Investment Landscape

Digital health investment totaled $10.7 billion in 2023 across 687 deals globally. While down 52% from the 2021 peak of $22.6 billion, investment remains 3x pre-pandemic levels, reflecting structural transformation rather than a temporary bubble.

Hot Subsectors

Mental health technology attracted $1.9 billion in 2023, the largest subsector by investment. Telehealth platforms raised $1.7 billion. AI diagnostics and clinical decision support companies raised $2.3 billion combined, with AI-assisted radiology particularly active.

Telehealth Post-Pandemic

Telehealth utilization stabilized at approximately 20% of outpatient visits in the US — dramatically higher than the 1% pre-pandemic baseline but below the 40% peak in April 2020. The lasting legacy is a hybrid care model that patients and providers have embraced.