This year’s funding has already surpassed 2019’s full-year totals, signaling renewed interest despite a shift toward more conservative valuations and an uptick in “down rounds” — deals where companies raise funds at lower valuations. Notably, seed rounds have risen to 42% of all health tech deals, reflecting increased focus on early-stage investments. However, the market remains cautious, with many companies refraining from new raises since 2021, indicating potential moves toward self-sustainability or a response to saturated markets and lower investor confidence.

Large-scale funding or “mega-deals” are becoming rare, with only 22 deals over $100 million in 2024 compared to 98 in 2021, indicating a preference for smaller, more strategic investments. Exits remain limited as well, with a frozen IPO market — only one health tech company has gone public this year — and a decline in mergers and acquisitions (M&A). Over 80% of this year’s M&A activity is led by healthcare firms rather than technology giants or retail health, and many deals remain undisclosed, suggesting substantial price discounts.

Overall, there are indications of a recalibrated landscape where investors look to build resilient portfolios while navigating cautious optimism and market volatility.