1、Published August 6,2024JDJ:Replace photoIf 2023 was the year of venture market shock and volatility,2024 may be the year of adjustment and cautious optimism.Despite a higher-for-longer interest rate environment,challenging public markets and subsequent drought of distributions to paid-in capital(DPI

2、),we saw slow but steady increases in healthcare venture capital(VC)investment,impressive VC fundraising and improved initial public offering(IPO)activity in biotech.Investment seems bifurcated into the“haves”vs.the“have nots,”with VCs increasingly focused on quality over quantity.For many deals,inv

3、estors can bide their time to ensure a solid syndicate forms before making a move.In biopharma,VCs continue to focus on advanced clinical assets and well-characterized modalities while eschewing early-stage platforms.In healthtech,heightened expectations are rooted in strong unit economics and healt

4、hy margins instead of top-line revenue and projected growth rates.Across all sectors,valuations are under unprecedented scrutiny.At least 28%of reported deals are down or flat rounds1,marking the highest level in recent history.Whats more,only 14 of 29 unicorns formed in 2020 and 2021 have come back

5、 to market to raise another round,meaning the“markdown hammer”has yet to fully drop.With 2023s shock to the venture market,investors quickly turned their attention to supporting their most promising companies.This strategy continued this year as the exit market remaining historically challenging,res

6、ulting in more insider and bridge rounds.Promisingly,weve heard that some investors are spending less time on portfolio management rationalization in 2024.Each sector has its own story to tell this year.In biopharma,the IPO window finally opened wider with 13 IPOs so far and six in a 15-day span.How