As we pass the midyear mark, 2025 is already shaping up to be one of digital health’s most validating years in recent memory. IPOs are (finally) back. AI-native tools are showing real-world traction with providers. And startups are landing outsized rounds, not just because of hype, but because they’re earning it.

While overall funding levels stayed steady with the past two years, what stood out in H1 was signal over noise. Investors are making fewer, but larger and more focused bets. 

At the same time, the policy and economic backdrops are anything but predictable. From shifting Medicaid coverage and tariff uncertainty to new executive orders on AI and price transparency, innovators are navigating uncharted waters while trying to scale sustainably.

For an in-depth look at the key funding trends, AI-powered breakout companies, M&A momentum, and what’s unfolding on the policy front, check out Rock Health’s H1 2025 Market Insights Report.