At Fierce Healthcare, we keep track of all the venture capital being funneled into the health tech and digital health industries.
Our fundraising tracker provides updated coverage of noteworthy digital health and health tech funding rounds, though we'll still profile exciting new companies and larger rounds that catch our eye in depth.
Do you have fundraising news to share? Email Senior Editor Heather Landi at [email protected].
Previous fundraising tracker updates can be found here and here. For news about funding deals from 2023, check out our 2023 Fundraising Tracker.
Frontera Health, AI-enabled autism care company, raised $32M
Frontera Health, an AI-enabled autism care company, launched in mid-February with $32 million in seed funding.
The funding was co-led by Lux Capital and Lightspeed Venture Partners, with Bison Ventures, Menlo Ventures, and Inspired Capital participating. Frontera's solutions are specifically designed to enhance the efficiency of clinicians and Board-Certified Behavior Analysts so they can overcome administrative barriers that limit access to care. As a result, clinicians can see more children, reduce tedious tasks and paperwork, and facilitate faster turnaround time to diagnoses and care, according to the company.
The Denver-based company uses what it calls “digital phenotyping” to metric metrics and analyze therapeutic sessions to generate comprehensive and unbiased assessments.
Frontera plans to commercialize its diagnoses and assessment solutions.
The company also plans to open its first Innovation Center, an ABA clinic offering diagnostic and therapeutic services.
"As a parent of a son with autism, I saw firsthand how challenging the system is for clinicians," said Amol Deshpande, CEO and Co-Founder of Frontera. "Faster diagnoses and accelerated care lead directly to better outcomes later in life. We're proud to work with BCBAs to empower them to bring quality care to more communities, especially rural and underserved communities that have historically been overlooked."
Sequoia Capital backs Freed's $30M round to scale up AI scribe
Freed is a fast-growing player in the AI clinician assistant market and picked up $30 million in series A funding. The startup is using artificial intelligence to reduce the burdens of medical documentation for clinicians.
Sequoia Capital led the round with participation from Scale Venture Partners, Daniel Gross, Gokul Rajaram, and Ted Zagat. This brings Freed’s total funding to $34 million.
Clinicians spend about 19 hours per week on paperwork and administration.
As a result, the U.S. healthcare system is facing a crisis of clinician burnout, with 50% of physicians reporting symptoms of burnout, and one-third of primary and acute care providers considering leaving the profession altogether. In fact, according to a recent report by the AAMC, the U.S. is set to face a shortage of 86,000 physicians by 2036.
Erez Druk, Freed’s co-founder and CEO, a former Meta engineer, said he was motivated to build the technology after watching his wife, who is a family physician, spend nights and weekends finalizing patient notes. Druk teamed up with another former Meta engineer, Andrey Bannikov, to start Freed.
Freed uses AI to automate documentation and reduce administrative friction. Freed’s AI scribe product, which automates the notetaking process, saves clinicians about 2 hours per day. Since its launch in 2023, the company says it has saved clinicians over 2.5 million cumulative hours.
The company says it has expanded its user base to more than 17,000 paying customers across 96 specialties. Freed attributes its rapid adoption to its direct-to-clinician business model which drives widespread implementation. The company also reports strong financial performance with a fourfold increase in year-over-year revenue. After growing primarily with individual and small practices, the company is now seeing increasing demand from larger enterprises and group practices.
Freed also unveiled new AI-powered and other advanced features that extend its capabilities beyond note writing. These features include specialty-specific notes, custom template builder, pre-charting adn EHR integration via a browser extension.
Motivity snags $27M to expand R&D, advance AI tech
Motivity provides clinical software solutions for behavioral health providers, offering an advanced platform for Applied Behavior Analysis (ABA) providers who treat children with autism. The company picked up a $27 million investment from Five Elms Capital, a leading software investment firm.
Motivity plan to use the fresh capital to accelerate product innovation, expand its team and strengthen support for ABA providers.
To date, the company has secured $11 million in Small Business Innovative Research (SBIR) grants used to develop solutions, including AI-driven workflows, analytics for clinical decision support, and caregiver engagement tools. Motivity serves over 550 organizations across seven countries.
Motivity will expand its research and development efforts, focusing on AI-driven insights, advanced clinical decision-support tools, and solutions to strengthen caregiver engagement. Additionally, the company will enhance its enterprise capabilities to meet the evolving needs of larger ABA organizations.
The company's solutions are designed to streamline data collection, analysis, and reporting, enabling therapists to focus on improving the lives of individuals with autism and other developmental challenges.
"This investment isn’t just about scaling; it’s about pushing the boundaries of what’s possible in ABA technology,” said Rex Jakobovits, founder of Motivity, in a statement. “Our focus remains the same: delivering intuitive, intelligent solutions that help providers focus on what matters most - improving the lives of children with autism and their families."
"With Five Elms' partnership, we can accelerate our capacity to innovate and expand our impact," Jakobovits said.
Healthcare infrastructure company raises $18M
Startup Junction secured $18 million in series A funding to scale it platform, grow its team and expand its API network to help healthcare organizations. The series A was led by Creandum, with participation from Y Combinator, Point Nine, Amino Collective and Inflect Health.
As more care moves out of the hospital, the healthcare industry needs modern infrastructure to enable connections between fragmented systems.
Junction provides modern infrastructure for healthcare organizations, making patient data accessible, actionable, and automated across lab testing and device integrations. In the past year, the startup says it expanded its wearable and lab integrations to serve more than 140 healthcare organizations, including digital health leaders like Found, Parsley Health and Evidation. Across these organizations and others, Junction supported more than 500,000 lab tests annually and over 2 million connected devices.
Junction enables seamless lab ordering across all 50 states, with results from major laboratories like LabCorp and Quest), via both in-person or at-home testing. Its technology reduces manual work for clinical teams, keeping patient data flowing without admin burden. Patients can receive status updates and reminders, improving adherence, the company said.
The platform integrated with more than 500 wearables and medical devices, integrated via a single API to create a longitudinal view of patient health.
Junction has secured $18 million in Series A funding led by Creandum, with participation from Y Combinator and other investors. The healthcare infrastructure company is addressing critical industry challenges by creating seamless connections between fragmented systems, enabling more efficient lab ordering and device integration for over 140 healthcare organizations.
Gem Health nabs $7M to expand virtual sleep services
A virtual specialty clinic for sleep care, Gem Health raised $7 million series a funding co-led by HealthTrend Capital and LFE Capital, with participation from Base10 Partners and Mairs & Power Venture Capital
The startup plans to expand its virtual sleep services and further develop solutions for patients. The company's first offering, Gem Sleep, removes the barriers to treating sleep conditions including obstructive sleep apnea. The solution virtually performs clinical evaluation, diagnosis, treatment set up and support. This approach speeds up patient’ access to care—in days, rather than weeks or months—while lowering costs for patients and insurers, according to the company.
Gem Health’s Sleep solution is available in 50 states and is in-network with 53 million Americans' health plans ensuring broad access to care.
The series A round will support Gem Health’s expansion into new markets and conditions.
We are thrilled to continue leading the charge in virtual sleep care and are committed to expanding access to life-changing treatment for sleep apnea,” Brian Sauer, Founder and CEO of Gem Health, said in a statement. "In addition to improved quality of life, our innovative approach saved patients and insurance providers nearly $15M in healthcare costs in 2024. With the support of our investors, we can accelerate the development of innovative solutions that simplify and personalize the sleep care experience, ensuring more people get the care they need, faster. This investment allows us to scale and deepen our impact on the lives of millions who struggle with sleep health."