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Doctors at Cedars-Sinai develop AI-powered mental health ‘robot' therapist
Doctors at Cedars-Sinai develop AI-powered mental health ‘robot' therapist

Los Angeles Times

time22-07-2025

  • Health
  • Los Angeles Times

Doctors at Cedars-Sinai develop AI-powered mental health ‘robot' therapist

Misty Williams checks into the emergency room at Cedars-Sinai Medical Center from time to time for treatment of debilitating pain from sickle cell disease, which causes red blood cells to stiffen and block the flow of blood. After pain medication and hydration are ordered, the 41-year-old Los Angeles resident makes an unusual request: access to a virtual reality headset with an artificial intelligence-powered chatbot that can carry on a dialogue with her. With the headset on, Williams finds herself in a virtual garden, butterflies drifting around her. A humanoid robot greets her with a soothing female voice. 'Hi, and welcome. My name is Xaia, and I'm your mental health ally,' it says. 'How can I help?' After a session, Williams' pain eases and her mind is calmer. 'Mentally and physically, I feel more at peace,' Williams said. Xaia (pronounced ZAI-uh) is just one of many ways that artificial intelligence technology is barreling its way into the burgeoning sector known as digital health. Digital health startups using AI accounted for an estimated $3.9 billion in funding in 2024, or 38% of the sector's total, according to the digital health advisory firm Rock Health. Mental health was the top-funded clinical area, drawing $1.4 billion. Major medical institutions in Los Angeles are embracing the trend. UCLA Health is using AI to help doctors catch strokes faster, reduce hospital re-admissions and spend more time with patients by automating medical notes, said Paul Lukac, chief AI officer. Keck Medicine of USC plans to offer employees a commercial AI chat tool to support stress management, according to Dr. Steven Siegel, chief mental health and wellness officer. At Cedars-Sinai, Xaia — an acronym for eXtended-reality Artificially Intelligent Ally — was designed and programmed by Dr. Omer Liran, with ideas and research support from Dr. Brennan Spiegel and therapeutic input from clinical psychologist Robert Chernoff, in collaboration with the medical center's Technology Ventures. VRx Health, a for-profit company founded by Liran, holds an exclusive license from Cedars-Sinai to market Xaia commercially. Cedars-Sinai and several private investors hold equity in the company. A version like the one Misty Williams uses is available to the public via the Apple Vision virtual reality headsets for $19.99 a month. A VR version for the Meta headset is freely available only to researchers. A web and mobile version is accessible to licensed clinicians for tiered pricing between $99 and $399-plus per month, which allows them to invite patients to use the tool. Liran, a psychiatrist, said Xaia is designed to supplement, and not replace, the services of mental health therapists amid a national shortage of providers. 'Even if somebody needs to be seen once a week, they may only get seen once a month,' he said. The Xaia app draws from hundreds of therapy transcripts, both from real sessions and mock sessions created by experts to sound like an actual therapist. For example, if users tell Xaia they're struggling with a new cancer diagnosis, the robot might say, 'That must be very hard for you,' then ask how it's affecting their mood, and what they find themselves doing when they're overwhelmed. 'Trying to stay positive when things feel so heavy must take a lot of energy,' the chatbot says. 'When you notice yourself being pulled back into those difficult thoughts, what usually happens next? Do you find yourself withdrawing, or do you turn to anyone for support?' So far, Xaia has been used by about 300 patients across various research studies at Cedars-Sinai, including those focused on chronic pain, alcohol use disorder, and irritable bowel syndrome, said Spiegel, director of health services research at Cedars-Sinai. Many people with chronic illnesses also struggle with anxiety or depression, Spiegel said. Physical and emotional symptoms feed off each other, and tools like Xaia aim to help with both. The tool isn't covered by insurance yet, but billing codes for virtual reality therapy and digital health services do exist, and other hospitals