What You Should KnowThe latest CB Insights report, Q2 2026 State of Digital Health reveals global digital health deal activity reached a decade-low of 228 deals in Q2 2026, marking a 36% decline quarter-over-quarter and a two-thirds drop from the Q2 2022 peak of 688 deals. M&A exit volume continued its post-Q3 2025 slide to 47 deals in Q2 2026, though billion-dollar transactions occurred, including Celerion ($1.8B) and Eucalyptus ($1.2B). Exits and M&A Contraction: Mergers and acquisitions continued to cool from their Q3 2025 high of 68 exits down to 47 in Q2 2026. The concentration of 37% of all quarterly funding into Isomorphic Labs proves that investors prefer high-conviction, asset-generating AI bets over broad digital health point-solution portfolios. Furthermore, as early-stage median deal sizes rise to $4.8 million alongside declining deal volumes, young startups face a far stricter institutional bar.