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What Healthcare Policy Issues Should Trump, Congress Prioritize?
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By Brian Gormley, WSJ Pro
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Good day. The next Congress and administration of President-elect Donald Trump will face several policy matters affecting the healthcare industry. This week, we want to hear about what you consider to be the top healthcare policy issues for startups and venture capital. Email responses to vcnews@wsj.com.
Last week, we asked crypto investors what they see as key policy issues in their arena and how those might affect startups and investing. Here are responses, edited for length and clarity:
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Greg Kidd, co-founder and chief executive at Hard Yaka: “For the industry to move forward, the key issue is clarity. We need practical answers to fundamental questions—what is a security, a commodity, a derivative, and a currency? We need to know who regulates what and why. If something has to be registered, how is that done? And if we want to see the kind of innovation driven by nimble startups in money, finance, and payments as we have in tech, we need federal pre-emption where possible over a patchwork of state rules.”
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Ryan Condron, founder of Lumerin: “The more the U.S. government puts pressure on crypto and AI, the more the big companies will take the spotlight while the smaller, more nimble players will move off-shore and/or decentralize. If the U.S. tries to crack down and control these technologies, it will lose dominance in these areas.”
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Rob Hadick, general partner at Dragonfly: “The reality is that while there are lots of policy questions we’d like to see addressed, the only thing that truly matters is transforming our current regulatory regime from one that prioritizes opacity, enforcement, and retribution to one that fosters an open dialogue and allows for innovation in the U.S. while still adequately protecting consumers. That alone will provide significant room for domestic growth of the industry.”
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Derek Edws, managing partner at Collab+Currency: “Over the coming year, we’re optimistic that the blockchain industry can start to receive precise regulatory frameworks for all aspects of the stablecoin industry, including transparent reserve requirements for issuers, disclosure and reporting standards, and other mechanisms by which to support a growing consumer demand for U.S. dollars issued on blockchains.”
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And now on to the news...
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PHOTO: HELENA SODERPALM/REUTERS
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Battery maker Northvolt files for chapter 11. Northvolt, a major Swedish battery maker, filed for bankruptcy in the U.S., seeking to restructure the debt it had taken on to pay for its rapid expansion, WSJ Pro reports. Stockholm-based Northvolt said it had more than $5.8 billion of funded debt, according to a filing with the U.S. Bankruptcy Court in Houston on Thursday. The company said in a press release it would continue operating, delivering to customers and paying key vendors during its restructuring in chapter 11. Northvolt said it plans to seek new investment from existing and new investors as part of its restructuring process.
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$100 Million
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The amount an existing customer will provide in new financing to support Northvolt’s business operations during the bankruptcy.
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Impact Investor Illumen Capital Digs Into Direct Investments
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Illumen Capital, an impact investment firm founded by Daryn Dodson, is doubling down on backing first-time private fund managers from historically underrepresented backgrounds and is adding co-investments to its strategy, WSJ Pro reports. The Oakland, Calif.-based firm said it plans to allocate up to 35% of the $32.75 million it raised for its Illumen Catalyst Fund to direct investments in early-stage companies backed by diverse emerging fund managers, while also making investments in the funds led by those managers.
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VC Returns Have Lagged Stocks. Are Secondary Markets the Solution?
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Venture-capital firms traditionally have been bit players in the secondary markets, but that is changing as some funds look to boost disappointing liquidity, distributions and returns for investors. It is unclear the extent to which selling startup shares through private sales is a better strategy than waiting for the initial public offering market to open up or other opportunities to cash out, however.
The sector delivered a return of negative 1.55% in the second quarter of this year, according to preliminary data from investment firm Cambridge Associates. That lags behind the S&P 500 index and the Nasdaq Composite Index.
Some pension funds, university endowments and other limited partners are pushing venture capital to deliver greater liquidity, providing cash that isn’t obtained at a discount to the fundamental value of their holdings. They would also like many funds to boost their returns to a level that more clearly justifies their fees.
Read the full column.
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Here is our weekly roundup of stories from across WSJ Pro that we think you’ll find useful.
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Private equity’s leading women: WSJ Pro Private Equity recognizes outstanding achievements by women in the private-equity and private-credit ranks with its newest class of Women to Watch honorees.
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Funds
Bling Capital raised $270 million for Bling Capital Fund IV, which includes its flagship seed fund and an opportunity fund. The firm invests in sectors including software, healthcare, financial services, consumer internet and marketplaces.
Blue Bear Capital, a venture and growth-equity investor focused on AI-powered solutions for energy, infrastructure and climate challenges, has raised $200 million, including $160 million for its third fund. The Los Angeles- and Jackson, Wyo.-based firm secured $150 million for its second fund in 2021.
People
Anzu Partners said Hunter Brown has returned to the firm, joining the investment team as a principal to focus on investments within the critical technologies sector. He was previously an investment director at the firm from 2017 to 2021.
Exits
Software company N-able acquired cybersecurity platform and existing strategic partner Adlumin. The deal will include about $100 million cash and 1.58 million shares on the closing date, along with $120 million in future cash installments and up to $30 million in potential cash earn-outs.
Data-cloud company Snowflake agreed to acquire open data integration platform Datavolo for an undisclosed amount.
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Odoo, a Belgium-based developer of management software applications for small and mid-sized businesses, scored a €500 million investment led by CapitalG and Sequoia Capital, giving the company a €5 billion valuation.
Lighthouse, a London-based technology platform for the travel and hospitality industry, raised about $370 million in Series C growth funding. KKR & Co. led the investment, which included participation from F-Prime Capital and others.
Enveda, a Boulder, Colo.-based startup using artificial intelligence to translate natural compounds into new medicines, gathered $130 million in Series C funding led by Kinnevik and FPV Ventures.
Ladder, an Austin, Texas-based strength training app, added $105 million in new funding, including a $90 million growth investment from General Catalyst’s Customer Value strategy, and a $15 million Series B round led by Point72 Ventures and ADvantage VC.
League One Volleyball, a Los Angeles-based youth volleyball brand, picked up a $100 million investment from Atwater Capital, Ares Management and Left Lane Capital.
Nivoda, a diamond and gemstone marketplace headquartered in New York and London, secured a $51 million investment led by Northzone.
Lightning AI, an AI development platform, grabbed a $50 million investment from Cisco Investments, K5 Global and others.
Pickle Robot Co., a Cambridge, Mass.-based developer of robotic automation systems that unload trucks, landed $50 million in Series B funding from Catapult Ventures, One Madison Group and others.
Keychain, a New York-headquartered manufacturing platform for the packaged goods industry, collected $15 million in new funding led by BoxGroup.
Noble, a Toronto-based startup connecting stablecoin issuers with blockchain builders and application developers, raised $15 million in Series A funding led by Paradigm.
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BBVA has scaled up to 3,300 ChatGPT licenses and the bank plans to add more in 2025. PHOTO: VINCENT WEST/REUTERS
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