Venture capital firms had expressed cautious optimism in the country’s healthtech industry, urging start-up firms to adopt more realistic strategies to survive and secure more capital in today’s landscape.

“Several of the healthtech start-ups that we spoke to offered good propositions, but we suspect that they may face challenges in monetization,” Vertex Ventures partner for Southeast Asia and India Gery Khoeng told The Jakarta Post on Thursday.

“Their competitive edge is narrow, allowing rivals to encroach on their space, potentially leading to challenging unit economics.”

Vertex Ventures general partner for Southeast Asia and India Carmen Yuen said that given the current funding environment, healthcare start-ups might want to take another look at their valuation, especially if it was priced at generous multiples in the earlier funding rounds.

“If they are valued above market average and are unable to deliver according to plan, then it is no surprise that they will require an even longer time to raise [more funding],” she said.

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She said VC firms are closely observing the monetization potential and the differentiation that healthtech firms can come up with.

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