September’s Top 5 Health Tech Funding Breakthroughs: A Monthly Roundup

health tech,with companies focusing on kidney care,pharmacy benefit management,cancer support,and AI-driven patient engagement securing major funding rounds.">

October 3, 2025

September proved too be a landmark month for innovation in healthcare, as several Health tech companies announced considerable funding rounds, injecting over $1.2 billion into the sector. These investments signal a strong market confidence in technologies designed to improve patient care,streamline healthcare processes,and address critical needs in specialized areas like kidney disease and oncology.

Strive Health Leads with $550 Million Investment

Denver, Colorado-based Strive health secured a massive $550 million in funding, split between $300 million in equity and $250 million in debt. The company concentrates on providing comprehensive care solutions for individuals with kidney disease, encompassing chronic kidney disease, end-stage kidney disease, dialysis, and kidney transplant support. Strive Health utilizes both cutting-edge technology and Artificial Intelligence to tailor interventions based on a patient’s specific disease stage.

New Enterprise Associates (NEA) spearheaded the equity financing, with participation from industry giants like CVS Health Ventures and CapitalG. Hercules Capital led the debt funding. these funds will be strategically allocated to enhance Strive Health’s AI capabilities and broaden its service offerings to include conditions such as congestive heart failure.

Capital Rx Rebrands as Judi Health Following $400 million Funding

Capital Rx, now rebranding as Judi Health, has secured $400 million in funding to expand its reach beyond customary pharmacy benefit management.The company offers a clear approach to pharmacy benefits and a comprehensive health benefit management platform for employers, TPAs, and health plans. it also provides support for navigating pharmacy,medical,vision,and dental benefits,alongside a software solution for streamlining health plan claim workflows.

Wellington Management and General Catalyst led the Series F funding round, with contributions from Generation Investment Management and other prominent investors. The investment will also support further investments from existing stakeholders. This funding coincides with a strategic rebranding designed to reflect the company’s broadening scope of services.

Thyme Care Raises $97 Million to Expand Cancer Care Support

Nashville-based Thyme Care received $97 million in Series D funding to bolster its mission of supporting patients battling cancer. The company partners with health plans, employers, and healthcare providers to deliver care navigation, data insights, and therapeutic interventions. Thyme Care assists patients throughout their cancer journey, from understanding diagnoses to finding specialized doctors and accessing continuous care between appointments.

This funding round saw participation from CVS Health Ventures, Foresite Capital, and a16z Bio + health, bringing Thyme Care’s total funding to $275 million.The company plans to leverage this capital to expand payer contracts, scale its services, and further invest in the progress of Artificial Intelligence tools to improve patient outcomes.

AI-Powered Patient Engagement Gains Momentum

Two additional companies are demonstrating the growing importance of Artificial Intelligence in patient care. San Francisco-based Assort Health secured $76 million in Series B funding, while Imagine Pediatrics obtained $67 million in Series B funding.

Assort Health utilizes AI agents to enhance patient engagement for provider practices and hospitals, automating routine tasks like phone inquiries and appointment scheduling.Imagine Pediatrics provides virtual and at-home care for children with special healthcare needs, leveraging technology to deliver comprehensive support.

Company	Funding Amount	Focus Area
Strive Health	$550 Million	Kidney Care
Capital Rx (Judi Health)	$400 Million	Pharmacy Benefit Management & Health Benefits
Thyme Care	$97 Million	Cancer Care Support
Assort Health	$76 Million	AI-Powered Patient Engagement
Imagine Pediatrics	$67 Million	Special Needs Pediatric Care

Did You Know? The health tech industry has experienced a compound annual growth rate (CAGR) of over 15% in the last five years, driven by factors like increased adoption of telehealth, rising healthcare costs, and advancements in AI and data analytics.

Pro Tip: Investors are increasingly prioritizing health tech companies that demonstrate a clear path to value-based care, focusing on improving patient outcomes while reducing overall healthcare expenses.

These recent funding rounds underscore the growing investment in health tech and its potential to revolutionize healthcare. What impact will these advancements have on access to care for underserved populations? How will AI continue to reshape the patient experience in the coming years?

The Rising Tide of Health Tech Investment

The surge in funding for health tech companies isn’t a fleeting trend. It reflects a fundamental shift in the healthcare landscape, with greater emphasis on preventative care, personalized medicine, and digital solutions. A recent report by Rock Health indicates that digital health funding exceeded $8 billion in the frist half of 2024 alone, demonstrating a sustained momentum. This growth is fueled by the need to address systemic inefficiencies, improve health equity, and empower patients to take more active roles in their own care.

Frequently Asked Questions about Health Tech Funding

What is driving the increase in funding for health tech?

Several factors are contributing, including the growing demand for telehealth, the potential of AI to improve healthcare outcomes, and the need to reduce healthcare costs.

how is AI being used in health tech?

