State of Digital Health Q3’24 Report

State ofDigital Health Global | Q3 2024 Global data and analysis on dealmaking, funding, andexits by private market digital health companies Makesmartertech decisions. Our platform will help youdiscover, understand, andmanageyour response to emerging tech. Make confidenttech decisions that drive growth, improve operations, andbeat the competition with CB Insights. ▮▮▮▮IIIITry our platform–free!Sign up for a free trial “Steal” our data. Download the underlying data in this report. If you createany analysis or visualizations with this data, send it ourway and you could be featured in the CBI newsletter.@ us on social–LinkedIn X (Twitter)Instagram TLDRState ofDigital Health Your rundown ondigital healthin Q3’24 $3.3B 52% 37 2 7 New unicorns—both in Europe. US deal share.Down from Q2’24. M&A exits. UpQoQ. $100M+ mega-rounds. Q3'24 global digitalhealth funding.Down 23%QoQ. Digital health M&A exitscontinued to climb inQ3'24, rising 23%QoQto37. This rising M&Aappetite may be partlyfueled by establishedcompanies seizingopportunities to scoop upinnovative technologiesamid a challenging fundingenvironment for startups.The largest M&A deal inQ3’24 wasLetsGetChecked's$525Macquisition of digitalpharmacyTruepill.See the data→ Thenewest members ofthe digital health unicornclub are UK-based FloHealth, a women’s healthapp, and Huma, a remotepatient monitoringplatform. The US accounted for 52%of digital health deals inQ3'24, down from 61% inQ2. Digital health mega-rounddeals dropped slightly inQ3’24, falling from 9 to 7QoQ. This marked digitalhealth’s second-lowestquarterly funding levelsince 2017. However, theaverage deal size in 2024YTD is $17.8M—up from$11.8M in full-year 2023.This jump, amid adownturn in deals over thesame period, reflects thatinvestors are concentratinglarger sums on fewer, later-stage ventures. Meanwhile, Europe andAsia both saw their dealshares rise to 21% in Q3.Asia experienced a greaterjump in deal share, gaining7 percentage pointsQoQwhile Europe gained 3.This shift suggestsgrowing investor interestin markets outside oftraditional US hubs. Meanwhile, mega-roundfunding and share of totalfunding also declinedQoQ,underscoring a morecautious investorapproach. Mega-roundsaccounted for 30% of totaldigital health funding in Q3—down from 44% in Q2.Seethe data→ Against the backdrop of abroader downturn in newdigital health unicorns,these births highlightEurope’s growingimportance in the digitalhealth landscape. See the data→ See the data→ See the data→ ContentsState of Digital Health Global Trends Investment Trends7Unicorns30Exit Trends36Investors40 Geographic Trends44 US45Silicon Valley51New York55Boston59Asia63Japan69Europe73United Kingdom79 Global Trends Investment Trends State of Digital Health|Global Trends|Investment Trends Annual equity funding & deals State of Digital Health|Global Trends|Investment Trends Quarterly equity funding & deals State of Digital Health|Global Trends|Investment Trends Funding & deals by global region in Q3’24 State of Digital Health|Global Trends|Investment Trends Percent of quarterly deals by global region State of Digital Health|Global Trends|Investment Trends Percent of quarterly deals by investor group State of Digital Health|Global Trends|Investment Trends Annual average & median deal size State of Digital Health|Global Trends|Investment Trends Annual median deal size by global region State of Digital Health|Global Trends|Investment Trends Annual median deal size by investor group State of Digital Health|Global Trends|Investment Trends Quarterly funding & deals from mega-rounds (deals worth $100m+) State of Digital Health|Global Trends|Investment Trends Mega-round funding & deals by global region in Q3’24 State of Digital Health|Global Trends|Investment Trends Quarterly mega-round deals by global region State of Digital Health|Global Trends|Investment Trends Quarterly mega-rounds as percent of funding State of Digital Health|Global Trends|Investment Trends Annual percent of deals by deal stage State of Digital Health|Global Trends|Investment Trends Regional deal share by deal stage in Q3’24 State of Digital Health|Global Trends|Investment Trends Annual median funding by deal stage Global: Top Series C deals in Q3’24 Unicorns State of Digital Health|Global Trends|Unicorns Quarterly new & total unicorns (private companies valued at $1b+) State of Digital Health|Global Trends|Unicorns New & total unicorns by global region in Q3’24 State of Digital Health|Global Trends|Unicorns Quarterly new unicorns by global region State of Digital Health|Global Trends|Unicorns Global: Top unicorn births in Q3’24 Global: Top unicorns by valuation in Q3’24 Exit Trends Quarterly exits State of Digital Health|Global Trends|Exit Trends Percent of quarterly exits by global region Global: Top M&A exits in Q3’24 Investors State of Digital Health|Global Trends|Investors Global: Top investors by company count in