Digital health funding hits a low

Rock Health analysts say the third quarter of 2022 brought low funding numbers that raise questions about the condition of the digital health market. The report tallies digital health funding at $2.2 billion across 125 deals in the third quarter. On top of that, it’s the lowest quarter by dollars raised in digital health since the fourth quarter of 2019 ($2.1 billion). They say digital health funding enthusiasm took a hit on the back of macroeconomic struggles. Rock Health said only six funding raises of Series C or higher came in during the third quarter. “While Q1 and Q2 2022 may have read as adjustment periods coming off of 2021, Q3 represented a clear departure from the COVID-driven digital health financial market, including changed market dynamics, shifts in investor focus to prioritize workflow support and complex diseases, and growing excitement for new technologies and immersive solutions,” the analysts wrote.