In conjunction with Cooley’s Q1 Venture Financing Report, Josh Seidenfeld sat down with Julie Yoo of Andreessen Horowitz to get her take on the state of venture capital investing.

Key Insights from Julie Yoo

On predictions about the healthtech industry: “Software is (finally!) absolutely eating the healthcare world. In fact, the nature of the major challenges that the healthcare industry has faced in the last couple of years … are so conducive to software-based transformation that we have more conviction than ever on our core thesis.”

On why we are seeing a downward trend in investments in technology and life sciences companies: “Many growth-stage companies raised large enough amounts of minimally dilutive capital in 2021 and early 2022 that they had enough runway to live through this window without having to raise.”

On why deal terms remained stable while invested dollars, deal volume and up rounds are on the decline: “Early-stage deals tend to have less deal term structure, so we’re most likely seeing cleaner terms since most of the deals that got done in Q1 were in the earlier-stage zone.”

Read full commentary from Julie Yoo

Posted by Cooley