In the 36th edition of our Healthcare Mosaic report, we take a deeper dive into the digital healthcare marketplace—with a focus on consumer-facing solutions—where private market funding, M&A activity, and valuations all appear fairly robust to us, despite relatively anemic equity market performance from the publicly traded operators. More specifically, in this thematic report, we analyze:
- The rise and fall of publicly traded digital healthcare companies
- Key industry trends that we believe provide support for continued growth in digital health solutions
- A review of recent private market funding and M&A activity in the space
- Key areas of employer focus and expected purchasing trends for digital health solutions
- Our current thoughts on the relative market positioning and valuations of our covered digital health operators—where we see a material disconnect between market valuations and the intrinsic value in many organizations
- An overview of select companies—in both the public and private markets—that we believe are well-positioned to benefit from these trends
With nearly $60 billion raised for digital health deals post-COVID-19 pandemic, many entities improved patient outcomes and lowered costs. Despite initial euphoria, demand abated due to interest rate hikes and unfulfilled ROI promises, leading to tumbling stock prices. As of 2025, however, we believe the industry is in good standing, as strong organizations with innovation engines are well-positioned to address cost and quality needs at scale.
William Blair analysts believe this presents a good time for investors to reengage in the space as a long-term investment area, as we see a fundamental disconnect between intrinsic values and public market valuations in many digital health names.
For more information on William Blair’s healthcare research please contact us or your William Blair representative.
Listen to the William Blair Thinking Presents podcast episode here: Digital Health Update—No Longer Unicorns, But Phoenixes Abound