Digital Health

The funding will also go toward attracting leadership talent and accelerating product development, marketing and sales.

The digital mental health unicorn confirmed it received a grand jury subpoena from the U.S. Attorney's Office for the Eastern District of New York on the evening of May 4.

The clearance represents what could be the world's first regulatory approval of a DTx app for hypertension treatment.

Also: Butterfly Network reports a year-over-year revenue increase of more than 25%, with a $44.5 million net loss, and One Medical announces a significant jump in revenue.

The size of the healthcare industry is attractive to entrepreneurs, but the highly regulated field can be a challenge for startups.

Under the deal, MedRhythms would receive a $3 million upfront payment and could earn up to $117.5 million if certain milestones are met.

The company is looking to expand its coverage across China's Greater Bay Area.

The firm plans to expand its chronic disease treatments across more therapeutic areas.

Also: Pediatric behavioral health company Brightline partners with a youth health education nonprofit to develop teen programs, and digital fitness startup FitOn launches courses for seniors and people with chronic conditions.

The suspension comes as the digital mental health company faces increasing pressure over its prescription practices, particularly for ADHD medications.