In Q1 2025, U.S. digital health funding surged to $3B across 122 deals, with an average deal size of $24.4M—up from Q4 2024. According to Rock Health, early-stage startups dominated deal volume, while late-stage megadeals like Innovaccer ($275M) and Abridge ($250M) drove funding totals. Companies are leveraging “leapfrogging” strategies—such as M&A, modular tech stacks, channel partnerships, and collaborations with disruptors—to stay competitive in a rapidly evolving market. One standout example: Eli Lilly’s partnership with Ro, illustrating how even healthcare giants are leaning into innovation through digital health startups.
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