The 2024 election results will play out over the next months and years, and we’ll be keeping a close eye on potential changes that impact our current portfolio companies and the selection of new companies. We have some initial predictions on how the new administration will impact the venture capital and healthcare industries:
Increased M&A activity – Equity and policy analysts predict a surge in M&A activity in 2025, in anticipation of reduced regulation expected from the incoming administration. Indications are that the FTC will be less aggressive in regulating mergers and acquisitions. As interest rates continue to decline, M&A activity is likely to increase. For venture capital, this may mean larger deals and potentially less corporate capital to acquire start-ups.
Reigning in Big Tech – This also appears to be a priority of the new administration, which could constrain Alphabet, Meta, Microsoft and others in jumbo M&A deals and related transactions. While such changes could have an impact on B2B SaaS startups, healthcare startups may be less affected and ideally will benefit from the anticipated increase in M&A activity.
Policy and Deregulation - Some policies are likely to remain in place, such as Medicare drug price negotiation and insulin caps. Other rules seem likely to change, including a reduction in the FDA’s oversight and funding, regulation of reproductive rights, vaccinations, and laboratory testing. Even minor changes may cause swirl – or opportunity – in the healthcare landscape as the market adapts. By reducing federal oversight and regulatory burdens, the new administration will also aim to foster competition, which may lead to increased innovation and start-up activity.
Healthcare Funding Changes - The incoming administration has expressed the intention not to extend ACA (Affordable Care Act) credits, which would affect over 20 million people. Changes to Medicaid could cause 10 million people to lose coverage.However, increased access to alternative health plans may enhance choice and flexibility for individuals.
Lame Duck Session- While healthcare was not a priority of the campaign, issues under consideration by the current administration in the next two months could affect how quickly the new administration turns their attention to healthcare. For example, the sitting Congress may reverse the impending decrease in Medicare reimbursement, extend public health programs, and expand transparency requirements before the term ends. We anticipate some significant reversals or changes to these policies over the next 4 years.
Capita3 News
Capita3 Annual Meeting
Annual Meeting Highlights
We had a great time at our annual meeting, held at the end of November, and were thrilled to bring together investors across our three funds.
The wonderful team at the Coven hosted us and their space was a perfect backdrop for fund and portfolio company updates. Thank you for your positive feedback and we're delighted that connecting investors, advisors, portfolio companies, and friends of Capita3 was a great success.
We'll be hosting gatherings in 2025 and look forward to connecting with many of you in the coming months!
Bridge Funding Global
We attended two Bridge Funding Global Program dinners with potential investors ("LPs") in San Francisco and NYC. The Bridge program is designed to provide access to a curated funding ecosystem for emerging fund managers like Capita3, using virtual and in-person activities. This includes an annual conference and intimate GP/LP dinners across the country. We are happy to report that we are seeing strong interest in our thesis and Capita3's experience.
Capita3 Deal Flow
We continue to expand our deal flow, leveraging the conference season and our deep network to source the most promising start-ups. Kathy spoke at the
Mayo Clinic Platform Accelerate event as a part of Mayo Clinic's collaboration with JETRO Japan on a US Healthcare Immersion Program. Pam and Isabel attended Matter Health pitch events, and Pam delivered several Capita3 LeaderLaunch cohorts as part of our deal flow and company building strategy.
Portfolio Company Updates
MDisrupt's Partnership with
The American Heart Association
Recently we shared with you that the American Heart Association (AHA) invested in MDisrupt, and has since entered into a service agreement to co-develop a platform to connect healthcare experts with innovators. This expansion will leverage the AHA’s vast network of clinicians, scientists, and business professionals. By integrating these resources into MDisrupt’s marketplace, the partnership aims to bridge the gap between innovation and clinical expertise.
Joylux Executes on Partnership
With Halle Berry
In September, Joylux announced their partnership with Halle Berry and the Re-spin X Joylux launch. The press coverage Joylux received was impressive and included the following:
This launch and partnership have set the company up for what we hope will be a substantial uptick in sales growth. Halle Berry will serve as the Joylux brand ambassador and Joylux has co-branded key products with Berry's Respin brand to leverage her network, influence and star power.
Capita3's Ecosystem
Recent Events
We continue expanding our community and network of healthcare experts, syndication partners, and institutional investors through speaking engagements and events.
Highlights include:
Mayo Clinic Platform Accelerate Rochester, MN
November 13
Kathy spoke at this event as a part of Mayo Clinic's collaboration with JETRO Japan on a US Healthcare Immersion Program.
WCD Business Partnership Excellence in the Boardroom
Minneapolis, MN
November 14
Co-sponsored by the Minnesota Chapter of Women Corporate Directors (WCD) and the Minnesota Business Partnership. Speakers include Archie Black (retired CEO, SPS Commerce), Shelly Ibach (Chair, President & CEO, Sleep Number), Brian Murray (CEO, Ryan Companies), and Corie Barrie (CEO, Best Buy).
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