The trend: Digital health funding rounds are getting larger, according to Rock Health’s Q1 2026 health tech funding report released this week.

• Average deal size reached $36.7 million, the highest in a single quarter since Q4 2021.
• Average deal size has increased every quarter since Q4 2024, when it was $16.9 million.

Unpacking the trend: Digital health startups raised $4 billion across 110 deals in Q1 2026, with 59% of funding concentrated in just 12 mega rounds of $100 million or more. The number of raises of at least $100 million hit its highest level since the pandemic-era peak in health tech investing. If Q1’s mega-deal pace holds, 2026 will end with about 50—nearly double last year’s total.

The largest digital health deals in Q1 were predominantly late-stage raises:

• Wearable-maker Whoop raised a $575 million Series G round at a $10.1 billion valuation.
• AI medical information platform OpenEvidence closed a $250 million Series D in its third round in under a year.
• Precision health company Verily hauled in $300 million in a late-stage round.
• Online psychiatry company Talkiatry scored a $210 million Series D round.

Why it matters: Investor capital is concentrating among a smaller group of more established startups, signaling possible fundraising challenges for early-stage digital health companies.

Only 30 digital health startups announced Series B raises through the first three quarters of 2025, per an October 2025 Rock Health report—notable since Series B represents a critical stage where companies must demonstrate their ability to turn early traction into scalable operations and meaningful revenue growth. That Rock Heath report found an average of 63 Series B raises annually over the three years prior to Q3 2025.

Implications for health tech companies: With few exceptions, digital health investors are writing large checks for startups with proven market fit and clear AI-driven impact—whether delivering personalized guidance from health data (Whoop), improving physician efficiency (OpenEvidence), or supporting mental health professionals (Talkiatry).

Earlier-stage companies can still win, but only if their solutions deliver tangible value through better patient outcomes, measurable cost savings for health systems, insurers, or employers, or by effectively addressing a large consumer health market.

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