Cota Capital

Janis Naeve, with 25 years of experience in biotech investing, applies her expertise to health tech firms by tackling healthcare challenges through biotech and digital advancements and passionately contributes to making healthcare accessible and effective. Her commitment to driving positive change highlights her impactful role in shaping the industry's future.

In an interview with Pharma Tech Outlook, Janis emphasizes the expanding role of healthcare technology, with a positive focus on the increasing significance of value-based care and AI innovation.

Can you describe your key roles and responsibilities as a partner and provide a brief overview of your career journey in the industry?

I serve as a partner in the healthcare side for Cota Capital, a San Francisco-based venture capital and public investment firm established seven years ago. I have been with the company for a year and a half, and prior to that, I was the head of Amgen. My Shift to Cota Capital was driven by a significant interest in applying healthcare tech at scale in terms of investments.

As a partner at Cota Capital, what opportunities do you see in the U.S. healthcare industry today?

I find multiple elements in the healthcare industry particularly exciting today. Despite being an innovation leader, the U.S. healthcare industry faces a significant misalignment. A $4 trillion industry, healthcare accounts for nearly 20 percent of our GDP. Yet, our healthcare outcomes fall behind other nations. Despite excelling in innovation, the industry struggles to provide affordable patient care. Furthermore, Government policies aim to transition from fee-for-service to a value-based care approach. We stand at a watershed moment in reshaping healthcare, striving for better outcomes in the U.S.

"Experienced individuals using AI will ensure the delivery of suitable drugs to the right patients, making a meaningful impact on the healthcare industry."

These opportunities are exciting, opening the door to patient-centric healthcare. Aligning these aspects can positively impact patients' lives and lead to groundbreaking discoveries, including AI.

When investing in healthcare startups, what are the qualities that you specifically look for?

Based on my early career learnings, I evaluate investments based on four key factors; the technology, the platform, the company's operational plans, and the venture syndicate. These collectively shape my assessment of a company, and while some may be more advanced than others, these are the four qualifications I prioritize.

How do you support portfolio companies in addressing their growth challenges beyond capital infusion?

When it comes to startup companies in the pharma and biotech equipment space, the prevailing challenge is the impact of macroeconomics, particularly for later-stage firms. Early-stage startups secure financing with smaller raises and adjusted valuations, which isn't necessarily negative. Evaluations and capital flow spiked in 2018-2019 but are now changing to a more realistic approach.

The most promising startups differentiate themselves by solving specific problems, not just having technology or a company. Educating about pharma solutions is crucial. A well-balanced team, combining science with practical application, effectively articulates their value proposition to potential venture capitalists.

How do you stay updated on emerging industry trends and industries, given the constant influx of new technologies in today's fast-paced world?

We have a network of deeply involved advisors, and I consult with them regularly. I scan newsletters and reports daily from sources like bankers, fierce publications, and endpoints to identify emerging trends.

Being in San Francisco, I meet with key opinion leaders in the scientific community. Engaging colleagues in the venture capital industry is highly beneficial. We exchange ideas and insights about our portfolios. Also, listening to podcasts helps me stay informed about healthcare-related content and various technologies.

What advice would you offer to your fellow peers and colleagues in the industry? 

Focusing on AI in the pharma industry's drug discovery and development, which has matured over a decade, is crucial. Some companies effectively demonstrate AI's utility. Venture investors should consider teams with pharma AI experience.

Early drug discovery that mainly targets the identification and design of new molecules has seen notable success. As we progress in drug development, there are potential applications in translational medicine, clinical trial enrollment, patient engagement, stratification, and delivering therapeutics to patients while collecting real-world evidence.

Experienced individuals using AI will ensure the delivery of suitable drugs to the right patients, making a meaningful impact on the healthcare industry.