Digital Health 2023 by Numbers (mini-report)


The Digital Health sector, a thriving domain with 10,000+ private ventures, faces a funding drought, with less than 40% securing funds. M&A activities slow, IPOs scarce, highlighting industry challenges. High-profile closures like Pear Therapeutics signal caution. GenAI’s rise dominates discussions, reshaping biopharma and health systems. Healthcare’s pain points drive focus, intensifying investments from pharmaceuticals and health systems towards digital innovation, addressing critical issues. Our Mini-report, “Digital Health by Number 2023,” summarizes the events of the past 12 months.

Key Insights

Amidst the ongoing evolution of Digital Health captured in “Digital Health 2023 by Numbers,” the industry has experienced significant growth, nurturing over 10,000 diverse ventures dedicated to advancing innovation. However, a critical concern surfaces as the sector grapples with pressing funding challenges. Recent data highlights a decline in investor interest, with fewer than 40% of Digital Health ventures securing funding in the past 18 months. This financial strain has not only impacted startups but has also resulted in a noticeable slowdown in mergers and acquisitions (M&A) activities, indicating a subdued phase in the industry’s expansion.

High-profile shutdowns and bankruptcies, such as Pear Therapeutics (US), (US), and Babylon (UK), have punctuated this landscape despite substantial funding and lofty valuations. These instances serve as cautionary tales, reflecting the consequences of unrealistic growth assumptions within the industry. Such occurrences underscore the challenges faced by digital health entities, shaping a narrative that navigates the transition from exaggerated expectations to the pragmatic realities of sustained growth and viability.

In the midst of these challenges, Generative AI (GenAI) emerges as a standout innovation within Digital Health. This revolutionary technology garners substantial attention, reshaping discussions and implementations across biopharma and health systems. GenAI’s prominence signifies a pivotal shift in the sector’s narrative, illustrating its dominance as a driving force behind this year’s most transformative advancements.

Despite the funding constraints and the slowdown in M&A, the Digital Health domain remains resilient. The sector’s response to these challenges has led to intensified commitments from pharmaceutical companies and health systems. They are increasingly investing in Digital Health innovation, leveraging technology to address crucial pain points within the healthcare value chain. This concerted effort signifies a focused approach towards tackling core industry challenges, fostering a path towards sustainable growth and transformative solutions.

HealthTech Alpha, a Galen Growth proprietary solution, and the global leading Digital Health private market data, intel and insights platform powers this report!

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Source of Data

Galen Growth’s proprietary platform, HealthTech Alpha, provides the data source for this report. Corporate Business Development, Business Intelligence, and Digital Health Partnership teams worldwide prefer HealthTech Alpha, the world’s most-trusted Digital Health data, intel, and insights platform. Visit to learn more about our data or research for our reports.

Our Mission

Founded in 2016 by Digital Health experts, Galen Growth empowers global Fortune 500 companies, institutional investors, and promising Digital Health ventures to fast track their digital health strategy to create significant financial and social values. To find out more, visit

Foreword: 1 page
Annual Recap: 9 pages
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