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Healthtech — a healthy industry for VC investment in the market downturn
The COVID-19 pandemic opened the eyes of the entire world to how truly vulnerable we are to health-related threats. In addition to the expected effect on public health, COVID-19 created massive ripples in logistics, tourism, trading, public events, air travel, and many other industries, causing a market crash.
With indexes falling, and even the FAMGA down, the investment community has split into two opposing camps: The “We are doomed, let’s slow down all investments” camp and the “Every crisis brings an opportunity” camp.
As an investment advisory firm, serving both investors and startups, it is our job to look for opportunities and implement effective strategies for successful capital allocation. There are several industries that we believe will thrive in the coming years and are worth paying close attention to, one of them is healthtech.
Three positive indicators are driving our strategy around healthtech investment:
1) Market timing for healthcare disruption.
In light of a possible recession, the consumer dollar will go into essential necessities. Healthcare has proven to be a nearly bulletproof sector with rising salaries and increased employment rates from 2000–2008.
