Private Investors Inflate Digital Health Company Valuations

Matthew Holt reports that private investors are funding digital health startups at sky-high valuations despite public market skepticism, citing Garner's $118 million raise at a $1.35 billion valuation and Talkiatry's $210 million round. He argues many AI-powered revenue-cycle management and mental-health firms lack proven paths to profitability, warning this valuation disconnect could prompt down rounds or shutdowns.