Fundraising rebounded after a relatively slow H2'22, hitting $6.8Bin Q1'23 and $6.9B in Q2'23. This uptick is driven by expectationsfor lowering Federal Reserve interest rates, a resetting of valuations and very early signs of a rebounding stock market(mostly in the tech and healthtech sectors). The IPO windowremains largely closed, tying up limited partner (LP) capital inlate-stage companies and limiting return distributions.

Consequently, more investors slowed late-stage fundraising.Seventy funds closed in H1'23, signaling that overall interest inhealthcare investment remains strong. There is still an unprecedented amount of healthcare-dedicated venture capital(vC) to be deployed to top companies at rational, investor-drivenvaluations.