Which digital therapeutics companies got funding?

This blog post has been written by the person who has mapped the digital therapeutics market in a clean and beautiful presentation

Digital therapeutics funding reached unprecedented heights in 2024-2025, with $19.72 billion raised across both years combined.

The sector attracted major pharmaceutical partnerships, strategic tech investments, and regulatory breakthrough designations that signal a maturing market ready for serious capital deployment. Companies like Click Therapeutics secured the largest single round at $48.5 million, while institutional backers like the European Investment Bank committed €35 million in venture debt to accelerate platform expansion.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

Who are the digital therapeutics startups that received funding in 2024 and 2025 so far?

Click Therapeutics dominated headlines with the largest single funding round, securing $48.5 million in Series C funding in March 2025.

Pear Therapeutics continued its funding momentum with a $64 million Series C round led by Temasek, focusing on prescription digital therapeutics for addiction treatment. The company previously raised $50 million in Series B funding with participation from EDBI and other institutional investors.

Sidekick Health from Iceland secured €42 million in combined venture debt and growth capital from the European Investment Bank, marking one of the largest non-dilutive funding rounds in the DTx space. CareLoop, a UK-based startup specializing in severe mental illness monitoring, raised £1.8 million in seed funding co-led by GMC Life Sciences Fund and Verge HealthTech Fund.

Minze Health from Belgium raised $5.3 million in Series A funding led by White Fund and Capricorn Digital Growth to develop prescription digital therapeutics for urology conditions. Other notable funded companies include Sword Health and Cohere Health, backed by General Catalyst, and Viz.ai, supported by Andreessen Horowitz.

Need a clear, elegant overview of a market? Browse our structured slide decks for a quick, visual deep dive.

How much total capital was raised across the digital therapeutics sector in 2024 and 2025 respectively?

The digital therapeutics sector raised $8.73 billion in venture capital during 2024, representing significant growth from previous years.

2025 projections indicate the sector will reach $10.99 billion in total funding based on year-to-date growth trends, representing a 25.9% compound annual growth rate. These figures reflect only venture capital investments and exclude strategic partnerships, licensing deals, and debt financing arrangements.

The combined two-year funding total of $19.72 billion demonstrates unprecedented capital flow into DTx companies, driven by regulatory breakthrough designations, FDA clearances, and reimbursement pathway developments. North America accounts for approximately 70% of global DTx funding, with the US market generating $4.5 billion in revenue in 2025.

Europe emerged as the fastest-growing region for DTx funding in 2024, supported by public-private partnerships including the European Investment Bank's venture debt facility and NHS adoption of NICE-recommended platforms.

If you want fresh and clear data on this market, you can download our latest market pitch deck here

Which individual digital therapeutics company received the largest funding round in this period?

Click Therapeutics secured the largest individual funding round with $48.5 million in Series C financing completed in March 2025.

The round featured strategic investments from Dassault Systèmes, alongside major pharmaceutical partnerships with Otsuka committing over $300 million for their Rejoyn depression platform and Boehringer Ingelheim investing $500+ million for schizophrenia digital therapeutics development. Both pharmaceutical partnerships include joint FDA Breakthrough Device designation status.

Click Therapeutics' funding round demonstrates the strategic value pharmaceutical companies place on validated digital therapeutics platforms with regulatory clearance pathways. The company's platform addresses behavioral health, chronic conditions, and neurological disorders through evidence-based interventions.

Previous funding history includes $17 million Series A led by Sanofi Ventures in 2018 and $52 million Series B co-led by H.I.G. BioHealth Partners and AccelMed Partners, establishing a strong foundation for the recent mega-round.

What are the names of the investors or venture capital firms backing these digital therapeutics companies?

Major institutional investors leading DTx funding include Temasek, Andreessen Horowitz, General Catalyst, and specialized healthcare funds like GMC Life Sciences Fund by Praetura.

Which specific startups did each of these investors back, and what do those startups specialize in?

Temasek's digital therapeutics portfolio focuses on prescription-grade platforms with FDA clearance pathways, leading Pear Therapeutics' Series B ($50 million) and Series C ($64 million) rounds for addiction treatment solutions.

Andreessen Horowitz backs AI-enabled disease management platforms including Viz.ai for stroke detection and Click Therapeutics for behavioral health interventions. Their investment thesis centers on technology platforms that integrate with existing healthcare workflows while demonstrating measurable clinical outcomes.

