Health tech funding levels out as startups raise $2.5B in third quarter
Funding for health tech startups might be starting to level out.
Digital health startups in the US raised $2.5 billion across 119 deals, according to digital health research and venture firm Rock Health’s Q3 2023 funding report published Monday. It’s the second-lowest quarter by funding total since the fourth quarter of 2019, besting the $2.2 billion total of the third quarter a year ago.
The latest quarter follows a trend of lower funding activity following a peak in 2021 during the pandemic. Investors concerned about high interest rates, a slower economy and a lack of companies going public are doing fewer deals, according to the report. Recent bankruptcy filings by publicly-traded digital health giants Pear Therapeutics and Babylon Health may have also shaken investors’ faith in the sector.
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