The trend: Investments in AI-powered digital health startups drove an increase in total VC funding for the sector throughout the first half of 2025, according to a recent Rock Health report.

The topline data on digital health funding in H1 2025: The first 6 months saw a small increase in YoY digital health funding. Deal volume dipped, while average deal size increased.

• Investors sank $6.4 billion in the first half of the year, up from $6 billion in H1 2024.
• There were 245 deals, down from 273 in the same period last year.
• Average deal size grew from $20.4 million in H1 2024 to $26.1 million in the first 6 months this year.

AI driving the trend: AI-powered companies snagged 62% of total digital health funding in the first half of the year. It’s the first time that figure has surpassed 50%, per Rock Health tracking.

Additionally, digital health startups with AI as a core part of their product or offering are separating from non-AI-enabled companies when it comes to average deal size.