The US Digital Health Ecosystem Defies Expectations

Defying expectations of a prolonged funding winter, H1 2024 United States Digital Health Funding surged past forecasts. A substantial $9.6 billion was channeled into 414 deals across the US, Canada, and Mexico, surpassing the $8.6 billion recorded in H1 2023. This resurgence underscores renewed investor confidence and the sector’s growing momentum. Ecosystem players are particularly keen on observing Mental Health’s re-emergence as the leading therapeutic area and its potential trajectory.

Galen Growth’s 2024 Mid-Year Analysis uncovers the dynamic landscape of the United States and other North American countries. This report delves into key trends driving demand, including ecosystem growth, strategic partnerships, regulatory advancements, and venture funding.

Powered by HealthTech Alpha, our proprietary data platform, we offer unmatched, data-driven insights into the global Digital Health sector.

H1 2024 Digital Health Funding Highlights from the U.S.

• Funding Surge: Digital Health funding reached $9.6 billion across 414 deals in H1 2024, defying expectations of a prolonged funding winter.
• US Dominance: The US’s share of global Digital Health funding rose to 77%, up nine percentage points year-over-year.
• Health Systems Partnerships: Health Systems formed 23% of all collaborations with Digital Health ventures, emphasizing AI integration in healthcare.
• TechBio Leadership: Research Solutions (TechBio) led funding with $2.2 billion across 28 deals
• Mental Health Resurgence: Mental Health emerged as the top therapeutic area, surpassing Oncology, with $1.34 billion in funding, a 63% year-over-year increase.
• AI Technology Growth: Investments in AI-driven ventures made up 58% of total funding, despite only 42% of US ventures leveraging the technology. The share of private Digital Health ventures using Generative AI is growing.

This report, powered by HealthTech Alpha – a Galen Growth proprietary solution and the world’s leading Digital Health private market data, intel, and insights platform – provides a comprehensive overview of the U.S. Digital Health ecosystem, empowering stakeholders to make informed decisions in this evolving landscape.

Ventures and Companies Covered in the Report:

The “2024 Mid-Year Digital Health U.S. Key Trends Report” report includes data on the following companies:

Atropos Health, TetraScience, ConcertAI, Totus Medicines, Fabric, Akili, Science 37, Xaira Therapeutics , Abridge, Freenome, Talkiatry, Blackrock Neurotech, Foodsmart, Koios Medical, BioAge Labs, DecisionRx, RapidSOS, Transcarent, Accuhealth, Invitae, Cloudbreak Health, ScienceIO, Asensus Surgical, Tempus AI, Alto Neuroscience, Metagenomi, Relay Therapeutics, UniDoc Health, Rendever, HealthSnap, Mayo Clinic, Google Cloud, Nvidia, Lilly, Intermountain Health, Pfizer, Blue Cross Blue Shield of Massachusetts, Lenovo, Mount Sinai Medical Center

Read our other regional H1 Key Trends reports

Download our complimentary H1 2024 Digital Health Funding: Global Key Trends Report, or our premium reports on the Asia Pacific and Europe:

• • 2024 Mid-Year Digital Health in Asia Pacific Key Trends Report
  • 2024 Mid-Year Digital Health in Europe Key Trends Report

Additionally, we release regional analyses in our blog.