The enterprise capital market seems to be returning to regular after the ups and downs of the pandemic. That’s excellent news for the 1000’s of healthcare startups vying for funding.

In keeping with a latest report from market analysis agency CB Insights, world enterprise capital funding totaled $65.7 billion within the second quarter of 2024.

The market analysis additionally confirmed that deal quantity is declining whereas deal measurement is growing, leading to a median improve in enterprise capital deal measurement of 17%, now at $14.4 million in comparison with final yr’s common deal measurement of $12.3 million.

One other report — this time from Rock Well being, a seed fund that backs startups working in digital well being — discovered that digital well being funding {dollars} this yr are on observe to surpass the 2019 and 2023 totals, which the report described as “helpful comparisons outdoors of the pandemic-fueled 2020 to 2022 funding cycle.”

Within the first half of this yr, US digital well being startups raised $5.7 billion throughout 266 offers. The sector’s whole annual VC fundraising for 2019 and 2023 was $8.2 billion and $10.7 billion, respectively.

A big portion of the offers that happened within the first half of 2024 have been early-stage offers, which means they occurred throughout seed, Collection A, or Collection B rounds. These early-stage transactions accounted for 84% of all offers within the first half of the yr.

Collection A exercise was notably strong within the first half of 2024, with a median deal measurement of $15 million, which is $3 million bigger than final yr’s median Collection A deal measurement. The sturdy Collection A exercise was led by massive rounds from startups like Zephyr AI, which raised $111 million in March, and Allez Well being, which raised $60 million in Could.

Rock Well being’s report additionally famous that unlabeled rounds — those who don’t have a delegated letter corresponding to “Collection B” or “Collection C” — are beginning to decline within the digital well being startup sector. Final yr noticed an enormous inflow of those offers, setting a brand new annual file with 44% of final yr’s digital well being fundraising offers being unlabeled. Within the first half of this yr, 40% of offers have been unlabeled.

“Q1 and Q2 2024 noticed a decline within the share of will increase that weren’t labeled (47% and 33% respectively), down from a peak of 55% in This autumn 2023. This decline might mark the start of our return to a extra ‘regular’ rhythm of labeled will increase, one thing we forecast for 2024,” the report stated.

It’s additionally value noting that three digital well being corporations exited the startup market within the second quarter of this yr — after 21 months with no public exit. Distant fetal monitoring platform Nuvo exited the market through a SPAC merger in Could, and income cycle firm Waystar and precision diagnostics firm Tempus AI launched IPOs in June.

In a press release issued to MedCity InformationKeith Figlioli, managing associate of LRVHealth, stated he finds the newest information from Rock Well being promising.

“We’re in an lively and steady market, which would be the new regular. Good corporations will discover their technique to strong progress and capital will likely be obtainable to corporations with confirmed, sustainable enterprise fashions and engaging unit economics. Final yr, simply over $10 billion of recent cash was invested and we’re on observe for the same quantity this yr. The brand new regular will doubtless stay round that greenback determine for some time as funding stays steady. The indicators are encouraging on each the M&A and IPO fronts, however we’re nonetheless within the early phases,” he stated.

Picture: Feodora Chiosea, Getty Photos