Digital health startups garnered $6.4 billion in funding during H1 2025, led largely by AI-focused companies driving adoption in healthcare providers. The sector witnessed notable IPOs and increased M&A activity, indicating maturation. Despite stabilization, policy uncertainties create potential headwinds for long-term growth. Concurrently, health tech startups raised $6.4 billion across 245 deals in the U.S., underscoring robust investor appetite for AI-powered innovation in health technology.