Since peaking in 2021, VC funding for HealthTech companies remained subdued through the first half of 2026, with deal volumes being steady. In the first half of 2026, the median VC funding round was $3.7 million. As the median disclosed M&A deal value was almost 8 times higher, many sellers have instead been drawn to M&A strategies as a more attractive path to growth and liquidity.

We tracked 322 transactions during this period, with a robust outlook for the rest of 2026. Private Equity accounted for about 34% of these deals, underscoring strong interest from both strategic and financial buyers as they pursue solutions that improve patient outcomes, support new treatments, and lower costs. 

Looking at deals by subsector, the Healthcare Ops space led the list with 143 transactions, representing 44% of the total, followed by Healthcare Data Management and Healthcare IT Services with 35 deals each which both represented 11% of total transaction volumes, respectively. The Electronic Healthcare Records subsector saw 26 transactions, equal to 8% of the total. 

During the first six months of 2026, total disclosed M&A deal values reached $24 billion, aided by three megadeals, well above the levels seen in the first half of 2025. Only 13% of transactions disclosed their financial terms as buyers continued to keep the details and strategies behind their acquisitions private. The median disclosed M&A transaction value was $33 million. 

During the first six months of 2026, US-based The Carlyle Group took the lead, announcing 3 deals in the HealthTech sector including one for a revenue cycle management company, followed by other Private Equity firms including Advent, BV Investment Partners, 3GP, and Arcadea Group which each made 2 deals. Strategics were also active in the space - DeepHealth, Maulin Group, Elsevier, RELX Group, Medisolv  and Function Health announcing 2 deals each. The healthcare focused arm of Constellation Software, Harris, scores 2 deals as well.