Tuesday, July 1, 2025
ISSN 2765-8767
  • Survey
  • Podcast
  • Write for Us
  • My Account
  • Log In
Daily Remedy
  • Home
  • Articles
  • Podcasts
    Your Body, Your Health Care: A Conversation with Dr. Jeffrey Singer

    Your Body, Your Health Care: A Conversation with Dr. Jeffrey Singer

    July 1, 2025
    Unlocking the Secrets of GLP-1 Medications

    The cost structure of hospitals nearly doubles

    July 1, 2025
    Navigating the Medical Licensing Maze

    The Fight Against Healthcare Fraud: Dr. Rafai’s Story

    April 8, 2025
    Navigating the Medical Licensing Maze

    Navigating the Medical Licensing Maze

    April 4, 2025
    The Alarming Truth About Health Insurance Denials

    The Alarming Truth About Health Insurance Denials

    February 3, 2025
    Telehealth in Turmoil

    The Importance of NIH Grants

    January 31, 2025
  • Surveys

    Surveys

    What concerns you most about your healthcare?

    What concerns you most about your healthcare?

    July 1, 2025
    Perception vs. Comprehension: Public Understanding of the 2025 MAHA Report

    Perception vs. Comprehension: Public Understanding of the 2025 MAHA Report

    June 4, 2025

    Survey Results

    Do you believe national polls on health issues are accurate

    National health polls: trust in healthcare system accuracy?

    May 8, 2024
    Which health policy issues matter the most to Republican voters in the primaries?

    Which health policy issues matter the most to Republican voters in the primaries?

    May 14, 2024
    How strongly do you believe that you can tell when your provider does not trust you?

    How strongly do you believe that you can tell when your provider does not trust you?

    May 7, 2024
  • Courses
  • About Us
  • Contact us
  • Support Us
  • Official Learner
No Result
View All Result
  • Home
  • Articles
  • Podcasts
    Your Body, Your Health Care: A Conversation with Dr. Jeffrey Singer

    Your Body, Your Health Care: A Conversation with Dr. Jeffrey Singer

    July 1, 2025
    Unlocking the Secrets of GLP-1 Medications

    The cost structure of hospitals nearly doubles

    July 1, 2025
    Navigating the Medical Licensing Maze

    The Fight Against Healthcare Fraud: Dr. Rafai’s Story

    April 8, 2025
    Navigating the Medical Licensing Maze

    Navigating the Medical Licensing Maze

    April 4, 2025
    The Alarming Truth About Health Insurance Denials

    The Alarming Truth About Health Insurance Denials

    February 3, 2025
    Telehealth in Turmoil

    The Importance of NIH Grants

    January 31, 2025
  • Surveys

    Surveys

    What concerns you most about your healthcare?

    What concerns you most about your healthcare?

    July 1, 2025
    Perception vs. Comprehension: Public Understanding of the 2025 MAHA Report

    Perception vs. Comprehension: Public Understanding of the 2025 MAHA Report

    June 4, 2025

    Survey Results

    Do you believe national polls on health issues are accurate

    National health polls: trust in healthcare system accuracy?

    May 8, 2024
    Which health policy issues matter the most to Republican voters in the primaries?

    Which health policy issues matter the most to Republican voters in the primaries?

    May 14, 2024
    How strongly do you believe that you can tell when your provider does not trust you?

    How strongly do you believe that you can tell when your provider does not trust you?

    May 7, 2024
  • Courses
  • About Us
  • Contact us
  • Support Us
  • Official Learner
No Result
View All Result
Daily Remedy
No Result
View All Result
Home Financial Markets

Influence of VC on Healthcare R&D

Daily Remedy by Daily Remedy
August 2, 2021
in Financial Markets
0
High resolution jpeg included.
Vector files can be re-edit and used in any size

High resolution jpeg included. Vector files can be re-edit and used in any size

Convergence is a concept in evolutionary biology seen across many different ecosystems.

Different species converge to develop similar features and attributes when competing against one another in similar niches within a given ecosystem. This is why whales, which began as four-legged land mammals, developed fins and tails when they migrated into the ocean – and look very similar to the various fish populating the oceans.

The modern whale and fish occupy similar niches within the marine ecosystem, and consequently develop similar features.

But convergence also applies to business as well, and can explain many of the similarities we see across different industries. Fast food restaurants all operate under the same principles of streamlined labor and cost efficiencies – and often look quite similar barring a few tweaks in the branding and marketing.

It should come as no surprise then that convergence also applies to the economic models within healthcare, particularly the healthcare innovation niche. Traditionally healthcare adopts innovations derived through medical research, and once the research has proven successful or meaningful, we identify ways scale and apply it broadly.

When researchers first invented vaccines, it was developed in a lab and later scaled to healthcare systems across the country.

In this vein, research and development (R&D) is crucial to the healthcare economy. We develop new pharmaceuticals, devices, and therapeutics to improve the lives of patients suffering from medical diseases and ailments. As a result, life expectancy continues to grow (at least until the pandemic), and diseases that were once considered death sentences are now controlled with specific medications or treatments, allowing patients afflicted with those diseases to live normal lives.

However of late, a new player has entered the healthcare economy, one that plays a similar role to that of R&D – venture capital (VC). Like traditional R&D, VC pilots new innovations and identifies ways to scale those innovations.

But there are a few distinct differences. R&D does not have the same pressures to scale like VC, and the pipeline for funding is different.

R&D exists through a system of grants, largely controlled by federal government agencies, public entities whose mission is to fund the development of new science and technologies. VC exists through a system of private investors, albeit with some government funding, whose mission is to provide a return on investment.

The pressure to scale is greater with VC. And like all evolutionary processes, change is influenced by environmental pressures.

