Digital health venture capital activity is off to a good start in 2025 with the amount of equity funding reaching USD 5.3 billion, a level not seen since the second quarter of 2022. In Q1 this year, the number of deals did not increase from last quarter, dropping off to 300, which indicates that investors are putting more capital to work per deal. Companies applying artificial intelligence (AI) to healthcare are leading the pack with AI-focused companies, accounting for eight out of 11 deals worth more than USD 100 million and gathering 60% of all digital health funding. For instance, USD 600 million was raised by Isomorphic Labs, Google’s AI drug discovery business which raised outside capital for the first time. Beyond finding new treatments, many other companies are focusing on making healthcare data more useful by integrating datasets and offering analytics. For instance, Truveta raised USD 320 million and links electronic health record with insurance claims data so hospitals can better assess which therapies they should offer.
Source: CB Insights, April 2025.