Investing in Healthcare, Insights

Impact Investing into Healthcare Sectors

In a context where in the pre-pandemic, the traditional non-profit foundations have always helped and funded schemes to apply and develop science understanding among populations. It now follows that in a present world which continues to be affected by Covid-19 across societies and Countries, as a result, the focus has contemplated faster and new ideas to achieve quicker outcomes in order to minimize impacts from diseases. A natural progression of the healthcare sector is now to embrace investment from a variety of sources, thus incorporating profit elements to business models so that it can attract the best and competitive minds in the most collaborative way possible. There is now a realization in non-profit organizations that their visions and practical impact results in the general population, the organizations need to include venture capital structures and as a result, invest directly into start-ups and entrepreneurs to foster greater commercial advances and returns. so that they can innovate in their visions to a fairer healthcare society and its users.

As published by a recent report, it has been stated that healthcare investing has reached over $2.3 trillion, just in 2020.

Funding Research

In terms of more established healthcare sectors, such as cancer research and therapeutics, there are some considerations to take into account, such as regulation and the difficulty to predict performance in clinical trials.

Furthermore currently, the healthcare sector now has more added features that include innovative funding and research. Where we now can see venture capital join-ventures that can include specific care patients, investment projects, and corporate venture capital, all striving to advance science and get capital results from their investments by working together.

There is now an acceptance by the sector, that it needs to move quicker than previously, alongside being able to take more risks so that its results, can help communities in a timely manner, as well as being able to innovate and adapt to current and new market necessities.

Venture Capital Investment

The formula for successful Venture capital funds is based typically and designed to absorb the expectation that nine out of 10 investments will fail during the life of the overall investment fund. In a context where the invested capital will face risks, operate and develop in constrained or previously unscaled environments. As a result, in overall term, the funds to be successful need at least to break even, which in many cases, means that their 10th investment must yield a 1,000% return.

Nevertheless, the investment opportunity in healthcare can in most cases have amazing returns for investors. Which in turn when there are plenty of sources and capital available for investment combined with a general interest in the sector, that can only mean that investments will continue to grow across all healthcare sectors.