But like most evolutionary processes, success is not a zero sum game, though evolution always favors one species to be dominant. It is likely, given the broader trends in healthcare, that VC will assume the dominant role in the future of healthcare innovation, with important contributions coming from R&D, although at a much smaller scale.

Currently the annual federal budget for R&D is $52 billion, as per the National Institutes of Health, the largest and most prominent investment vehicle for R&D grants. In 2020, there was $21 billion invested into healthcare through various venture capital platforms, as per Mercom Capital Group.

In the coming years, this is set to change. We will see a growing influx of VC funds into healthcare, at the cost of R&D grants, until VC investments exceed traditional R&D funding mechanisms. A trend powered by healthcare’s heightened emphasis on scalability.

But the two will remain intertwined, coexisting in the same ecosystem of healthcare innovation, and influencing one another – although VC will have a greater influence on R&D, than the other way around.

VC models of investment have greater pressures to scale, and scale quickly. R&D funds focus more on the science, with scalability considered less important from the onset. However, this has changed. Now policy experts at the NIH and other federal agencies prioritize R&D projects that have a greater potential to scale – reflecting the growing influence of VC on healthcare.

An influence that will grow as healthcare is starting to favor such pressures of scalability.

Remember, animals evolve not relative to one another, but due to environmental pressures. And healthcare, still reeling from the lessons learned during the pandemic, is less focused on the latest, greatest technologies, and more on principles of health equity – providing the maximum clinical benefit to the maximum number of people.

That is code for scale.

This means the healthcare environment favors VC models – and healthcare innovation will acclimate accordingly.

VC will continue to grow in dominance, and R&D will focus on grants for projects that look more like startups tinkering with pilot models. Inevitably VC and R&D will begin to look similar, mirroring each other.

Like two animals competing in similar niches in the same ecosystem, with VC assuming the dominant position and R&D evolving to look like its more dominant competitor.

ShareTweet
Daily Remedy

Daily Remedy

Dr. Jay K Joshi serves as the editor-in-chief of Daily Remedy. He is a serial entrepreneur and sought after thought-leader for matters related to healthcare innovation and medical jurisprudence. He has published articles on a variety of healthcare topics in both peer-reviewed journals and trade publications. His legal writings include amicus curiae briefs prepared for prominent federal healthcare cases.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Videos

Summary

In this episode of the Daily Remedy Podcast, Dr. Joshi discusses the rapidly changing landscape of healthcare laws and trends, emphasizing the importance of understanding the distinction between statutory and case law. The conversation highlights the role of case law in shaping healthcare practices and encourages physicians to engage in legal advocacy by writing legal briefs to influence case law outcomes. The episode underscores the need for physicians to actively participate in the legal processes that govern their practice.

Takeaways

Healthcare trends are rapidly changing and confusing.
Understanding statutory and case law is crucial for physicians.
Case law can overturn existing statutory laws.
Physicians can influence healthcare law through legal briefs.
Writing legal briefs doesn't require extensive legal knowledge.
Narrative formats can be effective in legal briefs.
Physicians should express their perspectives in legal matters.
Engagement in legal advocacy is essential for physicians.
The interpretation of case law affects medical practice.
Physicians need to be part of the legal conversation.
Physicians: Write thy amicus briefs!
YouTube Video FFRYHFXhT4k
Subscribe

RFK Jr.’s Overhaul of CDC Vaccine Policy

Visuals

Official MAHA Report

Official MAHA Report

by Daily Remedy
May 31, 2025
0

Explore the official MAHA Report released by the White House in May 2025.

Read more

Twitter Updates

Tweets by DailyRemedy1

Newsletter

Start your Daily Remedy journey

Cultivate your knowledge of current healthcare events and ensure you receive the most accurate, insightful healthcare news and editorials.

*we hate spam as much as you do

Popular

  • Performative Oncology: The Rise of Cancer Influencers and the Erosion of Evidence

    Performative Oncology: The Rise of Cancer Influencers and the Erosion of Evidence

    0 shares
    Share 0 Tweet 0
  • Outbreak by Choice: The Resurgence of Measles and the Erosion of Vaccine Consensus

    0 shares
    Share 0 Tweet 0
  • Surveillance in Scrubs: How Patient Filming in Medical Settings Challenges Ethics, Privacy, and Care Delivery

    0 shares
    Share 0 Tweet 0
  • Seasonal Surveillance: COVID’s Summer Resurgence, RSV Breakthroughs, and the Return of Treatable Infections

    0 shares
    Share 0 Tweet 0
  • The Algorithm Will See You Now: TikTok’s Role in Rewriting Mental Health Discourse

    0 shares
    Share 0 Tweet 0
  • 628 Followers

Daily Remedy

Daily Remedy offers the best in healthcare information and healthcare editorial content. We take pride in consistently delivering only the highest quality of insight and analysis to ensure our audience is well-informed about current healthcare topics - beyond the traditional headlines.

Daily Remedy website services, content, and products are for informational purposes only. We do not provide medical advice, diagnosis, or treatment. All rights reserved.

Important Links

  • Support Us
  • About Us
  • Contact us
  • Privacy Policy
  • Terms and Conditions

Newsletter

Start your Daily Remedy journey

Cultivate your knowledge of current healthcare events and ensure you receive the most accurate, insightful healthcare news and editorials.

*we hate spam as much as you do

  • Survey
  • Podcast
  • About Us
  • Contact us

© 2025 Daily Remedy

No Result
View All Result
  • Home
  • Articles
  • Podcasts
  • Surveys
  • Courses
  • About Us
  • Contact us
  • Support Us
  • Official Learner

© 2025 Daily Remedy

Start your Daily Remedy journey

Cultivate your knowledge of current healthcare events and ensure you receive the most accurate, insightful healthcare news and editorials.

*we hate spam as much as you do