“VC funds face challenges in not making returns on their portfolios, which means they will have to hold onto them longer,” Garai said. “This will also make fundraising challenging and adversely impact peoples’ enthusiasm about life science companies, creating a vicious cycle.”
While there is the option of these companies going the SPAC route, Garai noted that eventually underperforming SPACS will be forgotten by investors. IPOs will not be an easy fundraising route either, as Garai explained that it will take time for the market to right itself.