like the Mayo Clinic are beginning to use them. VRx has an agreement to deploy Xaia at Mayo Clinic, according to VRx Chief Executive Gabe Zetter. Xaia isn't the only app of its kind. Woebot, a pioneering chatbot developed by psychologist Alison Darcy while at Stanford, used scripted conversations based on cognitive behavioral therapy to support users with anxiety and depression. Though it reached 1.5 million users, the company shut down the app in July. Darcy said the company is now focused on building new tools with large language models, since AI is moving faster than regulators like the Food and Drug Administration can keep up. In recent years, some emotional support chatbots have been blamed for deepening distress, including one incident in which a Florida teen died by suicide in 2024 after extended conversations with a chatbot. Such incidents underscore the risks of emotionally responsive AI tools, said Todd Essig, a psychologist and founder and co-chair of the American Psychoanalytic Assn.'s Council on Artificial Intelligence. 'Even after the most loving, empathic response, an AI doesn't care if you drive to the store or drive off a cliff,' Essig said. AI programs learn to mimic human responses, Essig said, so it's up to the people building them to set clear limits and ensure they don't cause harm. When built with ethical frameworks and used under clinical supervision, tools like Xaia can support genuine therapeutic progress, functioning more like digital journals — a modern twist on the paper workbooks given to patients decades ago, said Jodi Halpern, a professor of bioethics and medical humanities at the UC Berkeley School of Public Health. But many emotional support chatbots that aren't clinically monitored are designed to mimic intimacy and build emotional bonds. 'People can experience the app as another,' Halpern said. 'But it's not actually giving them real-life experiences with other humans that are important for developing the healthy, mutually empathic curiosity that people need to participate in complex human relationships.' Halpern noted there is a difference between clinically approved mental health tools and those with no oversight. She and others are supporting a California bill sponsored by state Sen. Steve Padilla (D-Chula Vista) that would require companies developing mental health chatbots or apps to disclose whether their tools are clinically validated, regulated by the FDA or rely on generative AI. Liran said he and his partners are aware of the limitations and have built in guardrails to keep the chatbot from saying anything harmful or inappropriate. For example, one arm of the AI generates the response, and another instantly double-checks it to make sure it's safe before letting it through to the user. 'We're not just opening it up to the public,' Liran said, pointing out that the guided therapy version on mobile and desktop is available only through a licensed clinician right now and Cedars is testing Xaia in multiple studies. 'We're trying to be very careful.' In a 14-person study, patients using Xaia with mild or moderate anxiety or depression opened up about a variety of topics, including a mother who passed away and fear of being laid off. For a patient who had been having night sweats since a breakup, Xaia asked to hear more about what made the relationship feel unresolved and how it affected the patient. Some of the patients still preferred the nuance and responsiveness of a human therapist, but the medical literature suggests patients are warming up to the idea of a nonhuman therapist. In a study published in PLOS Mental Health in February, participants were asked to compare responses written by licensed therapists and those generated by ChatGPT. Not only did many struggle to tell the difference, they consistently rated the AI's replies as more empathic, culturally sensitive and emotionally engaging. Xaia's creators see the tool as an extension of the patient-therapist relationship. It's the kind of thing that might be useful if someone needs mental health support in the middle of the night or between sessions. 'We still need therapists — humans — to look other humans in the eye to have conversations about vulnerable topics,' Spiegel said. At the same time, 'it's not practical to simply bury our head in the sand and say we shouldn't do this, because AI is everywhere,' he said. 'We'll be brushing our teeth with AI before long.'

