CB Insights has released their State of Digital Health Report for Q1 2023, and there is finally some good news to report. After four quarters of declines in funding in the digital health space, global digital health funding held steady in the first quarter of this year at $3.4 billion. This is positive news to see stabilization after a year of continual decline, and the first time funding did not drop quarter to quarter since Q4 of 2021.
They do point out that this is not a trend in overall venture capital funding, but rather something unique to the digital health sector. The broader venture capital environment saw a QoQ drop of 13%. Even with funding levels holding steady in digital health, they are still at the lowest level we have seen in years. However, the report does show a slight uptick in the number of deals in this space between Q4 2022 (383) to Q1 2023 (387). This might be small, but it is again different from the decline in the broader VC space, notes Foley & Lardner. Read more.
