How health-tech founders can survive a brutal 2024

2023 was hard. 2024 may be even harder. I am not a big believer btw in sugarcoating. Life has taught me that it’s better to face a hard thing with a plan. If you know what to expect, you’re more likely to get through it unscathed. And that’s not the only benefit to transparency. When we are all collectively facing tough times, we can turn to each other for help. Startup founders right now are struggling the most and could use the support.

So let’s get into it. Why might things get worse in 2024?

Let’s take a walk down memory lane. In 2020, you’ll recall that valuations went wild; companies got overstuffed with capital; and VCs raised bigger and bigger funds. Everything was looking good, so many investors marked up their portfolio in anticipation of big returns. When rates spiked in 2022, the party stopped. Public stocks plummeted, making it more challenging for investors in the private markets to justify lofty valuations. Many startups have been subjected to down rounds as capital dried up. Others couldn’t survive the year and have been forced to quietly shut down. Meanwhile, M&A opportunities haven’t ramped up to provide founders with a clean and ego-salvaging exit.