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At a challenging time for digital health startups, Define Ventures announced on Tuesday it has raised $460 million to invest in these early-stage companies.

The last time Define Ventures managing partner Lynne Chou O’Keefe announced she’d raised a fund, in January 2021, things were different. A perfect storm of the pandemic, hype, and available money created a frenzy of investment, boosting funding for digital health companies to a record $29 billion by year-end. But that number fell by nearly half last year, and 2023 is off to an ominously slow start.


Chou O’Keefe calls the difference between then and now “a tale of two cities.” In 2021, when just about anyone could get funding, ambitions were big and scrutiny was light. That won’t fly in 2023.

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