Sergey Jakimov: hype cycles can not overshadow progress in the longevity industry

Sergey Jakimov, the managing partner of Latvian investment firm LongeVC, gave his opinion about the influence of hype cycles on emerging technologies, particularly in the health industry. He believes venture investors should always apply a critical lens to emerging technologies before deciding to support a new company. It is also vital to conduct long-term studies and side effect monitoring before discussing the success in public. 

Hype cycles occur when new technologies rise in popularity and dominate an industry. They are typically flashy, with an engaging user interface and attractive outputs. 

The hype cycle has five phases. Some technologies spend little time in the first phase, developing prototypes and immediately capturing public attention. Then they switch to phase two when the hype has a peak. At this phase, articles appear about “X technology in the industry” – for every industry. 

Phase three to phase five represent a positive movement for integration. Developers set realistic expectations, and the first limitations make themselves known. It eventually reaches an equilibrium where companies integrate the technology or move on to other areas. 

In the longevity industry, investors should pay extкa attention to overhype technologies. "Breakthroughs are not simply something new to explore; they can mean the difference between life and death". People are tempted by getting quick results and choosing quick-fix medicine solutions, instead of having a healthy lifespan. Also, doctors, patients, and pharmaceutical companies are eager for new treatment options. Luckily, in modern times there are regulations to balance discoveries with proven results and prevent these people take new and "miracle" drugs without thinking.

Sergey Jakimov offers investors to ask themselves a few questions before investing in emerging technology in the longevity industry.

- When did the company enter the emerging technology field or start using the new technology? Was it part of their business plan, or was there a sudden pivot? Understanding their motivation and experience with the industry can offer clues whether they are buying into a hype cycle or developing something for the long term.

- What is the experience of the team? Do they have a background in technology? Ideally, you should be able to see a combination of scientific excellence and market/business development understanding.

- Have they considered the regulatory implications? Building without regulations allows innovation but can cause problems if regulators introduce new guidelines. 

- Is their entire business based on a single technology? Overcommitting to a single vertical, especially an emerging one, is risky.

The longevity startups should focus more on critical research rather than on hype circles. Besides, it is important to make a strategy for public rollouts of new technologies.