Career choices. VC, PE, SPAC’s. Medtech & Healthtech dynamics
Perceived risks, timelines, and technologies are going to get interesting.
2020 set up a market with big players having cash and smaller players needing cash. Usually a buyers market, not this year.
New markets in digital, telehealth and healthtech plays outside of the usual FDA regulated guard rails.
Big players will make multiple bets as to not miss land grabs in new multi-billion dollar categories that they have not played in before.
Enter the shoot out of funding models:
VC is early stage investing managing clinical, regulatory and new digitally focused market categories. Longer timelines to revenue and always seeking a liquidity event.
PE traditionally focused on revenue but seeming to be getting in earlier and entertaining more risk in emerging digitally focused healthtech markets.
SPAC’s will disrupt the market with risk, valuations and structure and are straight up competition to VC and PE. In 2020 alone, they brought in $79B to the market, in 2021 to date it has $15B in blank checks with another $11B awaiting IPO’s as of this post.
A SPAC has up to 24 months to make its moves and with that injects more capital into both VC and PE markets now flipping it into a sellers market.