Digital health funding and deals are expected to dip after reaching record heights last quarter. CBInsights shared its projections for the end of 2020, showing a slight decline in healthcare investing overall.

For the third quarter of 2020 healthcare investing passed record levels of $21.8 billion. The end of the year is expected to return to normal levels, with a projected $19.49 billion in funding. CBInsights also forecasted fewer early-stage deals and more late-stage deals.

The pandemic also shifted the spotlight on digital health companies, which raised a record of $8.4 billion last quarter, up more than 73% from the prior quarter. Going into the fourth quarter, digital health deals are expected to return to normal levels, with $5.54 billion in funding expected across 372 deals. As of Nov. 17, digital health companies had raised $2.89 billion across 194 deals.

CBInsights forecasts a slight decline in digital health funding for Q4. Photo credit: CBInsights

So far, there have been 30 reported healthcare “megadeals,” or rounds where companies raised more than $100 million. Most of them were for companies headquartered in the U.S. and China, with the U.S. seeing 16 megadeals and China seeing 11.

Here are some highlights:

Photo credit: TAW4, Getty Images