Digital health funding reached US$7.4bn in the first half of 2026, as AI helped drive a rebound after the post-pandemic reset, new research has revealed.
Companies in the sector raised US$1bn more than in the first half of 2025, when US$6.4bn was raised.
There were 244 digital health deals in the first six months of 2026.
The analysis, from Rock Health, found investors committed US$3.2bn in the second quarter, just below the US$4.2bn raised in the first quarter.
Rock Health researchers said AI is reshaping investor expectations, the funding environment and the competitive landscape.
They wrote: “As AI changes what’s easy to build, competitive advantage increasingly comes from qualities that are difficult to replicate.”
“As foundation models improve and AI capabilities become easier to build, technical differentiation is becoming harder to sustain. Investors and buyers are not asking, “Who has AI?” but instead, “Who has something AI alone can’t provide?””
Foundation models are large AI systems trained on broad datasets that can be adapted for multiple uses, including clinical documentation, search and workflow support.
The report identified four themes shaping defensible business models in the AI era: domain expertise, greater ownership of clinical or operational workflows, hands-on delivery and strong partnerships or network effects.
Rock Health researchers wrote: “As AI lowers the barriers to building, founders with deep experience inside the healthcare organisations they’re selling to often have a clearer view of where the most meaningful (and solvable) problems exist.”
In the first half of 2026, 19 companies raised 20 megadeals, meaning funding rounds of US$100m or more.
Those deals represented 45 per cent of all capital invested, with just over eight per cent of deals absorbing nearly half of deployed capital.
Large rounds included Whoop at US$575m, OpenEvidence at US$250m, Grow Therapy at US$150m, Verily at US$300m, Talkiatry at US$210m, eMed at US$200m, Forus at US$160m and Aidoc at US$150m.
Some companies also secured back-to-back rounds.
Garner Health, an employer-focused care navigation company, raised a US$100m Series E three months after a US$118m Series D.
Aidoc, a clinical AI platform, secured its second US$150m round in less than a year.
Mental health remained the top-funded clinical indication, supported by rounds for Talkiatry and Grow Therapy.
Jimini Health also raised US$17m, while The Path picked up US$14.3m.
A clinical indication is the health condition or disease area a product or service is designed to address.
Weight management and obesity were the second most-funded clinical indication, driven by the GLP-1 market and the ecosystem growing around it.
GLP-1 drugs mimic a hormone involved in blood sugar control and appetite, and are used for type 2 diabetes and weight management.
The area saw three megadeals in 2026, with eMed raising US$200m, Nourish US$100m and Midi US$100m.
The success of GLP-1s is also drawing investor attention to adjacent peptide categories, including experimental peptides linked to wellness and longevity.
Peptides are short chains of amino acids, the building blocks of proteins. Some are used in approved medicines, but experimental or unregulated versions may lack strong evidence or quality controls.
Superpower raised US$30m, while Protocole secured US$6m and Feel Peptides raised US$3m.
Sean Doolan, founder and investor at Virtue, said: “None of us know what the world is going to look like two years from now.
“The primary attribute of any pitch that is most fundamental to diligence is the founder. Founder-market fit matters a lot right now.
“We’ve seen real advantages with founders who understand not just the business function they’re trying to improve, but also the culture and conditions that shape how their customers operate.”
