Early-stage healthcare startups are facing a funding cliff
(This story is from our new Health Tech newsletter. If you’d like to sign up, just click here.)
The 2023 calendar year ends as it began: It’s still a hard time to be a healthcare startup.
After 2021’s flood of money, investors have been pumping the brakes. That pause forced some companies to shift their focus from getting bigger at all costs to focusing on profit.
“A few years ago, the pressure was just grow, grow, grow, we will give you more money to grow. You’ll worry about becoming profitable later,” Greg Yap, a healthcare and life sciences investor at Menlo Ventures said. “Now the focus is on, ‘If I give you money now, can you grow to a stage where you don’t have to go raise more money so that you can actually afford to run the business breakeven or profitable?’”
Unlock this article instantly by becoming a free subscriber.
You’ll get access to free articles each month, plus you can customize what newsletters get delivered to your inbox each week, including breaking news.