Late-stage digital health funding still low

According to a recent report by Pitch Book, venture capital (VC) funding in the digital health sector has experienced a notable decline since Q2 2022, and funding levels have remained lower since then. Late-stage digital health companies have faced challenges in attracting investment, despite some activity in the IPO market. Quarterly funding has consistently ranged between $1 and $2 billion. In Q1 of this year, VC funding reached $1.1 billion, similar to the funding level in Q4 2022. However, it was significantly lower compared to Q1 2022, which saw $3.5 billion in digital health VC funding. The report highlights a decline in the number of VC deals and a decrease in deal sizes. The most active investors in digital health during the quarter were CVS Health Ventures and Frist Cressey Ventures.