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This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

    • Oct 17, 2019

Why Investing in Neglected Areas in Venture Capital Leads to Outsize Returns

Why Investing in Neglected Areas in Venture Capital Leads to Outsize Returns


The Case for Healthcare Venture Capital


Healthcare presents an overlooked opportunity for early-stage venture capital investment, contrasting with the predominant focus on technology. Despite delivering substantial outperformance, healthcare attracts only half the number of investment firms compared to the tech sector. This discrepancy creates a compelling chance for LPs to diversify their portfolios and potentially achieve stronger returns, particularly in areas like biopharmaceuticals and medical technology, where early-stage funding is scarce.


A core criterion for contrarian investors in healthcare is "neglectedness," emphasizing investments in companies addressing overlooked problems or methods lacking adequate funding. This approach targets areas with rational valuations and lower competition, potentially leading to more significant returns.


Access the full report now to explore the overlooked opportunities in healthcare venture capital. By identifying promising opportunities in historically overlooked sectors, venture capitalists can drive both financial returns and positive change in healthcare.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • The Case for Healthcare Venture Capital

  • Healthcare Has Been Neglected By Early-Stage Venture Capital Firms

  • “Neglectedness” Should Be A Core Criteria For Any Contrarian Investor

  • Investing In Neglected Areas Leads To More Meaningful Returns On Capital




Thanks to our Contributor


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At FundRx, we have a global community of over 1,500 venture partners - all healthcare domain experts - that we collaborate with to understand what's feasible and what's not, and to catalyze the companies that we ultimately partner with. If you're interested in learning more about how we invest, please reach out.

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