Q&A With Healthcare VC Doug Kelly

I’ve heard a lot of people say recently that healthcare is recession-proof, and I suppose that is true. After all, people still get sick, even in a downturn, maybe more so, and they still need to go to the doc and get drugs and use other medical services. But does that mean healthcare venture capital is also recession-proof? I recently caught up with Alloy Ventures' Doug Kelly, who helped found with Palo Alto-based firm 13 years ago. Kelly and his partners are currently investing in tech and life sciences from a $368 million fund raised in 2005. Kelly, who is a trained physician, wanted to talk about what one life sciences company was doing to stimulate hair follicle growth, while I just wanted to know what that company could do for gray hair. That’s another story, however... Q: How risky is the overall sector right now? A: While there is a lot of upside if you pick the right deals, there is still considerable risk in healthcare investing. Financing/syndicate risk and lack of a clear liquidity horizon are the largest risks in this