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‘The Moat is No Longer Technological’: How Digital Health Fundraising Changed in H1 - MedCity News

medcitynews.com·Jul 15, 2026

Digital health startups raised $7.4 billion in the first half of 2026, an increase from $6.4 billion in the same period in 2025, with a notable concentration of funding in larger deals, particularly in mental health and weight management sectors. Investors are increasingly prioritizing founder expertise and unique competitive advantages over mere AI capabilities, reflecting a shift in market dynamics.

For a professional tracking healthtech and related fields, the key insight is that AI is no longer a unique selling point in digital health; instead, investors are prioritizing founder expertise, platform ownership, and strategic partnerships. This shift signals that success in healthtech now hinges more on industry-specific insights and operational capabilities than solely on AI capabilities. Consider focusing on these aspects when evaluating potential investments or building strategic partnerships.

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