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Q3 2023 Digital Health Funding Stalls at $2.5B

The digital health sector has encountered substantial declines in funding and deal volume; however, quarterly trends are now stabilizing within a fresh investment cycle, with investors directing funds toward startups engaged in exploring innovative treatment pathways and addressing nonclinical workflow challenges.

Despite witnessing notable bankruptcies among former IPO success stories in 2023, the overall public market performance of the entire digital health sector has shown resilience. The present state of digital health can be characterized as “smaller but mighty.”


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