Digital health made a powerful comeback in Q1 2025. And the leading market intelligence firms are here to break it down.
Both CB Insights and Rock Health released quarterly reports that highlight a surge in funding, the AI gold rush, and the return of big-ticket M&A deals.
But dig a little deeper, and you’ll see their perspectives diverge in ways that matter.
While CB Insights brings a numbers-heavy, predictive lens to the space, Rock Health zooms out to frame the strategic shifts reshaping healthcare innovation.
Whether you’re an investor hunting benchmarks or an operator eyeing your next partnership move, understanding both views gives you a dual advantage: the data to act and the insight to act wisely.
We’ve previously analysed the reports from both the leaders. You can check them out here:
Digital health in Q1 2025 is off to fast, fearless start: Rock Health report
Investors bet big on AI & proven players: CB Insights’ Q1’25 Digital Health report
Let’s break down where they agree, where they don’t and what it all means for the future of digital health.
CB Insights vs Rock Health on Q1 2025 Digital Health
The CB Insights and Rock Health Q1 2025 digital health reports align on sector trends but differ in focus, methodology, and insights, offering unique value for different stakeholders.
Funding recovery:
CB Insights documents a dramatic 47% quarterly funding jump, while Rock Health counts a $3 billion total investment across 122 transactions.
More selective investments:
Both note investors are writing bigger checks to fewer companies. CB Insights shows deal volume down 9%, while Rock Health observes a steady deal count but larger average sizes.
AI’s growing influence:
AI-focused firms now command 60% of all funding (per CB Insights), with Rock Health emphasising how companies are restructuring around AI through flexible tech architectures.
M&A comeback:
Major acquisitions have returned, exemplified by CB’s highlight of the $1.6 billion CentralReach deal, while Rock Health reveals most deals (67%) now involve startups buying other startups.
Key differentiators in the reports
Here are the primary differences:
Analytical lens
CB Insights takes a data-first approach, emphasising metrics like unicorn creation timelines (down to 6 years) and Mosaic scores for AI startups. Their report quantifies trends like the 96% QoQ late-stage deal growth.
Rock Health provides strategic framing through its “leapfrogging” thesis, interpreting market movements as deliberate corporate strategies (e.g., tapestry weaving M&A) rather than purely statistical trends.
Sector segmentation
CB Insights breaks down investment by AI sub-sectors (e.g., $372M for clinical documentation tools), while Rock Health categorises activity by business model adaptations (channel partnerships, modular tech stacks).
Forward-looking insights
Rock Health uniquely identifies four actionable strategies for market participants, such as Labcorp’s “cooperative competition” with disruptors. CB Insights focuses more on predictive metrics like OpenEvidence’s 35% acquisition probability.
Complementary value
For investors, CB Insights offers granular benchmarking data (e.g., median Series D+ round sizes) to evaluate portfolio performance. Rock Health serves operators with its framework for strategic decision-making, particularly around partnerships and M&A timing.
Notable divergence
Rock Health spotlights policy impacts (new administration changes) absent in CB Insights’ analysis, while CB provides deeper international coverage (Asia’s first unicorn since 2021). The reports differ slightly on early-stage activity: CB notes decline to 51% of deals versus Rock Health’s 83% figure.
The bottom line
The two reports offer complementary rather than conflicting perspectives, with each bringing unique value to understanding the digital health landscape.
CB Insights delivers data-driven market intelligence, quantifying key trends and performance metrics, while Rock Health provides actionable frameworks for navigating these trends.
Together, these reports equip leaders with both the compass and the map. They give quantitative benchmarks to identify opportunities and strategic frameworks to capitalise on them.
Here is our analysis of both reports for more insights:
Digital health in Q1 2025 is off to fast, fearless start: Rock Health report
Investors bet big on AI & proven players: CB Insights’ Q1’25 Digital Health report
-By Alkama Sohail and the AHT Team
