In the evolving landscape of healthcare technology, several startups are gearing up to make significant acquisitions in 2025. Despite a slowdown in large corporate mergers and acquisitions (M&A) within the healthcare sector, these startups are capitalizing on their financial strength and strategic vision to expand through M&A activities. This article explores seven prominent healthcare startups that are well-positioned to drive transformative deals this year, highlighting their recent funding rounds and acquisition strategies.
The digital health industry has seen a surge in startups looking for opportunities to consolidate and grow. With fewer large corporations showing interest in major acquisitions, smaller companies with ample cash reserves are stepping into the spotlight. These startups are leveraging their resources to acquire innovative technologies and expand their market presence. Among the notable players ready to make waves in 2025 are Caresyntax, Commure, Datavant, Hinge Health, Innovaccer, Fabric, and Transcarent.
Caresyntax, founded in 2013, secured $180 million in August 2024 and is now eyeing acquisitions in surgical AI applications, video analytics, and data capture modules. The company aims to enhance its offerings by integrating advanced technologies from smaller ventures. Meanwhile, Commure, established in 2017, has already made seven acquisitions, including the care coordination platform Memora Health in December 2023. The company's leadership emphasizes that M&A is integral to its growth strategy.
Datavant, another key player in the health data management space, plans to make one or two more acquisitions in early 2025. Since its inception in 2017, the company has completed 11 acquisitions, most recently acquiring Trace Data and two data analytics products from Apixio in September 2024. CEO Kyle Armbrester stated that Datavant is targeting companies that can enhance its network with artificial intelligence and analytics solutions.
Hinge Health, a physical therapy startup, is preparing for a potential IPO while also exploring acquisition opportunities. Founded in 2014, the company raised $400 million in Series E funding in October 2021. CEO Daniel Perez indicated that Hinge Health is actively seeking smaller companies to bolster its service offerings before its public market debut.
Innovaccer, which received $275 million in Series F funding at the start of 2025, has already acquired Humbi AI, an actuarial analytics startup. The company plans to continue its acquisition spree to enhance patient experiences and reduce administrative burdens for healthcare providers. CEO Abhinav Shashank highlighted the importance of partnering with mission-driven companies to accelerate Innovaccer’s roadmap.
Fabric, an early-stage startup launched in 2021, has centered its strategy around M&A since its inception. The company has made four acquisitions in just 15 months, including TeamHealth’s virtual care business in September 2024. Founder and CEO Aniq Rahman noted that Fabric is exploring larger acquisition targets and expects to ramp up its M&A efforts further in 2025.
Transcarent, founded in 2020, began the year with a significant $621 million acquisition of Accolade, a care navigation company. CEO Glen Tullman emphasized the importance of successfully integrating Accolade while remaining open to other strategic opportunities. Backed by General Catalyst and 7wireVentures, Transcarent has a history of making impactful acquisitions to drive innovation and growth.
As these healthcare startups prepare for a busy year of acquisitions, they are set to reshape the digital health landscape. By strategically acquiring complementary businesses, they aim to enhance their capabilities, expand their reach, and ultimately deliver better healthcare solutions. The coming months will likely witness a flurry of activity as these companies pursue new opportunities for growth and innovation.