🧬 Profit + Purpose: The New Model for Healthcare Investing | Parag Shah Re-Release (2/2)
"Entrepreneurship is great, but, for me, family always came first. [My] wife and kids always came first. I didn't miss a single game or show or anything of the kids, whether it was at 3 PM or 5 PM or 7 PM, I did that. And then I figured out the work otherwise."
We’re revisiting some of our previous episodes over the holidays this year. Our next rerelease is part 2 of this episode of The Biotech Startups Podcast with Parag Shah, where we discuss his journey from leading the life sciences practice at Hercules Capital to founding K2 Health Ventures. Parag shares candid insights about the pivotal moment he transitioned from banking to private credit, his decision to join Hercules as one of the first employees, and the challenges of scaling a fund from $25 million to over a billion dollars as a public BDC.
Parag offers rare transparency about the difficulties of navigating toxic corporate culture while building a successful business, and how those experiences shaped his vision for K2 HealthVentures. He emphasizes the critical importance of work-life balance in entrepreneurship, revealing how he never missed a single one of his children's games or shows despite the demands of building investment firms. The conversation explores the strategic advantages of evergreen fund structures versus traditional LP/GP models, and how K2's unique approach of combining debt and equity across the capital stack, along with dedicating a percentage of profits to underserved healthcare, represents a new model for impact investing in life sciences.
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Episode Description:
"Entrepreneurship is great, but, for me, family always came first. [My] wife and kids always came first. I didn't miss a single game or show or anything of the kids, whether it was at 3 PM or 5 PM or 7 PM, I did that. And then I figured out the work otherwise."
We’re revisiting some of our previous episodes over the holidays this year. Our next rerelease is part 2 of this episode of The Biotech Startups Podcast with Parag Shah, where we discuss his journey from leading the life sciences practice at Hercules Capital to founding K2 Health Ventures. Parag shares candid insights about the pivotal moment he transitioned from banking to private credit, his decision to join Hercules as one of the first employees, and the challenges of scaling a fund from $25 million to over a billion dollars as a public BDC.
Parag offers rare transparency about the difficulties of navigating toxic corporate culture while building a successful business, and how those experiences shaped his vision for K2 HealthVentures. He emphasizes the critical importance of work-life balance in entrepreneurship, revealing how he never missed a single one of his children's games or shows despite the demands of building investment firms. The conversation explores the strategic advantages of evergreen fund structures versus traditional LP/GP models, and how K2's unique approach of combining debt and equity across the capital stack, along with dedicating a percentage of profits to underserved healthcare, represents a new model for impact investing in life sciences.
Key topics covered:
- Transitioning from banking to private credit and joining Hercules Capital in its earliest days
- Taking Hercules public and scaling from $50 million to over $2 billion in life sciences investments
- Navigating difficult corporate cultures and the importance of building intentional company culture
- Achieving sustainable work-life balance as an entrepreneur without sacrificing family priorities
- Founding K2 HealthVentures with an evergreen structure and dual mission of profit and purpose
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Timestamps:
00:00 Intro
02:11 Pivoting to Private Credit and Starting a Fund
13:06 Importance of Corporate Culture in Firm Building
14:50 Going Public: Benefits and Pressures of a Public BDC
18:60 Knowing When It's Time to Leave
23:33 Taking a Break and Finding Balance
29:34 Founding K2 HealthVentures
38:30 Raising $400 Million: A Stark Contrast
42:14 Evergreen Structure and Long-Term Partnership
45:04 Working Across the Capital Stack
48:46 The Value of Co-Founders
53:14 Looking Ahead: Growth and the K2 Foundation
54:38 Shout Outs and Gratitude
57:43 Advice to Your 21-Year-Old Self
01:02:06 Outro