Monday, Dec 4, 2023 | 12:00 AM ET

S1 E2: The Beat: Rethinking Valuations in Healthcare: The Next Horizon for VC Investors

Picture a venture capital industry leader with a distinct edge in healthcare, with over 40 years of focused practice and integration of partners with diverse expertise and networks.

In this episode, Steve Kraus, Bessemer Venture Partner, shares the Bessemer Venture Partners' unique approach to investing, the current state of the VC industry, and the future of healthcare technology. Steve shares insights on how Bessemer leverages their deep expertise in healthcare and AI to attract the best founders and make impactful investments. He also addresses the recent challenges faced by the industry and offers an optimistic outlook on the upcoming valuation reset. Furthermore, Steve highlights the importance of outcomes-driven entrepreneurship and the potential for AI to revolutionize the healthcare sector. 

Join us as we uncover the possibilities and opportunities in the evolving landscape of healthcare technology with Steve Krause. Stay tuned for a thought-provoking conversation ahead!

About Steve Krause:

Steve Kraus is a partner at Bessemer in the Cambridge office and a world-renowned healthcare investor. He is the author of Bessemer’s 10 Laws of HealthcareBenchmarks for Growing Health tech Businesses, and is a co-host of A Healthy Dose podcast. Steve currently sits on the boards of Bright Health Group, Headspace Health, Groups, Qventus, AspenRx, HouseRx, Oshi Health, Folx Health, Mural Health, Alcresta and US Health Partners.

Prior to joining Bessemer, Steve worked for a growth-stage, private equity firm and as a management consultant at Bain & Company. He has also worked on several different political campaigns throughout his career.

He serves as an Observer at Beth Israel Deaconess Medical Center, an advisor to Boston Children’s Hospital and the Harvard Business School’s Center for Entrepreneurship, and on the investment committees of BCBS Massachusetts and Rock Health.

Steve graduated from summa cum laude from Yale University and earned his MBA from Harvard, where he was a Baker Scholar.


Things You’ll Learn:

  • With a dedicated healthcare practice for over 40 years, Bessemer brings a unique advantage by integrating partners with diverse industry expertise and networks. This approach allows them to make strategic investments in various industries, including healthcare, software as a service, fintech, consumer, and crypto.
  • The Intersection of Healthcare and AI: One of the fascinating topics discussed is how Bessemer leverages the convergence of healthcare and AI. 
  • By combining Bessemer’s healthcare team's knowledge with a deep AI team, they have built one of the most extensive portfolios in healthcare AI today. This focus on innovation and emerging technologies positions them to tap into the potential of AI to drive down costs, improve outcomes, and revolutionize the healthcare industry.
  • Navigating the Current Landscape: With recent economic challenges, including market downturns and valuation adjustments, the VC industry has faced some headwinds. However, Steve Krause highlights that the current valuation reset has created opportunities for investors.
  • Steve emphasizes that the healthcare sector, in particular, holds immense potential, and as the public markets open up, the next cohort of healthcare tech companies will emerge, propelling the industry forward.



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