Digital Health Investing

Digital health is the category where a pitch is easiest to make sound impressive and hardest to verify. "AI-powered" and similar language describes almost nothing about whether a product actually improves an outcome or a workflow — that has to be established separately, with real evidence.

A useful starting question is what the tool actually demonstrates, on what data, validated how — not what category it is marketed under. The strongest digital health companies can explain, in plain terms and without leaning on the AI framing to do the explaining, exactly what changes for the clinician or patient who uses their product.

The other question worth asking early is regulatory posture: is this a regulated medical device, clinical decision support software, or general wellness software, and has the company actually thought that through, or is it operating in an ambiguous space and hoping it stays that way. That answer changes the evidence bar, the sales cycle, and the risk profile substantially.