|
Rock Health Q3, Notable Flow AI, and Signals Out of Sync
October 9, 2025
|
|
|
|
|
Together with
|
|
|
|
“There’s a set of companies raising quickly at high valuations, and then there’s everyone else. We’ve seen companies break through when they hit a meaningful milestone – like landing a major distribution deal, getting FDA clearance, or proving commercial traction – that becomes the hook for the next round.”
|
|
Million Lives Fund Partner Becca Shmukler
|
|
|
DiMe CEO Jennifer Goldsack is a force. Jenn founded the Digital Medicine Society to steer the healthcare industry toward a digital future that’s proactive, personalized, and outcome‑driven. The Healthcare 2030 Impact Thesis is DiMe’s blueprint to make that happen, and it was great to have Jenn walk us through it on the latest episode of the Digital Health Wire Show.
|
|
|
|
Rock Health’s always-excellent digital health market overview painted an interesting picture for Q3, with venture funding continuing to climb despite several “signals out of sync.”
We’re steady on the surface. Digital health startups raised $3.5B across 107 deals in the third quarter, outpacing last year by a decent margin and bringing the year-to-date total to $9.9B across 351 rounds [Chart: Q3 Funding].
- Deal volume continued to slow, but fewer raises yielded larger checks. Q3 saw 107 funding rounds, down from 120 in Q2 and 124 in Q1.
- The average raise in 2025 now stands at $28.1M (up from $20.4M in 2024), and we’ve already seen 19 mega-rounds above $100M – surpassing last year’s total with a quarter left to go.
The middle is murky. Rock Health rolled up its sleeves and calculated widely variable trends in mid-market funding.
- Series B deal flow has thinned, with just 30 raises through Q3, compared to an average of more than 60 annually over the past three years.
- As fewer startups reach Series B, those that do are stretching the range of what a B round can be. Series B deal sizes so far in 2025 spanned $11M–$210M ($199M) – the widest spread since the boom of 2021.
- Pair that with the persistent prevalence of unlabeled raises, and the thinning Series B pipeline suggests that startups are traveling increasingly winding roads to reach scale.
Activity is concentrating around workflows. The biggest theme of the Q3 report was that Clinical Workflow and Non-Clinical Workflow are now 2025’s two most-funded value propositions, capturing a combined 42% of the total funding [Chart: Value Propositions].
- A $1.3B lead separates these value propositions from the rest of the pack, and workflow tools now appear to be in a league of their own.
Startups are heading horizontal. The report also highlighted a growing group of startups pushing into adjacent workflows, such as Abridge’s partnership with Highmark Health (expanding into prior auths) and Judi Health acquiring Amino (moving into patient navigation).
- M&A volume is up 37% from last year, with 166 acquisitions through Q3 (already topping 2024’s 121 total), in large part due to these horizontal moves.
The Takeaway
The numbers look steady, but the market is also steadily splitting in half. That means that the real story going forward won’t be whether digital health startups can attract investors (they can), but whether companies can demonstrate the impact needed to land on the right side of the divide.
|
|
10 Strategies to Expedite Provider Credentialing
Lagging provider credentialing workflows can create a wave of unexpected care delays and financial setbacks. Sidestep these pitfalls by tuning into Medallion’s recording of 10 Key Strategies to Expedite Provider Credentialing and see how your organization can keep a well-oiled team and patient care intact through the ever-evolving changes seen in healthcare.
|
|
What Is It Really Like Partnering With Abridge?
Abridge is now deployed across 200+ health systems across the U.S. and will support more than 55 million healthcare conversations this year. But what is it like to partner with Abridge? Hear directly from Abridge customers in this new video.
|
|
- Heidi Hops Into Scribe Race: Australian startup Heidi hauled in $65M of Series B funding to accelerate the development of its AI scribing platform. The round vaulted Heidi’s valuation to $465M, about 6x higher than it was marked during its Series A2 back in March. The platform is geared toward automating documentation, evidence search, and follow-up communication, with coding and RCM capabilities notably absent from their latest pitch deck.
- Notable Launches Flow AI: Notable introduced Flow AI, a conversational assistant embedded directly within its Flow Builder platform. Flow AI takes Flow Builder from a low-code platform to an even-lower-code platform, allowing users to design and deploy intelligent workflows by simply describing what they want to build. Notable’s AI Agents are reportedly already automating over 1.5M tasks daily, and Flow AI will make it easier for healthcare orgs to streamline workflows even further.
- Reveal Yourself Robots: Answering Service Care put out a cross-industry AI Call Report that found 8 in 10 Americans demand to know if they’re speaking to AI. Of the 2,000 U.S. consumers surveyed, 27% believe that AI agents answer when they call their doctor, and 81% are convinced that it’s being used secretly. The issue is striking a nerve: 37% would lose confidence in a company if they didn’t disclose AI is answering phones, and 15% said they’d boycott a brand entirely.
