Forecast for Health Startups Shows Bright Spots Amid Gloom

Joe Gangitano’s commentary was included in a Law360 article taking a closer look at funding healthcare startups in light of some companies continuing to attract investment despite tough circumstances.

Despite recent news, it's still too early to say whether there is a move away from the era of fewer but larger fundraises, Joe noted. "So to the extent companies are accepting lower valuations, whether that be flat or down rounds, I think you'll start seeing more transactions get done because they need money at the end of the day," he said.

Ultimately, raising funds will be easier for founders who are realistic about their valuation expectations. The more that happens, the more we'll see a greater number of deals getting done, he said. Other factors are beyond their control. Joe added that the turbulent public markets have also dampened optimism in the private sphere. "While the public markets are still uncertain, I think we're still going to see a lot of choppy waters in the private markets," he said.