One of the biggest challenges and opportunities of health care investment is that it’s so tied to policy. With the passing of Obamacare, dozens of new startups gained funding to digitize the sector. Now, with a repeal of the law on the table, some health investors say that it could lead to a slowdown on financing for new startups, as well as established ones.
Moreover, it’s unclear whether the health startups that already have some funding will be able to lock down large contracts. “I worry that the customers—payers, providers—will take a step back and take a breath,” says Steve Kraus, a health investor at Bessemer Venture partners in Massachusetts.