AI startups boost digital health funding in H1: Rock Health
AI startups boost digital health funding in H1: Rock Health

Yahoo

time10-07-2025

  • Business
  • Yahoo

AI startups boost digital health funding in H1: Rock Health

This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Digital health startups raked in more venture capital funding in the first half of the year, signaling the market is stabilizing following pandemic-era investment volatility, according to a report published Monday by Rock Health. U.S.-based digital health companies raised $6.4 billion in the first half of 2025, increasing modestly from $6 billion during the same period last year and $6.2 billion in 2023, the venture capital firm and consultancy said. Artificial intelligence contributed to the boost. Startups that used AI as a core part of their offerings made up a majority of digital health venture capital funding for the first time in the first half, accounting for 62% of the period's funding total. The first half of 2025 included some key developments that hinted the digital health sector — which saw record-breaking investment in 2021 followed by a funding slump in recent years — is seeing some momentum again, according to Rock Health. For example, digital health firms raised $3.4 billion in venture funding in the second quarter alone, compared with the average of $2.6 billion each quarter since the first quarter in 2023. The sector saw fewer deals in the first half, notching just 245 transactions in 2025 compared with last year's 273. However, even with a lower number of transactions, the average deal size grew to $26.1 million from $20.4 million last year as investors poured more money into late-stage rounds, according to Rock Health. U.S. digital health funding 2019 - H1 2025 This embedded content is not available in your region. Startups touting AI products also contributed to the investment increase. On average, AI-enabled firms raised $34.4 million per round, significantly larger than the $18.8 million raised by their non-AI counterparts. Funding rounds by these companies made up the lion's share of mega-deals, or fundraises worth over $100 million, as well. Overall, the first half of 2025 included 11 mega-rounds, on track to exceed the 17 large raises seen through 2024. Nine of the mega-rounds went to AI startups. Completed IPOs and SPACs 2021 - H1 2025 This embedded content is not available in your region. Meanwhile, after a long dry spell of digital health public exits, the sector saw some bright spots in the first half of the year. Digital musculoskeletal company Hinge Health and chronic condition management firm Omada Health completed initial public offerings in May and June, respectively, in positive signals for the industry's nearly dormant IPO market — just two digital health companies notched public exits in the past three years, according to Rock Health. Still, most firms are exiting through mergers and acquisitions. More than 100 M&A deals closed in the first half this year, setting the sector on course to significantly outstrip the 121 digital health purchases recorded last year. Recommended Reading Hinge Health goes public in positive signal for digital health IPOs

