#50 JPM 2024 Takeaways from Neil Carpenter
Key Takeaways JPM 2024 from Interview with Neil Carpenter
The JPM 2024, a notable annual event, took place in San Francisco recently. Despite the unique format of the conference, with many attendees engaging in external meetings, coffee shop discussions, and hotel huddles, key insights emerged. Neil Carpenter shared his observations, shedding light on various aspects of the conference.
1. Attendance Trends:
- Unconventionally, many participants didn't physically attend the core conference but engaged in peripheral activities.
- The competition with CES (Consumer Electronics Show) led to a dip in attendance, with some attendees leaving for CES mid-week.
2. Capital Markets and Venture Trends:
- Capital financial markets in the health tech space have evolved, impacting attendance and participation.
- Venture firms faced challenges, and some opted not to send representatives, while others reduced their presence.
- Last-minute hotel bookings became more affordable, suggesting a decline in demand compared to previous years.
3. Health Tech vs. Biotech/Med Tech:
- Health tech, while relevant, remains a smaller player in capital markets compared to biotech and med tech.
- The discrepancy is evident in the scale of conferences, parties, and overall industry focus.
4. General Catalyst's Strategy:
- General Catalyst's buy-health-system strategy raised questions about its unique value compared to existing partnerships with health systems.
- Attendees expressed confusion about the rationale behind owning a health system and the potential benefits.
5. Emerging Trends:
- Aging emerged as a significant topic, reflecting the pressing need to address the challenges of caring for an aging population.
- Generative AI garnered attention, with a focus on clinical proof points and applications beyond documentation improvement.
- Shifts in focus from social determinants to efficiency within hospitals, cost reduction, and profit-oriented approaches were noted.
6. Challenges in Health Tech:
- The price transparency narrative seemed to face challenges, with individuals from such companies actively seeking new opportunities.
- Profitability concerns were raised, especially for companies operating at a small scale.
7. Data Plays and Acquisitions:
- Despite being less flashy, data plays and acquisitions in the health tech space generated interest.
- McKesson's data acquisition announcement highlighted a growing trend in building robust data foundations.
8. Venture Studio Models Under Pressure:
- Venture studio models faced challenges, and there was a recognition that additional support beyond financial backing is crucial for portfolio companies' success.
- Some venture firms strategically invested in coworking spaces and platforms to enhance market access for their portfolio companies.
9. Funding Landscape and Future Predictions:
- Raising venture capital was described as a challenging process, with entrepreneurs navigating complex dynamics.
- There's uncertainty about how long venture funds can afford to hold onto cash, leading to potential changes in the funding landscape.
- The possibility of increased acquisitions and a narrower pool of high-quality startups was acknowledged.
10. Miscellaneous Insights:
- The conversation touched upon various topics, from the challenge of selling to risk-averse hospitals to the potential benefits of intermediaries in supporting value-based care for aging populations.
- The discussion included anecdotes about Davos and Burning Man, offering a glimpse into the broader industry landscape.
In summary, the JPM 2024 highlighted ongoing shifts in the health tech space, including evolving funding dynamics, emerging trends, and the need for strategic support beyond financial investment. As the industry adapts to changing conditions, these takeaways provide valuable insights into the current state and potential future developments in the healthcare sector.
And yes…we mentioned Planetary Health First Mars Next First Live in Person Meet up: Speak Easy & Freely, a gathering where you bring a friend, healthcare is a mess so better to go together to make it way better.
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