year, average deal size rose to $26.1 million as investors favored later-stage rounds.

AI startups dominated mega-deals, securing 9 of 11 fundraises over $100 million. Public markets also showed signs of revival with Hinge Health and Omada Health going public. Meanwhile, 100+ M&A deals closed, on track to surpass 2024’s total of 121.

10-07-2025