Australia’s digital health commercialisation engine ANDHealth has awarded $9 million in funding to five startups, even as new data reveals a widening capital gap threatening the nation’s fast‑growing $45 billion digital health industry.
According to the organisation’s FY2026 Industry Sentiment Survey, 92% of digital and connected health SMEs plan to raise growth capital in the next year, while 90% aim to expand internationally. Despite this surge in demand, 86% of companies cited “access to capital” as a top challenge, with over half ranking it as their single biggest barrier.
The latest ANDHealth+ program saw its most competitive round yet, with 90 startups vying for support. Funding was awarded to Australis Scientific (NSW), Corcillum (SA), Earflo (WA), Kraken Coding (NSW/NT), and More Good Days (VIC).
Digital health remains one of Australia’s fastest‑growing technology segments, expanding at a 55% compound annual growth rate since 2018 and doubling in size over the past three years. Globally, the sector is projected to reach US$946 billion by 2030.
Despite this momentum, many companies are being forced into defensive strategies, including layoffs and paused expansion plans, due to limited capital availability. Industry leaders are calling for dedicated investment funds, procurement reforms, and a fit‑for‑purpose reimbursement framework to ensure local innovation can scale and reach patients.
Leadership diversity is improving, with 60% of companies reporting female founders and 39% female CEOs. However, women‑led firms remain smaller and face greater challenges in raising capital compared to their male‑led peers.
ANDHealth CEO Bronwyn Le Grice warned that the funding bottleneck is not just a startup issue but a broader health system challenge, as digital health technologies can expand access to care, reduce hospital pressure, and improve outcomes for rural and regional patients.
