Digital Health Funding Weekly Recap May 2026

Over $100M deployed in a single week across GI diagnostics, lung care, and revenue cycle AI — the deals that matter and why

Healthcare AI just pulled in $100M+ this week. Here is who got funded and what it means.

The pace of healthcare AI investment in May 2026 shows no signs of slowing. A single week produced three significant deals that collectively signal where the smart money is moving in clinical AI, and what health system and FQHC leaders should be paying attention to.

📊 The headline deal was Iterative Health's $77 million Series C for AI-powered GI diagnostics, led by Google Ventures. Iterative's platform improves adenoma detection rates in colonoscopy — the primary quality metric for colorectal cancer screening — and has built a clinical trial network on top of its diagnostic AI infrastructure that pharmaceutical companies pay to access. The GV lead is significant: it signals that the major technology platforms are treating clinical AI as a strategic category, not just a financial bet.

Lungpacer Medical closed a $12 million round for its diaphragm pacing technology targeting ventilator weaning in ICU…