General Catalyst's portfolio includes Sword Health, which provides musculoskeletal care through AI-powered physical therapy platforms, and Cohere Health, specializing in prior authorization automation for healthcare providers. Both companies address healthcare delivery efficiency and cost reduction.

The European Investment Bank's €42 million commitment to Sidekick Health supports chronic disease coaching platforms using AI-driven behavioral interventions for diabetes, hypertension, and obesity management. GMC Life Sciences Fund co-led CareLoop's £1.8 million seed round for the first NICE-recommended digital therapeutics platform addressing severe mental illness monitoring.

Wondering who's shaping this fast-moving industry? Our slides map out the top players and challengers in seconds.

How much did each investor contribute in the funding rounds, and under what terms if disclosed?

Temasek led Pear Therapeutics' $50 million Series B in January 2018 and participated in the subsequent $64 million Series C round in 2019, though specific contribution amounts remain undisclosed.

The European Investment Bank provided the most transparent funding structure with €35 million in venture debt plus €7 million in growth capital to Sidekick Health under InvestEU program terms. This non-dilutive financing includes milestone-based disbursement tied to R&D achievements and global market expansion targets.

GMC Life Sciences Fund and Verge HealthTech Fund co-led CareLoop's £1.8 million seed round with equal participation, though exact individual contributions were not disclosed. White Fund led Minze Health's $5.3 million Series A with Capricorn Digital Growth and PMV as co-investors.

Most venture capital funding rounds maintain confidential term sheets, with disclosed information limited to total round size and lead investor identification. Strategic pharmaceutical partnerships like Otsuka's $300+ million commitment to Click Therapeutics represent licensing and development agreements rather than equity investments.

If you want to build or invest on this market, you can download our latest market pitch deck here

Are any major pharmaceutical, medtech, or tech giants investing in digital therapeutics companies, and if so, which ones?

Major pharmaceutical companies have made substantial strategic investments and partnerships in digital therapeutics, led by Otsuka's $300+ million commitment to Click Therapeutics for depression treatment platform Rejoyn.

Boehringer Ingelheim invested over $500 million in partnership with Click Therapeutics for schizophrenia digital therapeutics development, including joint FDA Breakthrough Device designation. Sanofi Ventures led Click Therapeutics' $17 million Series A round in 2018, demonstrating early pharmaceutical industry confidence in digital therapeutics platforms.

Technology giants entering the space include Dassault Systèmes with strategic investment in Click Therapeutics' $48.5 million Series C round. The European Investment Bank represents institutional backing for healthcare innovation through its €42 million commitment to Sidekick Health.

Healthcare systems and government agencies also provide strategic backing, with the NHS recommending CareLoop's platform through NICE approval, enabling public sector funding support. These partnerships indicate pharmaceutical and technology companies view digital therapeutics as complementary to traditional drug development rather than competitive threats.

What kinds of technologies, therapeutic areas, or R&D breakthroughs are being financed through these investments?

Behavioral health platforms dominate funding allocation, with cognitive behavioral therapy-based applications for major depressive disorder, anxiety, and addiction treatment receiving the largest investment rounds.

Chronic disease management platforms targeting diabetes, hypertension, and obesity represent the second-largest funding category, with AI-driven behavioral interventions and remote monitoring capabilities. Sidekick Health's €42 million funding specifically targets chronic disease coaching through machine learning algorithms that personalize intervention timing and content.

Neurological and cognitive disorder platforms attract significant pharmaceutical partnerships, including Click Therapeutics' schizophrenia monitoring system with Boehringer Ingelberg and psychosis prediction algorithms developed by CareLoop. Urology-focused prescription digital therapeutics, exemplified by Minze Health's home uroflowmetry platforms for lower urinary tract symptoms, represent emerging specialized applications.

R&D investments focus on sensor-integrated wearables, predictive analytics for treatment adherence, and AI-powered remote monitoring systems. Platform technologies that integrate with electronic health records and enable real-world evidence collection receive priority funding as healthcare systems demand interoperability and outcome measurement capabilities.

Looking for the latest market trends? We break them down in sharp, digestible presentations you can skim or share.

Which countries or regions are seeing the most funding activity for digital therapeutics startups?

North America dominates global digital therapeutics funding with approximately 70% market share, driven by the United States generating $4.5 billion in DTx revenue during 2025.

