What Growth Equity Investors Look for in Digital Health

In many regards, 2025 was the year of megarounds ($100M+ raises) in digital health. As Rock Health reported, 42%, nearly half, of the 14.2 billion dollars of venture funding raised in 2025 went to megarounds–the highest proportion since 2021. Building a venture-backed digital healthcare company has always been challenging–but in an increasingly bifurcated investing environment, where fewer companies are capturing larger checks, understanding what mid-stage to late-stage growth investors are looking for has never been more important for founders (and joiners who want to work at companies that will last) to understand. At the same time, we have found a gap in coverage of growth equity investors in digital health. Maybe this is because “growth equity” itself can be a bit opaque. 

In truth, growth equity is not so much a specific funding round or size so much as a company’s stage in its growth trajectory; growth equity investors operate very much on a spectrum. Growth checks can be as small as $20M up to over $100M-$150M. In digital health in particular, as exit opportunities in public markets have been mixed, growth equity investors have increasingly included a broader spectrum of investing, like cross-over or pre-IPO investing rounds. In a broad sense, growth equity investors can take majority or minority positions, and investment strategies can resemble early-stage venture investing or more traditional PE (i.e., middle-market buyout strategies)

One thing is certain: growth equity investors are looking for companies that can scale. In digital health, this generally means proven, measurable outcomes and sustainable unit economics; companies that are post product-market-fit and are using capital to accelerate distribution. 

We surveyed investors from 10 leading growth equity funds in digital health to see what they look for in companies and in founders so that companies being built today have visibility in what will be asked of them tomorrow. For our purposes, we pursued a more narrow definition of growth equity. We screened for investors who could write a minimum $20 million check and who provide growth capital as opposed to a more traditional PE/buyout strategy. 

We are very grateful to the investment teams who participated and shared their thoughts. If you are a digital health founder, are there other questions you wish you could have answered? If you are an investor, what are we missing? Feel free to reach out and to start the conversation. 

We ordered the list alphabetically in terms of stage–from those who are “pure-play” growth equity investors to those that invest in both early- and later-stage rounds.

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