Health tech investments have been red hot the last few years, but Rob Coppedge, the CEO of Echo Health Ventures says while the industry isn’t going to pop, it is a slowly deflating bubble.
Echo Health is the recent creation of Cambia Health and Mosaic Health, the investment arm of Blue Cross Blue Shield and has a long-term strategy in the health investment space. Coppedge has been in and around the health tech finance scene for more than 20 years as well so he might know something abut the industry.
He says what we were seeing in the last couple of years was a ramp-up of “tourist investors” in the space — eager Silicon Valley VC’s hoping to cash in on the trend.
But, “There’s a reckoning coming,” says Coppedge. “If you look at the amount of capital that’s been invested there and the implied market value that has to be created by these companies to get the sorts of exits that would be needed, you know there’s going to be some losers.”
The coming deflation may also have to do with an uncertain startup ecosystem under Trump. At least a few investors have also told us on background they are on edge about investing in health tech due to Trump’s plan to repeal the Affordable Care…