Funding for health tech startups in the first half of 2024 remained far below the high levels seen immediately after the Covid-19 pandemic, but several indicators suggest stability — and maybe even a brewing comeback for the sector.
Health tech startups raised $5.7 billion in the first half of the year, putting them on pace to just exceed the $10.7 billion total raised in 2023, according to a report from Rock Health, which invests in companies and provides advisory services.
Investment in health tech exploded from 2020 to 2022, fueled by low interest rates and lofty projections about lasting health care transformation created by the pandemic. Startups raised $29 billion in 2021. But with economic uncertainty, a more tempered outlook has taken hold. Investment numbers came back to earth last year and haven’t budged much since.
