Report: Digital Health funding falls after Booming 2021

Report: Digital Health funding falls after Booming 2021

The Rock Health report found U.S. digital health startups raised $10.3 billion in the first half of 2022, putting the year on track to fall short of 2021. Digital health funding has declined from the blockbuster investment seen in 2021, but a Rock Health report on the first half of the year notes it isn't all doom and gloom for the sector. Though this year’s funding will fall far short of last year, 2022 digital health funding is nonetheless on track to outpace funding in 2020. But specialized digital health investors were less likely to pull back from the sector, which could be good news for their startups. Meanwhile, digital mental health startups kept their top spot in terms of highest-funded clinical area, bringing in $1.3 billion during the first half of the year. Government policy and regulation is also playing a larger role in the digital health sector, which the report chalks up to a post-COVID-19 tech focus in healthcare and the number of larger players that are drawing regulatory scrutiny. "While it’s likely that digital health startups supporting abortion care will receive national attention and interest, we have yet to see how the post-Roe world will impact funding in reproductive health," Nagappan and Krasniansky wrote.

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