How top healthcare VCs generate alpha

by Alpha Partners Editorial

What does it take to generate consistent venture returns in one of the most complex and regulated industries in the world? Healthcare touches nearly every person on the planet, yet the system remains riddled with inefficiencies, misaligned incentives, and massive opportunities for innovation. For venture capitalists willing to navigate its complexity, the rewards-and the impact-can be extraordinary.

In this episode of Driving Alpha, Steve Brotman sits down with Garheng Kong, Founder and Managing Partner of HealthQuest Capital, to explore how leading healthcare investors identify breakthrough opportunities. Garheng shares why his firm takes a modality-agnostic approach to healthcare investing, evaluating companies across medical devices, diagnostics, biopharma, healthcare services, and health IT. The conversation dives into how modern healthcare innovation must deliver measurable improvements in both patient outcomes and economic efficiency to gain adoption in today's payer-driven environment.

With more than 25 years of experience and over 40 successful IPO and M&A exits, Garheng Kong brings a rare multidisciplinary perspective to venture investing as a physician, scientist, engineer, and entrepreneur. Throughout the discussion, he shares insights on evaluating founders, the structural inefficiencies that create massive innovation opportunities in healthcare, and the transformative role AI may play in both improving care and reducing costs across the healthcare system.