After reaching record levels in 2021, digital health funding was down 31 percent in the third quarter of 2022, according to an Oct. 11 CB Insights report.
The industry raked in $5 billion in funding in Q3, down from $7.2 billion in Q2. The industry's funding peak since 2018 was $16.8 billion in the second quarter of 2021. Meanwhile, the 419 deals in Q3 were the fewest since CB Insights started tracking the data in 2018. Fifty-five percent of the deals were in the U.S., also a high.
In addition, the number of new unicorns, as well as mergers and acquisitions, was down. As in 2021, the average median deal size so far this year has been $4 million.
The top digital health investors by deals were General Catalyst (seven), Lightspeed Venture Partners, (five), Transformation Capital (four) and Arch Venture Partners (four).