The AI Mental Health Market Is Booming — But Can The Next Wave Deliver Results?
The AI Mental Health Market Is Booming — But Can The Next Wave Deliver Results?

Forbes

time28-06-2025

  • Health
  • Forbes

The AI Mental Health Market Is Booming — But Can The Next Wave Deliver Results?

AI tools promise scalable mental health support, but can they actually deliver real care, or just ... More simulate it? In April of 2025, Amanda Caswell found herself on the edge of a panic attack one midnight. With no one to call and the walls closing in, she opened ChatGPT. As she wrote in her piece for Tom's Guide, the AI chatbot calmly responded, guiding her through a series of breathing techniques and mental grounding exercises. It worked, at least in that moment. Caswell isn't alone. Business Insider reported earlier that an increasing number of Americans are turning to AI chatbots like ChatGPT for emotional support, not as a novelty, but as a lifeline. A recent survey of Reddit users found many people report using ChatGPT and similar tools to cope with emotional stress. These stats paint a hopeful picture: AI stepping in where traditional mental health care can't. But they also raise a deeper question about whether these tools are actually helping. A Billion-Dollar Bet On Mental Health AI AI-powered mental health tools are everywhere — some embedded in employee assistance programs, others packaged as standalone apps or productivity companions. In the first half of 2024 alone, investors poured nearly $700 million into AI mental health startups globally, the most for any digital healthcare segment, according to Rock Health. The demand is real. Mental health conditions like depression and anxiety cost the global economy more than $1 trillion each year in lost productivity, to the World Health Organization. And per data from the CDC, over one in five U.S. adults under 45 reported symptoms in 2022. Yet, many couldn't afford therapy or were stuck on waitlists for weeks — leaving a care gap that AI tools increasingly aim to fill. Companies like are trying to do just that. Founded by Sarah Wang — a former Meta and TikTok tech leader who built AI systems for core product and global mental health initiatives — BlissBot blends neuroscience, emotional resilience training and AI to deliver what she calls 'scalable healing systems.' 'Mental health is the greatest unmet need of our generation,' Wang explained. 'AI gives us the first real shot at making healing scalable, personalized and accessible to all.' She said Blissbot was designed from scratch as an AI-native platform, a contrast to existing tools that retrofit mental health models into general-purpose assistants. Internally, the company is exploring the use of quantum-inspired algorithms to optimize mental health diagnostics, though these early claims have not yet been peer-reviewed. It also employs privacy-by-design principles, giving users control over their sensitive data. Sarah Wang- Founder, Blissbot 'We've scaled commerce and content with AI,' Wang added. 'It's time we scale healing.' Blissbot isn't alone in this shift. Other companies, like Wysa, Woebot Health and Innerworld, are also integrating evidence-based psychological frameworks into their platforms. While each takes a different approach, they share the common goal of delivering meaningful mental health outcomes. Why Outcomes Still Lag Behind Despite the flurry of innovation, mental health experts caution that much of the AI being deployed today still isn't as effective as claimed. 'Many AI mental health tools create the illusion of support,' said Funso Richard, an information security expert with a background in psychology. 'But if they aren't adaptive, clinically grounded and offer context-aware support, they risk leaving users worse off — especially in moments of real vulnerability.' Even when AI platforms show promise, Richard cautioned that outcomes remain elusive, noting that AI's perceived authority could mislead vulnerable users into trusting flawed advice, especially when platforms aren't transparent about their limitations or aren't overseen by licensed professionals. Wang echoed these concerns, citing a recent Journal of Medical Internet Research study that pointed out limitations in the scope and safety features of AI-powered mental health tools. The regulatory landscape is also catching up. In early 2025, the European Union's AI Act classified mental health-related AI as 'high risk,' requiring stringent transparency and safety measures. While the U.S. has yet to implement equivalent guardrails, legal experts warn that liability questions are inevitable if systems offer therapeutic guidance without clinical validation. For companies rolling out AI mental health benefits as part of diversity, equity, inclusion (DEI) and retention strategies, the stakes are high. No If tools don't drive outcomes, they risk becoming optics-driven solutions that fail to support real well-being. However, it's not all gloom and doom. Used thoughtfully, AI tools can help free up clinicians to focus on deeper, more complex care by handling structured, day-to-day support — a hybrid model that many in the field see as both scalable and safe. What To Ask Before Buying Into The Hype For business leaders, the allure of AI-powered mental health tools is clear: lower costs, instant availability and a sleek, data-friendly interface. But adopting these tools without a clear framework for evaluating their impact can backfire. So what should companies be asking? Before deploying these tools, Wang explained, companies should interrogate the evidence behind them. 'Are they built on validated frameworks like cognitive behavioral therapy (CBT) or acceptance and commitment therapy (ACT), or are they simply rebranding wellness trends with an AI veneer?,' she questioned. 'Do the platforms measure success based on actual outcomes — like symptom reduction or long-term behavior change — or just logins? And perhaps most critically, how do these systems protect privacy, escalate crisis scenarios and adapt across different cultures, languages, and neurodiverse communities?' Richard agreed, adding that 'there's a fine line between offering supportive tools and creating false assurances. If the system doesn't know when to escalate — or assumes cultural universality — it's not just ineffective. It's dangerous.' Wang also emphasized that engagement shouldn't be the metric of success. 'The goal isn't constant use,' she said. 'It's building resilience strong enough that people can eventually stand on their own.' She added that the true economics of AI in mental health don't come from engagement stats. Rather, she said, the show up later — in the price we pay for shallow interactions, missed signals and tools that mimic care without ever delivering it. The Bottom Line Back in that quiet moment when Caswell consulted ChatGPT during a panic attack, the AI didn't falter. It guided her through that moment like a human therapist would. However, it also didn't diagnose, treat, or follow up. It helped someone get through the night — and that matters. But as these tools become part of the infrastructure of care, the bar has to be higher. As Caswell noted, 'although AI can be used by therapists to seek out diagnostic or therapeutic suggestions for their patients, providers must be mindful of not revealing protected health information due to HIPAA requirements.' That's especially because scaling empathy isn't just a UX challenge. It's a test of whether AI can truly understand — not just mimic — the emotional complexity of being human. For companies investing in the future of well-being, the question isn't just whether AI can soothe a moment of crisis, but whether it can do so responsibly, repeatedly and at scale. 'That's where the next wave of mental health innovation will be judged,' Wang said. 'Not on simulations of empathy, but on real and measurable human outcomes.'

Wireless Antenna Market Size to Reach USD 7.04 Billion by 2031, Growing at 6.2% CAGR
Wireless Antenna Market Size to Reach USD 7.04 Billion by 2031, Growing at 6.2% CAGR

Yahoo

time17-06-2025

  • Business
  • Yahoo

Wireless Antenna Market Size to Reach USD 7.04 Billion by 2031, Growing at 6.2% CAGR

