Healthcare Startups Now Make Up 31% Alphabet Inc (NASDAQ:GOOG)’s Google Venture Portfolio


Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) investment arm, Google Ventures is doubling down on life sciences investment. Google Ventures CEO, Bill Maris, reveals that healthcare startups currently make up 31% of the entity’s total portfolio, up from just 6% two years ago. Besides life science, machine learning is another area of great interest for Google Ventures, according to Maris.

Google Ventures is increasingly investing more money in healthcare startups. One of the drivers of life science investments at Google Ventures is that opportunities in the sector are exciting, both for the company and consumers. However, it also turns out that biotech sector has fewer investment candidates.

Limited investment opportunities

According to Maris, the reason there are limited investment candidates in healthcare is that few biotech companies are being started. The primary reason for that is that it is more difficult to start a life sciences company than a consumer or enterprise app company. For example, while one can start an app company from their living room and reach a billion people in a just a few months, the same cannot be said of biotech startup.

31% of portfolio

Despite the difficulty in finding biotech investment candidates, Alphabet Inc (NASDAQ:GOOG)’s Google Ventures has been able to significantly boost its biotech profile. The entity says that healthcare startups currently account for 31% of its investment portfolio. That is in sharp contrast to two years ago when biotech startup investment made up only 2% of Google Ventures portfolio.

With Alphabet Inc (NASDAQ:GOOG)’s startup investment attention shifting to life sciences, once dominant sectors at Google Ventures are fading into the back banner. For example, the entity’s investment in consumer and enterprise startups now account for only 24% and 23%, respectively, of its portfolio.

Machine learning

In addition to biotech, machine learning or deep learning is another sector in which Alphabet Inc (NASDAQ:GOOG)’s Google Ventures is doubling down its investment efforts. Like with life science, machine learning startups are also not commonplace, but Google Ventures believes that it can find more interesting startups in the sector in the next one year or so.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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