Europe emerged as the fastest-growing region for DTx funding in 2024, supported by public-private partnerships including the European Investment Bank's venture facilities and NHS adoption programs. The UK leads European activity with CareLoop becoming the first NICE-recommended digital therapeutics platform, followed by Belgium's Minze Health securing $5.3 million for US market expansion.

Iceland represents an unexpected DTx hub with Sidekick Health's €42 million funding round demonstrating Nordic innovation capabilities in chronic disease management. Germany's Digital Health Applications (DiGA) reimbursement framework continues attracting investment as companies seek regulatory approval pathways.

Asia-Pacific funding activity slowed in 2024 compared to previous years, though Singapore maintains presence through Temasek's continued DTx investments. Israel and South Korea show emerging DTx innovation clusters, particularly in mental health and chronic disease management applications.

If you need to-the-point data on this market, you can download our latest market pitch deck here

Are there any emerging players or lesser-known regions receiving significant funding in this market?

CareLoop from the UK represents the most significant emerging player, securing £1.8 million seed funding for severe mental illness digital therapeutics while becoming the first NICE-recommended DTx platform.

Belgium's Minze Health raised $5.3 million to develop prescription digital therapeutics for urology conditions, targeting US market expansion with home uroflowmetry technology for lower urinary tract symptoms and benign prostatic hyperplasia. Iceland's Sidekick Health secured €42 million in non-dilutive financing, demonstrating Nordic countries' growing DTx capabilities.

Lesser-known European regions gaining DTx investment include Belgium, Iceland, and smaller UK markets outside London. These regions benefit from supportive regulatory frameworks, government innovation programs, and access to European Investment Bank funding facilities.

Emerging therapeutic specializations receiving funding include urology-focused DTx, severe psychiatric condition monitoring, and AI-powered chronic disease coaching platforms. These specialized applications demonstrate market expansion beyond traditional mental health and diabetes management platforms toward condition-specific prescription digital therapeutics.

What does the funding activity suggest about trends and investor expectations for the digital therapeutics sector in 2026?

Investor expectations for 2026 center on evidence-based reimbursement models, with funding shifting toward FDA-cleared platforms demonstrating real-world clinical outcomes and healthcare cost reduction.

Platform consolidation through mergers and acquisitions will accelerate as pharmaceutical companies, private equity firms, and technology giants acquire validated DTx platforms. Strategic partnerships between DTx companies and health systems will drive adoption and outcomes data collection, fueling follow-on funding rounds.

Early-stage funding remains robust with increased average deal sizes conditional on validated clinical endpoints and regulatory pathway clarity. Investors prioritize companies with prescription-grade platforms over direct-to-consumer applications, reflecting healthcare system integration requirements.

Geographic expansion funding will target European markets with supportive reimbursement frameworks and US market penetration for international DTx companies. Real-world evidence partnerships with healthcare providers will become funding prerequisites as investors demand proof of clinical effectiveness and healthcare system integration capabilities.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

Are there any noticeable shifts in funding patterns compared to previous years, such as stage of funding, company maturity, or business model focus?

A significant shift toward later-stage funding rounds occurred in 2025 after a pullback in 2024, with renewed mega-rounds targeting established DTx platforms with proven clinical efficacy.

Investor sophistication increased dramatically, with greater focus on randomized controlled trial-backed efficacy, clear regulatory pathways, and integration capabilities with existing healthcare delivery systems. Business model evolution moved away from direct-to-consumer applications toward prescriber-driven, reimbursement-aligned platforms.

Company maturity requirements shifted upward, with investors prioritizing platforms demonstrating real-world evidence of clinical outcomes and healthcare cost reduction. Seed funding now requires validated clinical endpoints that previously were expected only at Series A or B stages.

Strategic equity and debt deals by pharmaceutical companies, private equity, and technology giants indicate platform consolidation trends. Non-dilutive financing options like the European Investment Bank's venture debt provide alternative funding structures for revenue-generating DTx companies seeking growth capital without equity dilution.

Conclusion

Sources

1. Global News Wire - Digital Therapeutics Industry Assessment 2025
2. BH Business - Click Therapeutics Raises $48.5M
3. MobiHealthNews - Pear Therapeutics $64M Series C
4. EDBI - Pear Therapeutics Series C Financing
5. European Investment Bank - Sidekick Health Venture Debt
6. Statista - Digital Therapeutics Market Outlook
7. Digital Health - CareLoop Funding Round
8. Minze Health - $5.3 Million Funding Announcement