Research, Science, Venture Capital

They are different streams of ideas. I was reading about the layoffs announced by various startups. To my limited understanding, these are punts made by multiple wealthy individuals which, if they work, provide a strategic “exit” to the founders making everyone rich.

As such, there is a lot of money in “valuations”. These valuations depend on network effects or the “subscribers”. A lot of noise weaves around the narrative of “make things and break things” (or whatever thereof).

Arguably, this is a highly simplistic way of looking at things. I am not an expert in financial instruments and derivatives (and know it way less than coronavirus too!), but it hasn’t stopped me from finding a common thread.

Science doesn’t lend itself to these constructs, but people flush with cash don’t see this as an opportunity that would pay itself. Primarily, lesser-known VC’s or individual investors end up backing obscure biological companies that are put up for adoption if they can “prove” that targeting cancer at some even unknown step works.

We might not see the gold rush now but healthcare, despite huge gestation period, might well be the proverbial golden goose. End consumers (aka patients) will have to eventually brace up for increased costs as the industry as a whole will see increased private consolidation and as the governments shrink from their constitutional responsibility of providing accessible healthcare.

The bigger question is- will VC’s actually punt on these different fragments of healthcare? I do hope to explore this question in a later blog post.