NEW YORK, NY – Healthcare technology transactions backed by private equity and venture capital reached $15.62 billion in 2024, marking the highest level in two years as investors increasingly recognize the transformative potential of digital health solutions. This surge represents a fundamental shift in how healthcare is delivered globally, with artificial intelligence (AI), telemedicine, and digital therapeutics (software-based medical treatments) driving unprecedented innovation across both developed and emerging markets.
The healthcare technology sector demonstrated remarkable resilience in 2024, with public health tech stocks increasing by 12% while maintaining performance levels comparable to high-growth software companies. Private equity firms (investment companies that buy established businesses) capitalized on historically low valuations, completing major acquisitions including revenue and billing services company R1 RCM’s $8.9 billion take-private transaction in August and provider software company EngageSmart’s $4 billion acquisition in October 2023.
Central and Eastern European (CEE) markets emerged as significant players in this global expansion, with artificial intelligence capturing 45% of total investment in Q1 2024, while climate technology attracted 26% of regional funding. The CEE region, encompassing countries like Poland, Estonia, Lithuania, and Bulgaria, has become a hotbed for health technology innovation due to lower development costs, highly skilled technical talent, and supportive government policies.
Artificial Intelligence Dominates Global Funding
The global AI in healthcare market is projected to grow from $39.25 billion in 2025 to $504.17 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 44.0% during the forecast period. In 2024, U.S. private AI investment reached $109.1 billion, nearly 12 times higher than China’s $9.3 billion and 24 times the U.K.’s $4.5 billion, establishing American dominance in healthcare AI development.
Within health technology, two AI categories are rising to the top of investor interest: AI documentation and AI coding, as physicians seek tools to streamline administrative work following COVID-19 burnout. AI note-taking and documentation companies like Abridge, Suki ($70 million), and Regard ($61 million) have all raised significant funding rounds in the past nine months, with Abridge reportedly raising $250 million in October at a pre-money valuation of $2.5 billion.
Artificial intelligence diagnostic tools are revolutionizing medical detection capabilities, with Google’s DeepMind Health demonstrating the ability to detect diabetic retinopathy and macular edema in eye scans with accuracy that rivals expert clinicians. Diabetic retinopathy is a diabetes-related eye condition that can cause blindness, while macular edema involves swelling in the central part of the retina that affects vision. These AI systems analyze vast datasets of medical images to identify patterns that human doctors might miss.
Central Eastern European Innovation Hub
CEE startups are collectively worth €213 billion in enterprise value, with Poland, Estonia, and Lithuania leading regional activity through 45, 16, and 14 funding rounds respectively in Q3 2024 alone. Since the start of 2025, German health technology companies have raised nearly €523 million, with Berlin-based medical knowledge platform Amboss completing a €240 million funding round in March.
The fastest-growing health technology companies in DACH (Germany, Austria, Switzerland) and CEE regions include Berlin-based Nelly, a financial operating system for medical practices that achieved 559.03% two-year compound annual growth rate (CAGR). Nelly, founded in 2021 by former Klarna and Eventbrite employees, has raised €68 million including a €50 million Series B in January led by Cathay Innovation and Notion Capital to digitize the patient journey.
Central and Eastern Europe gained recognition in Dealroom’s 2025 Global Tech Ecosystem Index, with Vilnius (Lithuania), Warsaw (Poland), and Zagreb (Croatia) named among the world’s top 100 emerging innovation hubs. Vilnius rose 18 places from the previous year, ranking highest among Baltic capitals, reflecting investments in fintech regulation, university partnerships, and state-backed acceleration programs.
Emerging Markets Show Mixed Performance
Despite impressive global growth, African health technology startups raised only $200,000 in Q1 2025, reflecting significant disparities between developed and emerging markets. This compares unfavorably to Latin American health tech startups that raised $49 million, Asian companies that secured $300 million, and European startups that attracted $1.5 billion during the same period.
Venture funding in Africa declined by 25% in 2024, with startups raising $2.2 billion compared to $2.9 billion in 2023, driven primarily by reduced debt financing which comprised only 30% of total funding. However, late-year rebounds were driven by significant deals including Moniepoint’s $110 million Series C round and Tyme Bank’s $250 million Series D, which achieved unicorn status (company valuations exceeding $1 billion).
The health technology landscape in Latin America presents significant opportunities, with the digital health market estimated to reach $20 billion by 2024, driven by integration of artificial intelligence, big data, and telemedicine solutions. Success stories include a Chilean hospital reducing medication delivery times from 44 to 13 minutes and a Mexican laboratory chain increasing patient attendance by 39% through digital appointment confirmations.
Investment Trends Reshaping Healthcare Delivery
The Internet of Medical Things (IoMT) market is projected to grow from $79.64 billion in 2024 to $97.73 billion in 2025 at a CAGR of 22.7%, encompassing wearable devices, remote monitoring systems, and connected medical equipment. Research by Stanford Medicine demonstrated that Apple Watch heart rate monitoring and ECG features can detect irregular heartbeats with over 97% accuracy, enabling remote patient monitoring and early intervention.
Telemedicine market growth is projected at 24.3% annually from 2024 to 2030, extending beyond virtual doctor visits to encompass comprehensive Hospital-at-Home models that integrate at-home diagnostics, wearable devices, and continuous monitoring. Specialized virtual services are emerging in behavioral health, chronic disease management, and women’s health, with platforms addressing underserved populations through culturally sensitive, affordable solutions.
European health technology funding reached $10.4 billion in 2024, an increase from $9.7 billion in 2023, with major raises including Swiss drug development company EraCal Therapeutics’ €235 million round and Germany’s ITM Radiopharma’s €188 million funding. The most active early-stage investors include Calm/Storm (writing €250,000-€1 million checks), Sofinnova Partners (specializing in life sciences), and Scottish Enterprise (government-backed investment agency).
Future Market Outlook and Opportunities
Foundation model companies are launching specialized healthcare and life sciences applications in 2025, with OpenAI actively building its health AI team, Anthropic gaining traction with healthcare firms, and Google releasing Health AI Developer Foundation models for chest X-rays, dermatology, and pathology applications. Foundation models are large AI systems trained on massive datasets that can be adapted for specific medical applications.
Venture capital funding for digital health in the United States has grown fivefold between 2013 and 2023, with significant resources channeled into longevity-focused research and development as part of the expanding quality-of-life market. Consumer demand is driving growth, with 70% of consumers in the United Kingdom and United States and 85% in China purchasing more health and wellness products in 2024 than in any prior year.
The global healthcare technology market is expected to reach $1,251.38 billion by 2029 at a 20.6% CAGR, segmented across healthcare payers solutions, healthcare providers solutions, and healthcare IT outsourcing solutions. This growth is driven by increasing demand for precision medicine, genomics, wearable technology, and sustainable healthcare delivery models that reduce costs while improving patient outcomes.
This analysis is based on investment data from Rock Health, Bessemer Venture Partners, Dealroom, and regional venture capital reports covering funding activity from Q1 2024 through Q1 2025. Market projections incorporate data from Fortune Business Insights, The Business Research Company, and government healthcare technology initiatives across North America, Europe, Asia-Pacific, Latin America, and Africa.
Key Takeaways
- Global health tech investments reached record $15.6 billion in 2024, driven by artificial intelligence solutions capturing 45% of funding activity worldwide.
- Central Eastern European markets emerged as innovation leaders, with Poland, Estonia, and Lithuania driving significant growth in digital therapeutics and telemedicine.
- Emerging markets face funding challenges with African startups raising only $200,000 compared to $3.4 billion in North America during Q1 2025.
