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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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