Finding Silver Linings
Times of crisis also tend to be periods of hyper innovation
As entrepreneurs and investors, we strive to predict, create and finance the innovations and opportunities that will disrupt how humans work, live and interact — and those of us that can do so repeatedly, are well rewarded. Good luck and the right timing plays an unappreciated role, and particularly in healthcare and life sciences, Mother Nature often can have outsized impacts. Covid-19 has shown us (once again) the sheer power Mother Nature has in shaping every aspect of our lives and defining our commerce and economy. The negative impacts of this pandemic are widespread, cannot be understated and have been well — if not over — discussed. There are, however, silver linings and opportunities that are, and will be, emerging in the aftermath of this pandemic. We entrepreneurs and venture capitalists are the avant garde.
There is no lack of discussions on the work-from-home renaissance and how this will change business practices for decades to come. The point to make here is that many of these should provide startups an advantage over larger, established companies. Cultural shifts are easier to make with smaller teams and startups typically have fewer sunk costs and existing infrastructure enabling faster pivots. It is far easier to leverage global talent today without relocation expenses that often priced startups out allowing nimble teams to leverage even greater human capital. The managers and teams that can seize these changes and rapidly increase productivity in new operational structures will leapfrog their contemporaries and displace incumbents to become the next industry titans. The VCs’ that can identify and support these teams will similarly be rewarded in years to come.
The most valuable aspect of any company is its people. Eliminating commutes literally gives time back to all of us, but decreases opportunities for team bonding and, especially for those with children in pandemic limbo, complicates the day-to-day for many. Tech solutions provide a number of means for collaboration and continuing existing relationships, but forging new ones can be more difficult. New management paradigms, team building exercises, networking strategies, business development and numerous other methods will emerge that enable some to thrive in the post-pandemic environment. The human migrations are opening numerous opportunities in infrastructure, both in building out where people are moving and repurposing where they are coming from.
Healthcare, biotech and life sciences are high interest areas for PML even before the boom in venture funding in 2020, partially in response to C19. In addition to more capital on the sidelines than ever before, we believe the number and terminal value of opportunities are also sharply increasing. Distributed work environments often crossing many time zones have extended the work day for many of us, which is impacting sleep schedules. Mental health issues are growing and many are postponing care that will lead to later diagnosis in neuro, cardio, dental and oncology impacting patient outcome. On the other hand, the practices for quashing the spread of SARS-CoV-2 are blunt, but effective instruments that should impact multiple infectious diseases. Moreover, innovations in tele- and digital-digital health that were facing friction to market acceptance have quantum leaped into clinical practice.
Infrastructure innovations are sure to follow, from 3D printing and distributed pharmacies to nationalizing and rethinking supply chains. Digital disruption is accelerating in healthcare and robotic integration is also advancing at an increasing pace. Transitioning to the other organisms that share this planet with us, the environment has been getting a breather from our abuse, are there ways to lock these gains in and/or double down? Please connect with us if you have ideas on how to do this. So many people got a pandemic puppy or other fur baby. This is a macro trend that will ripple through for years to come.
While there is room for significant optimism in our battle against SARS-CoV-2, it is more likely that we are at the end of the beginning rather than the beginning of the end. As we move forward there will be additional learnings, challenges and opportunities. For all the entrepreneurs out there with ideas on how to overcome these challenges and capitalize on the opportunities, we want to talk to you! Historically, times of crisis and rapid change are the times that amazing companies are built; as the saying goes, “necessity is the mother of invention.”
Prime Movers Lab invests in breakthrough scientific startups founded by Prime Movers, the inventors who transform billions of lives. We invest in companies reinventing energy, transportation, infrastructure, manufacturing, human augmentation, and agriculture.
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