Aaron Sonshine comments in Lexpert's special edition on Technology and Health Sciences on dealmaking in the sectors. Activity is down, but lots of opportunities remain. “It’s probably fair to say that tech and healthcare was the biggest beneficiary of the boom cycle that occurred during COVID, and probably among the hardest hit in the bust that has followed."
Aaron also says:
- Some of what we’re seeing in healthcare and tech is a “flight to quality,” with investors placing less value on future-growth forecasts. “There’s limited appetite today for emerging-growth-stage names.” Venture capital may also prefer to stick to the names they’ve already invested in rather than moving outside their portfolios.
- The concerns around dealmaking are short term. “There’s just so much more opportunity to be explored in this space,” especially with the growth of artificial intelligence technology. “Remote medicine, digital health, data and records, agri-tech—these are all things to look forward to in both health-related tech and tech in general.”
- “There are some really smart minds focused on tech. And regardless of current challenges, strategic buyers, VC and investor money will always take interest.”