{"id":108690,"date":"2025-02-19T17:42:38","date_gmt":"2025-02-20T01:42:38","guid":{"rendered":"https:\/\/xira.com\/p\/2025\/02\/19\/what-sets-2025s-digital-health-funding-environment-apart-from-previous-years\/"},"modified":"2025-02-19T17:42:38","modified_gmt":"2025-02-20T01:42:38","slug":"what-sets-2025s-digital-health-funding-environment-apart-from-previous-years","status":"publish","type":"post","link":"https:\/\/xira.com\/p\/2025\/02\/19\/what-sets-2025s-digital-health-funding-environment-apart-from-previous-years\/","title":{"rendered":"What Sets 2025\u2019s Digital Health Funding Environment Apart From Previous Years?"},"content":{"rendered":"

The post What Sets 2025\u2019s Digital Health Funding Environment Apart From Previous Years?<\/a> appeared first on Above the Law<\/a>.<\/p>\n

The digital health funding landscape has gone through a series of twists and turns ever since the Covid-19 pandemic \u2014 once characterized by a frantic investment pace and overblown valuations, then later hesitance and a dead exit market.\u00a0<\/p>\n

But for the past six months or so, the digital health sector\u2019s funding environment has been quite stable and busy, noted Billy Deitch, partner at Oak HC\/FT<\/a>, during an interview this week at the ViVE<\/a> conference in Nashville.<\/p>\n

This year \u201cfeels busier\u201d in terms of quality investment opportunities, Deitch stated.<\/p>\n

\u201cComing out of the boom times of \u201821 and \u201822, there were a couple years of companies tightening their cash burn, not raising \u2014 and now we\u2019re seeing so much more activity. I would say since around Labor Day of last year, and then continuing into this year, the pace of opportunities that we\u2019re seeing is much higher than it\u2019s been in years,\u201d he declared.<\/p>\n

He noted that this isn\u2019t entirely surprising, given many companies have been preserving the capital over the past two years with the plan to raise funds in 2025.<\/p>\n

In the past, it was common for startups to raise capital every six months or so, Deitch pointed out. With all that cash, a lot of them have focused inward over the past couple years, figuring out ways to scale their business and increase their revenue, he explained.<\/p>\n

Deitch also highlighted that \u201cgrowth at all costs\u201d has proven to be an unfit motto for digital health startups.<\/p>\n

\u201cThe fact of the matter is healthcare can move really slowly \u2014 a lot more slowly than other sectors. You need to really deliver, and you need to move at the pace that health systems or payers are willing to move at,\u201d he remarked. \u201cYou can\u2019t just sell solutions. You have to sell solutions, deliver on solutions and make sure that your customers are saying great things about you \u2014 that gives you the right to continue to grow.\u201d<\/p>\n

Deitch added that point solutions probably won\u2019t continue to receive high amounts of investment like they did in 2021 and 2022.<\/p>\n

\u201cPoint solutions got funded [in the past] \u2014 they had a narrow focus, so let\u2019s say a health system has to buy 10 of those to have a solution. These companies can struggle on their own,\u201d he stated.<\/p>\n

He said he is seeing more and more point solution providers merge with each other to create platforms with broader sets of tools \u2014 and added that he believes this trend will only become more common.<\/p>\n

Photo: aurielaki, Getty Images<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The post What Sets 2025\u2019s Digital Health Funding Environment Apart From Previous Years? appeared first on Above the Law. The digital health funding landscape has gone through a series of twists and turns ever since the Covid-19 pandemic \u2014 once characterized by a frantic investment pace and overblown valuations, then later hesitance and a dead […]<\/p>\n","protected":false},"author":3,"featured_media":108691,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-108690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-above_the_law"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/xira.com\/p\/wp-content\/uploads\/2025\/02\/GettyImages-896076386-rrUuoX.jpeg?fit=725%2C482&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts\/108690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/comments?post=108690"}],"version-history":[{"count":0,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/posts\/108690\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/media\/108691"}],"wp:attachment":[{"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/media?parent=108690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/categories?post=108690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xira.com\/p\/wp-json\/wp\/v2\/tags?post=108690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}