GroveStreet on Continued Strength in Healthcare Venture Fundraising

GroveStreet Managing Partner Frank Angella is quoted in the Wall Street Journal about the rise in healthcare venture fundraising in 2023 saying “LPs understand this is a long-cycle investment thesis and still believe the core drivers are intact.” As recent performance metrics are distorted with inconsistent valuation adjustments, there is more focus among LPs on the long-term promise of advances in biotechnology and digital health, including the application of AI and ML to ever-larger data sets to identify new treatments. Notwithstanding large reserves of dry powder, investments in early-stage startups are down as many GPs are holding out for mid-to-later-stage companies that had raised capital at lofty valuations. LPs should monitor these trends and their implications on valuations. On the ground, one thing is clear – entrepreneurs are having to do more with less, an operating environment that has historically led to strong returns. Read more here (for WSJ subscribers): https://www.wsj.com/articles/venture-fundraising-in-healthcare-rises-as-investment-in-startups-slows-67f3bd7c