- Wysa Acquires Kins: Wysa is rising from the ashes of its mental health chatbot with the acquisition of physical therapy startup Kins. Wysa is looking to move into managing adjacent needs to primary care, such as mental health or chronic pain, through physical therapy. It’s the opposite of the usual digital health playbook. Instead of scooping up an AI startup to bolster its existing services, Wysa started with AI and is acquiring new channels to help deploy it.
- PwC Future of Health: PwC expects U.S. healthcare spending to top $8.6T by 2035, with up to a trillion of that shifting from traditional brick-and-mortar models to digital-first strategies. The full Future of Health report is worth taking the time to check out, but the gist is that the medical cost trend remains elevated at ~8%, and unless AI-driven breakthroughs lead to more proactive care, we’re definitely not set up to successfully care for an aging population.
- Nabla Joins Epic Toolbox: Nabla is now available within Epic Toolbox for Ambient Voice Recognition, bringing its ambient AI assistant directly to the Haiku app and enabling mobile-first access without separate logins or workflow disruptions. The move allows emergency and inpatient teams to document seamlessly across care settings, improves upon existing collaboration features, and deepens Nabla’s alignment with Epic’s evolving infrastructure.
- Digital Twins Outperform Traditional Care: A Validation Institute report found that Twin Health’s AI-enabled digital twins for metabolic health outperform both traditional care and “legacy digital health solutions.” The report arrives hot on the heels of NEJM Catalyst publishing similarly impressive results, with an RCT showing that Twin beat industry benchmarks for controlling A1C, deprescribing GLP-1s without rebound weight gain, and overall patient adherence.
- Amgen Launches Direct-to-Patient Program: Amgen launched its AmgenNow direct-to-patient program to offer Repatha (evolocumab) at $239 monthly, nearly 60% below current U.S. list price. The new DTP program will serve all patient types including high-deductible plans, Medicare, and Medicaid beneficiaries – without prior authorization or step therapy requirements. Amgen recently released clinical trial data showing that Repatha significantly reduces the risk of a heart attack in combination with statins.
- TigerConnect Alarm Management: TigerConnect received 510(k) clearance for its Alarm Management solution, making it the first cloud-native product of its kind to receive a nod from the FDA. While traditional alarm management systems require extensive on-premises infrastructure to maintain, TigerConnect’s AWS-powered solution provides a fully managed service that routes alerts for actionable patient events to the right caregiver at the right time, with upgrades and monitoring handled in the cloud.
- MediView Series A Raises $24M: Augmented reality software developer MediView closed a $24M Series A funding round that included investments from GE HealthCare, Cleveland Clinic, and Mayo Clinic. MediView will use the funds to further commercialize its augmented reality solutions, including the XR90 augmented reality surgical navigation system, which got FDA clearance in 2023 for guiding minimally invasive procedures. The company will also expand industry partnerships, such as its partnership with GE on the OmnifyXR interventional suite.
|
|
Start Getting Leads From ChatGPT and Google AI
If your healthcare company isn’t getting leads from ChatGPT and Google AI Overviews, it’s probably because your content isn’t optimized for AI search. Tely AI runs keywords and questions research, generates and publishes GEO content, and captures new leads – all on autopilot. Create your first article on us to start filling your pipeline with patients and partners from today’s lead sources.
|
|
Withings and Babyscripts Tackle Maternal Health
Babyscripts is teaming up with Withings Health Solutions to tackle the leading cause of maternal mortality in the U.S. – hypertensive disorders of pregnancy, including preeclampsia. Learn how remote patient monitoring with BPM Pro 2 is helping Babyscripts keep mothers safe through personalized support when they need it most.
|
|
- Under the Hood of Navina’s AI: Navina’s AI engine harnesses over 600 proprietary algorithms to transform fragmented patient data into actionable clinical intelligence at the point of care. It’s shaped with the expertise of physicians to turn multiple data sources (EHR, HIE, claims, care gap files, etc.) into contextualized insights like suspected conditions or evidence for care gap closures – each linked back to the original source. Download the whitepaper to see examples of Navina’s AI in action.
- Join Nabla at the Global Summit for Clinician Burnout: Nabla is partnering with the Ending Clinician Burnout Global Summit 2025 (Nov 6-7, virtual), a global community working together to reimagine healthcare and build lasting solutions to the clinician burnout crisis. This two-day event will bring together leading institutions like Mayo Clinic, Duke Health, and Johns Hopkins to design systemic changes that protect clinicians and strengthen patient care. Learn more and register here.
|
|
|
|
|
