GroveStreet Managing Partner Frank Angella is quoted in the Wall Street Journal about the rise in healthcare venture fundraising in 2023 saying “LPs understand this is a long-cycle investment thesis and still believe the core drivers are intact.” As recent performance metrics are distorted with inconsistent valuation adjustments, there is more focus among LPs on the long-term promise of advances in biotechnology and digital health, including the application of AI and ML to ever-larger data sets to identify new treatments. Notwithstanding large reserves of dry powder, investments in early-stage startups are down as many GPs are holding out for mid-to-later-stage companies that had raised capital at lofty valuations. LPs should monitor these trends and their implications on valuations. On the ground, one thing is clear – entrepreneurs are having to do more with less, an operating environment that has historically led to strong returns. Read more here (for WSJ subscribers):