GLP1s have added $1T in market cap to Eli and Novo over the last 5 years. That's 3x+ the market cap created by all biopharma startups over the last 30 years combined. This is a bit of an indicment of the biotech startup ecosystem. There are many $1T and even $10T drugs to be invented, we just don't fund them. Through no one persons fault, the biotech industry is stuck in a local performance maxima. Faced with lower multiples than tech, biotech funds have to pitch something other than straight multiple to LPs and the only other level is faster liquidity. Biotech has been good at this, with the average age of biotech companies at IPO being 2 years younger than tech companies at IPO (~5.5 years vs 7.5 years). This means biotech funds need to back companies that can get to IPO within a few years. This requirement constrains the types of companies funded by bio funds to 'linear bet' plays (where you buy at some reasonable multiple based on current performance, etc). As any experienced venture fund manager will tell you, a portfolio of linear bets underperforms a portfolio of asymmetric bets. Double unfortunately, no one firm can break this model because no one firm is the sole backer of a company to profitability. You must rely on an ecosystem of capital partners. So if you are the one firm that strikes out and funds asymmetric companies, no one will show up to fund the company downstream and your whole portfolio will fail. For this reason, I think the biggest plays in bio over the coming decade will be mostly backed by generalist funds rather than bio funds. *Note this will perpetuate the trend of sector specific funds underperforming generalist funds (by industry and geo!).