Venture capital has been hard to come by in 2023, but that hasn't stopped a handful of digital health startups from securing massive amounts of cash.

According to Rock Health, "Q1 2023 U.S. digital health funding closed with $3.4 billion across 132 deals, with an average deal size of $25.9 million."

Despite the fact 2023 is on pace for the lowest level of funding since 2019, the first quarter still shows an uptick in activity when compared to the fourth quarter of 2022 when it reached $2.7 billion and the third quarter of 2022 when it was $2.2 billion. That's good news for founders in the healthcare space.

The Biggest Winners Of Q1 2023

Although the average deal size was "only" $25.9 million in the first quarter, there were a handful of mega deals that checked in at more than $100 million. These include:

Monogram Health, $375 million: Monogram Health provides evidence-based, in-home care for patients with polychronic conditions such as chronic kidney and end-stage renal disease.

ShiftKey, $300 million: ShiftKey is an online platform that provides real-time access to PRN shifts, allowing various types of healthcare professionals to build their own schedules.

Paradigm, $203 million: Paradigm's tagline is, "Clinical research, built better for all." The company believes that today's clinical research is inequitable, fragmented, inefficient and costly. Its goal is simple: to create equitable access to the best possible care for any patient anywhere.

ShiftMed, $200 million: ShiftMed is an all-in-one healthcare labor solution, integrating in-house personnel administration technology with a readily available labor market platform. It enables institutions to effectively oversee in-house assets while augmenting staff with external personnel when needed.

Gravie, $179 million: Gravie is a "modern" health benefits company, with the goal to provide a health plan that members love. It starts with providing 100% comprehensive coverage for the most common healthcare services, without delay.

Vytalize Health, $100 million: Specializing in Medicare value-based care programs, Vytalize Health provides an all-in-one solution for primary care practices.

These six mega deals accounted for roughly 40% of the first quarter's total digital health funding.

The current VC healthcare market is being driven in large part by a handful of large transactions, but there were still 100-plus companies that secured less than $100 million in financing in the first quarter. As 2023 wears on, keep a close eye on how the following quarters stack up.