While the digital health sector might feel a little cramped in some areas, there are wide open spaces in others — and investors are ready to funnel money into companies looking to innovate these lesser-discussed aspects of care delivery and healthcare technology. Some of these areas include Medicaid, generative AI and patient-to-patient support.

Going into 2023, investors think the abilities to demonstrate ROI and clinical validation will be the most important factors determining digital health companies’ success, according to a new report. While the ROI factor is a given, clinical validation “is the best signal of patient value and historically has been under-captured in digital health,” said Sunny Kumar, a partner at GSR Ventures.

Check out new developments from Medvantx, Medisafe, Medical Informatics Corp., Journey Biosciences, and GSR Ventures.

During Q3, digital health’s funding fell 36% quarter-over-quarter and 72% from its all-time high during last year’s Q2. The primary driver of this reduction is macro market trends, experts said, though digital health companies need to tie their services more directly to value to get funding in the future.

The MedCity INVEST conference at the Ritz Carlton Hotel in Chicago March 28-30 highlights startups poised to play a key role in healthcare transformation, as part of the Pitch Perfect contest. Read more about the companies taking part and the judges evaluating them.

Osso VR, which uses VR modules to prepare surgeons for hands-on training and demo medical devices, raised $27 million in funding. 

The Covid-19 pandemic is altering behavior and fueling demand for remote technologies in clinical trials with Medable, a company in the clinical trial software space, looking to capitalize.

Among the new services Kinsa will provide through its app are real-time answers to questions users have when either they or their child is sick.