Three key qualities planetary health investors seek in a startup

Fundraising in Uncertain Times

Ask any founder or investor, and they’ll tell you: Fundraising is never easy. And in a market with this level of uncertainty, the difficulties are compounded.

Kyle Teamey, managing partner at RA Capital Planetary Health, acknowledges the challenges. “Everyone has to go through fundraising, and it’s a relatively challenging market right now. That’s good for a bit of empathy,” he told TechCrunch. Teamey and his colleague Brigid O’Brien recently closed a $120 million fund, their first for RA Capital Planetary Health.

Market Dynamics and Fundraising Strategy

In the two years the team was fundraising, the market changed dramatically. O’Brien notes, “All of this is cyclical.” The pair has experienced market ups and downs over the years, developing a rubric to guide their investment decisions.

Their criteria include time to market, product-market fit, and capital efficiency. Teamey emphasizes the importance of companies efficiently using their funds. While software is a common investment choice, deep tech startups can also be capital efficient.

Investing in Innovation

RA Capital Planetary Health has made investments in a variety of sectors, from geologic hydrogen to AI-enabled recycling. Their choices are informed by market maps that help identify adoption barriers and average time-to-markets.

Navigating Market Downturns

As they navigate the current market downturn, the team remains focused on understanding market dynamics and seizing opportunities. O’Brien reflects, “It’s not always going to be like rocket ships.” Teamey adds, “If you can figure it out now, you’re going to crush it as the markets get better.”