Biotech investors have not often looked at a balding head of hair and been struck with inspiration, even on the rare occasions when a new treatment is pitched to them. More often, they’ve rolled their eyes before moving on to the next slide deck from a new cancer drug developer or AI-focused startup.

But a funny thing happened last month: Two startups — Pelage Pharmaceuticals and Veradermics — raised a combined $270 million to develop treatments for a common form of hair loss, known clinically as androgenetic alopecia.

Cathy Friedman, an executive venture partner at GV, initially scoffed at the idea of investing in a hair loss company, assuming it was peddling the kind of “lotions and potions” that have long promised hair growth but, in reality, did little. “We’re like, ‘I’m sorry, we’re

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