NEW YORK, June 17, 2025 /PRNewswire/ -- According to a new comprehensive report from The Insight Partners, the global wireless antenna market is observing significant growth owing to the rapid proliferation of IoT devices and growth of 5G technology worldwide. The report runs an in-depth analysis of market trends, key players, and future opportunities. To explore the valuable insights in the Wireless Antenna Market report, you can easily download a sample PDF of the report – Overview of Report Findings Market Growth: The wireless antenna market size was valued at US$ 4.64 billion in 2024 and is expected to reach US$ 7.04 billion by 2031; it is estimated to register a CAGR of 6.2% during 2025–2031. According to Rock Health, Inc.'s Digital Health Consumer Adoption Survey conducted on March 2024, in 2023, 44% of Americans own wearable health tracking devices, including smartwatches or smart rings, to monitor health parameters such as sleep and heart rate patterns. Smartwatches, fitness trackers, and medical monitoring devices rely on wireless connectivity. These devices necessitate small antennas that can function effectively regardless of space limits and body interference, encouraging market players to develop small wireless antennae to meet their customers' demands. Development of Next-Generation Wi-Fi Technologies: With the expansion of accessible bandwidth into the 6 GHz band with Wi-Fi 6E and beyond, accurately pitched antenna design becomes important for supporting greater frequency ranges. Manufacturers and network providers are investing in innovative antenna designs to address the technical needs of next-generation Wi-Fi while ensuring energy efficiency, scalability, and cost-effectiveness for mass-market deployment. In June 2023, Pulse Electronics, a YAGEO company, launched WiFi-6E Radome Omni Antenna, RO2471NM. It delivers enhanced signal strength and an improved coverage range for high-interference environments. The RO2471NM antenna leverages the full capabilities of WiFi-6E technology, which leads to lightning-fast connections and superior bandwidth. With its broad coverage (2400-7125 MHz), it provides improved performance even in congested and high-interference conditions. Increasing Research and Development (R&D) Activities: Manufacturers are investing in research and development to develop miniature antennae that are durable, cost-effective, and support upcoming wireless standards. For example, in December 2024, MIT researchers have now developed a biosensing technique that eliminates the need for wires. Instead, tiny, wireless antennas use light to detect minute electrical signals. This continual focus on the miniaturization of wireless antenna supports market players to meet consumer demand for small devices and improves system integration capabilities across other industries. Geographical Insights: In 2024, Asia Pacific led the market with a substantial revenue share, followed by North America and Europe. Market Segmentation Based on product type, the market is segmented into omni directional antenna, semi directional antenna, and highly directional antenna. The omni directional antenna segment dominated the market in 2024. By omni directional antenna, the wireless antenna market is divided into monopole antenna, dipole antenna, helical antenna, and others. The monopole antenna segment dominated the market in 2024. By semi directional antenna, the wireless antenna market is divided into patch, panel, sector, and others. The patch antenna segment dominated the market in 2024. By highly directional antenna, the wireless antenna market is divided into parabolic dish, grid antenna, Yagi-Uda antenna, and others. The parabolic dish segment dominated the market in 2024. Based on technology, the market is segmented into 5G, 4G/LTE, Wi-Fi, Bluetooth, GPS/GNSS, and others. The 5G segment dominated the market in 2024. Based on industry, the wireless antenna market is segmented into telecommunications, consumer electronics, mining, aerospace and defense, industrial, automotive and transportation, and others. The e-commerce segment dominated the market in 2024. For Detailed Wireless Antenna Market Insights, Visit: Competitive Strategy and Development Key Players: Panorama Antennas Ltd.; Sinclair Technologies Inc; Airgain, Inc.; Cisco Systems Inc; Ezurio; Huawei Technologies Co Ltd; PCTEL Inc.; 2J Antennas S.R.O.; Parsec Technologies; Quectel Wireless Solutions Co Ltd; Johanson Technology Incorporated; TE Connectivity Ltd; Pulse Electronics; Taoglas; Hubbell Inc; Mobile Mark, Inc; and Galtronics USA, Inc. are among the key players profiled in the wireless antenna market report. Trending Topics: warehouse automation, robotics, logistics automation, Industry 4.0, among others Stay Updated on The Latest Wireless Antenna Market Trends: Global Headlines "Quectel Wireless Solutions, a global IoT solutions provider, is pleased to announce its participation in the CommunicAsia event held in Singapore, where it will showcase its comprehensive portfolio of IoT products and services designed to help customers build a smarter, more connected world. Quectel highlights advanced IoT modules, antennae, GNSS, and 5G solutions at CommunicAsia Singapore." " Panorama Antennas is excited to announce the release of a range of IP68 Certified Antenna Solutions for the Water Industry. LPBSC-6-60-[X] is an omni-directional broadband antenna range covering 617-960/1427-6000MHz which has been specially adapted for use in hostile, frequently flooded environments for applications like sewer monitoring and water metering." "TE Connectivity plc, a world leader in connectors and sensors, completed the previously announced acquisition of Richards Manufacturing Co. TE Connectivity today completed its acquisition of Richards Manufacturing. Richards is a North American leader in utility grid products, including underground distribution equipment. The acquisition will enable TE to capitalize on the region's grid replacement and upgrade cycle, strengthening its leadership in serving utilities and other energy customers around the world.'' Purchase Premium Copy of Global Wireless Antenna Market Size and Growth Report (2021-2031) at: Conclusion The market for wireless antenna is primarily fueled by the rapid proliferation of IoT devices, growing adoption of 5G technology, and surging product development by manufacturers. Technological advancements, development of next-generation Wi-Fi technologies, and the growing focus on high-performance solutions are expected to provide lucrative opportunities for the wireless antenna market growth. The miniaturization of wireless antenna is likely to be a key trend in the wireless antenna market. The report from The Insight Partners, therefore, provides several stakeholders—including raw material providers, data center equipment manufacturers, distributors/suppliers/system integrators, and end users —with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities. Trending Related Reports: About Us: The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials. Contact Us: If you have any queries about this report or if you would like further information, please contact us: Contact Person: Ankit MathurE-mail: +1-646-491-9876Home - Logo - View original content to download multimedia: SOURCE The Insight Partners Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Late-stage digital health funding rebounds in Q1: Rock Health
Late-stage digital health funding rebounds in Q1: Rock Health