AI is being used for a wide range of applications, including disease diagnosis, personalized treatment plans, drug discovery, and patient engagement.

What is value-based care and why is it attracting investment?

Value-based care focuses on improving patient outcomes while reducing costs. Investors are drawn to companies that can demonstrate a positive impact on both.

What role do Pharmacy Benefit Managers play in Health Tech?

Pharmacy Benefit Managers, like Capital Rx/Judi Health, are leveraging technology to increase openness, reduce costs, and improve access to prescription medications.

What are the benefits of virtual and at-home care for children with special needs?

Virtual and at-home care can provide convenient, accessible, and personalized support for children with complex medical needs and their families.

Share your thoughts on these exciting developments in the comments below!

What is the potential impact of PathAI’s technology on the speed of drug progress?

AI-Powered Diagnostics Receive Major Boost

September saw a significant influx of investment into Artificial Intelligence (AI) driven diagnostic tools. Leading the charge was PathAI, a company specializing in AI-powered pathology.They secured $100 million in Series C funding led by D1 Capital Partners. This funding will be used to expand their platform, which assists pathologists in making more accurate diagnoses, notably in cancer.

* Key Technology: Deep learning algorithms analyzing pathology slides.

* Impact: Potential to reduce diagnostic errors, improve patient outcomes, and accelerate drug development.

* Related Keywords: AI in healthcare, digital pathology, cancer diagnostics, machine learning, precision medicine.

Remote Patient Monitoring Gains Traction with Biofourmis

Biofourmis, a Boston-based digital therapeutics company, raised $300 million in a Series D round. This significant investment underscores the growing demand for remote patient monitoring (RPM) solutions. Biofourmis’ platform combines wearable sensors with AI analytics to provide real-time insights into patient health,enabling proactive intervention and personalized care.

* Focus areas: Cardiovascular disease, oncology, and respiratory conditions.

* Benefits of RPM: Reduced hospital readmissions, improved medication adherence, and enhanced patient engagement.

* Related Keywords: remote patient monitoring, digital therapeutics, wearable sensors, telehealth, chronic disease management.

Mental Health Tech Continues to Attract investment – Koa Health

the mental health tech space remains a hotbed for innovation and investment. Koa Health, a digital mental healthcare provider, announced a $50 million Series B funding round. Their platform offers evidence-based digital therapies and personalized support for employees struggling with stress,anxiety,and depression.

* Unique approach: focus on preventative mental healthcare within the workplace.

* Growing Need: Increasing awareness of mental health challenges and the demand for accessible, affordable solutions.

* Related Keywords: mental health tech, digital mental health, workplace wellness, telehealth, behavioral health.

Precision Oncology Advances with Iterative Scopes

Iterative Scopes, a company developing AI-powered endoscopes for early cancer detection, secured $75 million in Series B funding. Their technology aims to improve the accuracy and efficiency of colonoscopies, a critical screening tool for colorectal cancer.

* How it effectively works: AI algorithms analyze real-time video footage from endoscopes to identify subtle signs of polyps and other abnormalities.

* Impact: Potential to increase early detection rates and reduce the incidence of colorectal cancer.

* Related Keywords: precision oncology, early cancer detection, AI endoscopy, colorectal cancer screening, medical imaging.

Virtual Care platform – Amwell Expansion Fueled by Funding

Amwell,a leading telehealth provider,continued its expansion with a strategic investment of $25 million. While not a traditional funding round, this investment signals continued confidence in the virtual care market. Amwell plans to use the funds to enhance its platform and expand its network of providers.

* Key Features: Video consultations, remote monitoring, and chronic condition management.

* Market Trend: Increasing consumer demand for convenient, accessible healthcare options.

* Related Keywords: telehealth, virtual care, online doctor, remote consultations, healthcare technology.

The rise of Digital Biomarkers: A Key Trend

Across these funding breakthroughs, a common thread emerges: the increasing importance of digital biomarkers. These are quantifiable physiological and behavioral data collected through digital devices (wearables, smartphones, etc.) that can be used to assess health status and predict disease risk.

* Examples: Heart rate variability, sleep patterns, activity levels, voice analysis.

* Benefits: Personalized medicine, proactive healthcare, and improved clinical trial efficiency.

* Related Keywords: digital biomarkers, wearable technology, health data, personalized healthcare, predictive analytics.

practical Tips for Investors in Health tech

* Focus on Regulatory Pathways: Understand the FDA approval process and the challenges of bringing new health tech products to market.

* Assess Data Privacy and Security: Ensure companies have robust data protection measures in place to comply with HIPAA and other regulations.

* Evaluate Clinical Validation: Look for evidence-based solutions with strong clinical validation data.

* Consider Reimbursement Models: Understand how the technology will be reimbursed by payers (insurance companies, government programs).

* Prioritize Scalability: Invest in companies with a clear path to scalability and market adoption.