U.S. digital health startups raised $10.1 billion in venture funding across 497 deals in 2024, a slight decline from 2023’s $10.8 billion. Despite exceeding the $8.2 billion raised in 2019, inflation-adjusted figures show 2024’s funding is about $8.3 billion in 2019 dollars. Factors for the reduced funding include a shift towards early-stage investments, with 63% of rounds going to Seed, Series A, and B startups. Late-stage deals had smaller median sizes compared to previous years. The report also highlights concentrated VC activity, with 30 funds accounting for 75% of capital, and strong interest in AI-enabled startups.