Startups, Sponsored Post

A healthcare investing prediction: The world becomes fickle

Hey startup CEO: How will you need to think differently about protecting your assets in a way that allows you to build value in the long term?

This post is sponsored by Lake Whillans, a distressed venture capital and litigation finance firm that helps companies facing litigation or arbitration.

No one wants to be the flavor of the month – except during that month.

That’s the danger for today’s healthcare startups and their leadership as they look to find the right investors and partners. Our prediction: Alternative investing paths such as venture philanthropy and corporate venture capital will become even more prominent than they are today (and that’s pretty big, considering the results of the survey Lake Whillans commissioned from MedCity News).

But those kinds of healthcare investing trends have a major weakness: One day you’re hot and the next day you’re not.

In short, startups’ timelines often outlast corporate priorities and strategies. Over that course of time, strategics themselves pivot. The organization changes. People leave. So it’s hard to keep a strategic aligned with a startup for the long haul – it’s still all about finding the most efficient way to build value.

Maybe that’s why the innovators MedCity News surveyed were eager to do business with corporate venture but less likely to trust them.

Now extrapolate those findings to all the new investing trends. We know that corporate VC priorities can change quickly.

So what about crowdfunding? There, you’re at the whim of the popular trending tastes of the horde.

How about venture philanthropy? It will likely evolve with the same downsides as corporate VCs: One day it’s this cause and the next day it’s another.

So in the future, many of the investors that value you one day will change their priorities the next.

Now consider this: In that kind of world how will you need to think differently about protecting your assets in a way that allows you to build value in the long term?

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Lake Whillans

Lake Whillans is a distressed venture funding and litigation finance firm that helps companies facing litigation or arbitration. It’s writing an ongoing series to empower startups to better protect their businesses and increase their likelihood of success. Learn more about us at http://lakewhillans.com/.

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