Investment in 2025 has reached $9.9 billion, exceeding the $8.4 billion that was raised through the third quarter last year, according to Rock Health.
Emily Olsen, Reporter – October 9, 2025 –
Dive Brief:
- Digital health funding in 2025 is tracking ahead of last year as outsized fundraising rounds boosted the sector’s investment total, according to a report by Rock Health.
- In the third quarter, U.S. digital health startups raised $3.5 billion in venture capital funding across 107 deals. Funding for 2025 so far reached $9.9 billion, exceeding last year’s $8.4 billion raised through the third quarter, the venture capital firm and consultancy said.
- But startups are inking fewer middle-stage deals and avoiding rounds with a series label, Rock Health researchers wrote. Meanwhile, the sector is seeing a growing number of rounds worth $100 million or more, often backed by large, well-known investors.
Dive Insight:
Startups notched fewer funding rounds in the third quarter compared with earlier this year, but the check sizes were larger, according to the report. Average deal size for this year reached $28.1 million, increasing from $20.4 million in 2024.
Mega-deals, or rounds worth $100 million or more, have contributed to the trend. So far in 2025, the sector recorded 19 mega-rounds — including artificial intelligence-backed documentation firm Ambience Healthcare, benefits platform Judi Health and AI medical search tool OpenEvidence — already surpassing last year.
