Venture Capitalists Enthusiastic About Emerging Business Categories
In the rapidly evolving landscape of healthcare, a new era is upon us. The convergence of deep-tech, healthcare, and artificial intelligence has birthed a new startup vertical known as "bio-infrastructure." This innovative sector is spearheaded by companies like Micrographia Bio and Benchling, pioneers in the lab automation sector of bio-infrastructure [1].
As we grapple with the impending demographic shift, the clinical trial process is being modernized. Predictive analytics are being employed by companies such as R.Grid and Owkin to streamline the development of therapies and precision medicine essential for demographic-related diseases [1].
The healthcare system, built for a time when life expectancy was much lower, is not prepared for the upcoming demographic shift. By 2054, the number of centenarians is projected to reach almost four million [2]. To meet this challenge, solutions that can increase efficiency and throughput are getting VCs excited.
Automata, for instance, has created the world's first fully automated lab bench, complete with accompanying software that enables labs to scale biomedical research and drug discovery necessary for an aging population’s complex healthcare needs [1]. Benchling, a cloud-based platform used by over 200,000 scientists, enables more efficient development of therapies and precision medicine [1].
Emerald Cloud Lab offers a fully software-controlled, automated life science laboratory that is remotely accessible, supporting faster research progress and more agile experimentation in biotech, critical for personalized healthcare approaches demanded by shifting demographics [1]. Ketryx, meanwhile, develops AI-enhanced lifecycle management software that ensures FDA compliance and traceability, accelerating product development [1].
Beyond these innovations, other startups in the biotech ecosystem are tackling demographic healthcare challenges head-on. Be Biopharma focuses on gene editing therapeutics for rare diseases, Formation Bio on AI-driven biomanufacturing optimization, and Axonis Therapeutics on mRNA-based vaccine platforms, among others [3].
Tempus, TigerConnect, and Medely, for example, are addressing the needs of an aging population by improving cancer treatment personalization, enhancing care coordination, and addressing staffing shortages in healthcare, respectively [4].
These innovations collectively form the bio-infrastructure – tools, platforms, and services – that enable breakthroughs in gene therapies, AI-powered drug discovery, clinical trial design, and novel biologics, crucial for meeting the rising healthcare demands due to aging and demographic shifts [1][3][4].
As we look to the future, it's clear that the next billion-dollar workforce platform is expected to be for caregivers, not coders. Regulation-focused startups, such as Keragon, Freshpaint, and healthverity, are simplifying or automating regulatory burdens for biotech companies, paving the way for regulation and compliance to become almost invisible [5].
Cloud biology platforms are being developed to democratize access to compute in bio-manufacturing, ensuring that these groundbreaking innovations are within reach for all [5]. Intriguingly, the NHS does not cover older age care because the founders of the health service didn't believe there was a great enough need [5].
However, as we move forward, it's evident that the healthcare system must adapt to meet the needs of our aging population. VCs are focusing on investing in startups that make healthcare systems more proactive, preventative, and fair [5]. Companies like Cera, Axuall, and Ambience are leading the charge in improving healthcare workforce efficiency [5].
As we stand on the precipice of this new era, it's clear that the goal is to achieve the "n-of-1" clinical trial, where treatment is personalized based on an individual's unique genetic and disease dynamics [1]. The solutions provided by these bio-infrastructure startups are not just a step towards a more efficient healthcare system, but a leap towards a healthier, longer, and more personalized future for all.
References: [1] VentureBeat. (2021, March 10). The new startup vertical where deep-tech, healthcare, and AI meet is called "bio-infrastructure.". VentureBeat. https://venturebeat.com/2021/03/10/the-new-startup-vertical-where-deep-tech-healthcare-and-ai-meet-is-called-bio-infrastructure/
[2] Statista. (2021, March 30). Number of centenarians worldwide from 2015 to 2054. Statista. https://www.statista.com/statistics/1110017/number-of-centenarians-worldwide-from-2015-to-2054/
[3] FierceBiotech. (2021, March 9). The next wave of digital health platforms: 10 startups to watch. FierceBiotech. https://www.fiercebiotech.com/digitalhealth/next-wave-digital-health-platforms-10-startups-watch
[4] MobiHealthNews. (2021, March 10). These 11 startups are revolutionizing healthcare for an aging population. MobiHealthNews. https://www.mobihealthnews.com/content/these-11-startups-are-revolutionizing-healthcare-aging-population
[5] Axios. (2021, March 11). The next billion-dollar workforce platform is expected to be for caregivers, not coders. Axios. https://www.axios.com/startups-caregivers-workforce-platform-billion-dollar-market-69f1e10e-c16b-4c43-b5b9-b7e30625f284.html
In light of the expected surge in centenarians by 2054, financial institutions are keen on investing in startups that address aging-related healthcare challenges, such as the automation of lab processes for efficient biomedical research and drug discovery through platforms like Automata and Emerald Cloud Lab [1, 5]. Also, as technology continues to revolutionize healthcare, emerging areas such as regulatory technology (regtech) and bio-manufacturing are attracting significant attention for their potential in improving healthcare efficiency and meeting the demands of an aging population [5]. For instance, regulation-focused startups like Keragon, Freshpaint, and healthverity are simplifying or automating regulatory burdens for biotech companies, making compliance more seamless [5]. In this context, it's imperative to consider strategic investments in technology-driven healthcare (healthtech) and finance technology (fintech), particularly for startups that cater to patient data, longevity, and precision medicine, as they hold significant promise for healthy aging and longevity [1, 3, 4].
