Skip to main content

Countering the broader recent downward trend in fundraising, several digital health startups landed double-digit increases at the seed stage in the third quarter of 2022, according to new data from CB Insights.

Why is this important: Even seedlings have their strengths. Although investors have generally reacted to this year’s tumultuous market by avoiding big fundraising rounds, some startups have still managed to score big early rounds, according to the data.

Among these companies were several hybrid care companies catering to a specific condition or population.

The big question: Is it even a seed if it’s $32 million?

Details: Six companies raised so-called funding rounds exceeding $10 million in Q3 ’22. Among them was this trio of hybrid care companies:

  • Rippl Care, a dementia-focused startup offering therapy, medication management and remote monitoring, raised $32 million in September.
  • Psych Hub, a company founded by former Rep. Patrick J. Kennedy who is running on Mental Health’s Angie List, secured $16 million in August.
  • Caraway Health, a virtual reproductive and mental health startup focused on college-age women, raised $10.5 million in July.

By the numbers: With investors generally avoiding later-stage deals, early-stage deals accounted for 60% of digital health deals in 2022 year-to-date, according to CB Insights. Meanwhile:

  • Mid-stage operations represented 16% of the year’s activity.
  • Late-stage deals accounted for 10% of deals.
  • Other raises, such as extension towers, accounted for the remaining 14%.

💭 Our thought bubble: With murky exit options as public markets continue to turmoil, we’re not surprised to see so many early-stage checks.