Renowned investor Kevin Ryan thinks the big money is in healthcare – TechCrunch

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Kevin Ryan has become very wealthy by being in the right place at the right time, including the online advertising network DoubleClick. DoubleClick joined as the twelfth employee and eventually became CEO (later acquired twice). There are also a number of co-founders. Companies including software company MongoDB. Currently, it is worth about $ 30 billion as a listed company. (Ryan still owns “at least half of my stake” in the company, he says.)

The other day we talked to Ryan about his biggest and latest bet on healthcare technology.As previously reported, his investment company Alleycorp is plugging in $ 100 million Primarily Ryan’s own capital is used to launch and fund costumes in space — and it’s on top of about 20 related bets that costumes have already made. I wondered how he was so involved when his previous project was almost completely irrelevant.You can hear the conversation here Or check the excerpt below.

TC: For those who aren’t paying attention, your extreme focus on healthcare technology is amazing. What spurred your initial interests?

KR: One of the things I always do from an Alleycorp perspective is what is the 5-10 year trend we want to bet on. Some areas may be crowded and I don’t think there is a chance there. Everything is already done. And sometimes you have a big chance. So, for a couple of years, I felt like I had a big opportunity, as there are many aspects of the healthcare system that don’t work well in both New York and healthcare in general. It’s incredibly expensive, electronic recording isn’t great, it’s very inefficient. Most of us are very dissatisfied with this entire healthcare system, the opportunity.

TC: You are primarily overseeing your own capital here. Why not invest with billions of dollars in external capital? As a proven entrepreneur and investor in this current market, you can probably do so.

KR: Another reason is that the areas of the ecosystem that I like to play and know the most comfortable and best are in the early stages. So do you want to invest in a $ 3 billion worth of company and reach $ 10 billion? It’s not the place I actually play. I want it to be the most risky and early stage with less capital required. By the way, we are not constrained by capital. Otherwise, it won’t launch anything else. [including incubating a number companies inside Alleycorp like Nomad Health, which raised a $63 million round earlier this year, and Pearl Health, which closed an $18 million round in September]..

When we start a new company, investing $ 1.5 million to $ 2 million is what it takes to get the company on track, and we raise money [from] If you need to collect a lot of money outside, we will collect a lot of money and continue to invest. We try to limit our investment in one company to about $ 10 million. But no, there are many opportunities. And this is where I want to play.

TC: And does this model work in a world where there is currently a $ 100 million seed round?

KR: The changed environment only helps us. Take pearl health. We will invest $ 1.5 million in the company and start with a big equity position. Depending on the company, there is probably somewhere between 30% to 60% of the partners, as there are many management teams and sometimes co-founders. It’s a big position.

Next, companies like Andreessen Horowitz will enter with great praise and big step-ups, putting an additional $ 3 or $ 4 million into the round, but it’s up to us to choose who will enter. Rounds that occur at $ 400 million will probably stop investing at that point. That’s what happens with seed funds. We will be diluted with other large funds coming in, and that’s not a problem. Our money is most effective when we think we can make 10 times more money.

TC: So you are not interested in joining at a later stage.

KR: No. I invested from time to time. After putting a lot of money into Nomad, Nomad’s valuation was about $ 250 million. But I think I can build a $ 2 billion company, so I’m still happy. [our bigger investment], But that’s probably the last round we invest. There are other people who are playing a role in putting money in and thinking that they will make double or triple profits. This is great for their money. They are a long time later.They just go in [a company] Five years. We want to put in our own money, put it in for nine years, and make 100 times more money.

TC: Many of your contemporaries are starting to move, at least from the venture industry or from their company. I wondered what you think about this. Does Alleycorp have a right arm? What if I finally decide to retreat?

KR: First of all, I don’t think it will happen soon.But you know, it’s Brenton [Fargnoli], Carry out health care efforts.I’m Wendy [Tsu] Those who are in the non-medical field. And my guess is that we will have two or three other partners a year from now and I will effectively be the managing partner of the company. But I’m fine for another 10 years.

Renowned investor Kevin Ryan thinks the big money is in healthcare – TechCrunch Source link Renowned investor Kevin Ryan thinks the big money is in healthcare – TechCrunch

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