RA Capital Planetary Health closed a $120 million fund and shared their investment strategy, emphasizing adaptability in a changing market.
Key criteria for investment:
- Time to Market: Prioritizing companies that can generate revenue quickly (within five years).
- Product Market Fit: Ensuring there's a demand for the product being built.
- Capital Efficiency: Focusing on companies that can efficiently utilize venture capital.
They invest in sectors ranging from geologic hydrogen to AI-enabled recycling, using market maps to understand adoption barriers and time-to-market averages.
RA Capital Planetary Health emphasizes navigating market cycles effectively, suggesting that understanding the current downturn can lead to significant success as markets improve.