Launching a venture to cure a disease or deliver higher quality care is a long journey through rough, rapidly changing waters. In 2007, the median size of a venture capital financing in healthcare and life sciences was $10M, far short of the capital required to bring a product or service to market, let alone deliver early clinical results to “know” a product actually works. Over the past 20 years, pools of capital have deepened to meet needs of entrepreneurs building capital-intensive companies. Due to the depth of healthcare venture firms today, brand new companies can be armed with $100M, or, in some cases, 10-times that figure from the get-go, giving their captains a chance to generate value while steering clear of financing risk.
However, we believe the capital intensity of the healthcare and life sciences industry has fundamentally changed. In 2025, products and services, from biopharmaceuticals to healthcare delivery, can be conceived of, developed, and tested for far less capital than ever before, and, at the same time, carry a higher probability of success than any time in history. We’ve seen healthcare services ventures require less than $1M to get off the ground, employ the first few clinicians, capitate risk with payers, and become self sustaining. Likewise, a biotech may need less than $25M to assemble a team, acquire or discover an antibody, sign a collaboration with large biopharma, and deliver proof-of-efficacy and early safety in humans. In an environment where capital is abundant, great ideas, talent, and sweat have become the scarce resource of a successful new venture.
At Breezy Point, we recognize this new reality—capital is no longer the rate-limiting step in the reaction producing a leading healthcare company. As such, along with relatively small amounts of money, we invest large sums of time, sweat, and, hopefully, great ideas in the few companies we are involved with. Our efforts include generating and testing product concepts, crafting budgets, negotiating partnerships, raising the next financing, and supporting every day operations. When warranted, we may step in for years at a time in a full-time, operational capacity with an individual company. Although our approach of investing more time than money is unorthodox, we believe this meets the desires and needs of the world’s best scientists, clinicians, and healthcare entrepreneurs.
Onward we sail.