Yahoo

time10-04-2025

  • Business
  • Yahoo

Late-stage digital health funding rebounds in Q1: Rock Health

This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Venture capital funding for digital health startups increased in the first quarter as the sector notched some large investment rounds among more established companies, according to a report by venture capital firm and consultancy Rock Health. Digital health companies raised more cash across a similar deal count in the first quarter, increasing the average deal size to $24.4 million compared with $15.5 million in the fourth quarter last year. The first quarter often beats the previous period when it comes to funding totals, but the increase also demonstrates the return of late-stage investment, Rock Health said. The quarter's median deal size for Series D rounds and later was $105 million — the first time the metric has risen above $100 million since 2021. The digital health sector saw investment skyrocket to record-breaking levels in 2021, but funding fell back to earth the following year — leaving startups to juggle fewer funding opportunities and often inflated valuations inked during the pandemic-era investment boom. Funding held relatively steady in 2023 and 2024. Last year, digital health investment nearly matched the amount raised in 2019, adjusted for inflation. Total venture funding for U.S. digital health startups, 2019 - Q1 2025 Now, the funding landscape is characterized by a 'David and Goliath' dynamic: Small, early stage startups boost the number of deals, while the biggest funding rounds are notched by more established firms or companies prioritized by major investors, according to Rock Health. Overall, digital health startups raised $3 billion across 122 deals in the first quarter, compared to $1.8 billion in 118 deals in the fourth quarter. Earlier stage raises, including seed, Series A and Series B rounds, made up more than 80% of those labeled deals. The quarter also included five Series D raises, including three mega-deals, or rounds worth $100 million or more. Those large fundraises boosted the quarter's median Series D, or later size, to $105 million, nearly double the $55 million median deal size seen last year. The return of larger late-stage rounds comes as healthcare — and financial markets in general — face growing uncertainty as President Donald Trump takes the helm for his second term. Digital health startups will need to 'leapfrog,' or use shifts in the market to find ways to improve their position, according to Rock Health. One method is through mergers and acquisitions — especially strategic purchases used to add new features and capabilities. The report found 67% of the M&A in the first quarter involved a digital health startup buying another startup, compared with 53% across 2024. That kind of dealmaking tends to increase when acquisition targets are cheap and buyers have more cash on hand, according to Rock Health. 'That dynamic persists today: some digital health companies are still navigating the fundraising fallout from the peaks of 2020-2021, making them prime acquisition targets, while others have managed their balance sheets or raised enough capital to 'buy' assets rather than build internally,' the report authors wrote. Another method is through modular technology stacks, which allow companies to more easily switch out components in their infrastructure — key in the fast-moving artificial intelligence space, according to the report. Meanwhile, some companies are working together in partner networks. For example, Amazon's Benefits Connector aims to help users enroll in digital health programs covered by their health plans or employers. Larger companies can also engage more directly with startups that could be angling to disrupt their business models, like Eli Lilly working with telehealth company Ro to offer the weight loss drug Zepbound. 'Instead of viewing innovators as outright competitors, these engagements position larger enterprises as partners, investors, or future acquirers of potential rivals,' the report's authors wrote. Recommended Reading Digital health funding falls again in 2024: Rock Health Sign in to access your portfolio

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