Market downturn dampens digital health funding, M&A in 2022. These sectors raked in the most cash

By Heather Landi – July 11, 2022

After reaching a fever pitch in 2021, digital health funding cooled down in 2022, raising $10.3 billion across 329 deals in the first six months. 

That’s down from the $14.7 billion raised during the same period last year, according to a first-half 2022 funding report from Rock Health, a venture fund dedicated to digital health.

But, it should be noted, $10 billion is still a hefty amount of cash pouring into digital health, and this year’s funding is on track to outpace funding in 2020. This year’s overall funding is now pacing to land around $21 billion, significantly less than 2021’s total of $29.1 billion and well ahead of 2020’s $14.7 billion.

While the first quarter of 2022 funding generally matched the same period in 2021, the second quarter of 2022, with $4.1 billion raised, was the lowest funding quarter since the second quarter of 2020 with $2.9 billion.

Funding isn’t the only thing slowing down this year, according to Rock Health’s report. And after 23 public market exits in 2021, digital health public exits came to a halt in the first half of 2022  as zero startups went public, and a few publicly listed digital health companies returned to private holdings, including health IT company Cerner.


Josh Sandberg

Josh Sandberg is the President and CEO of Ortho Spine Partners and sits on several company and industry related Boards. He also is the Creator and Editor of OrthoSpineNews.

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