Author: Ki Mae Heussner

  • Jawbone buys BodyMedia to go big in wearable technology and health tracking

    Over the past couple of years, Jawbone has been building up its position in wearable computing and health tracking with the launch of its Up wristband and the purchase of MassiveHealth and Visere. But with the acquisition of BodyMedia – a pioneer in wearable body monitoring technology – Jawbone is showing its deepest commitment yet to the space.

    Announced Tuesday, the acquisition was a cash and stock deal valued at north of $100 million, according to sources close to the matter. With BodyMedia’s technology and expertise, Jawbone CEO Hosain Rahman said, his company plans to further its innovation in health and wellness, as well as uncover new applications for wearable computing in general.

    “We think that everything in the world is going to be smart and interconnected with lots of sensors,” said Rahman. “The more interconnecting points you have, the more signals you integrate in that system, the more intelligent things you can do for the user.”

    BodyMedia: more than 500 trillion sensor points collected and analyzed

    In the past few years, health tracking has become more en vogue with the launch of devices like the Nike Fuelband, Fitbit (see disclosure) and Up. But BodyMedia’s creators John (Ivo) Stivoric, an early innovator in wearable sensors and the co-founder of two design studios at Carnegie Mellon University, and Astro Teller, a former Carnegie Mellon computer scientist and entrepreneur, launched their company in 1999.

    Since then, the company says its multi-sensor body monitors (like the armband worn by contestants on the TV show The Biggest Loser) have collected and analyzed more than 500 trillion sensor points. Unlike other consumer fitness trackers, BodyMedia’s devices have also received FDA clearance and are backed by clinical outcomes. In addition to selling direct-to-consumer, the company targets health professionals with wearable monitors that enable them to help people with obesity, diabetes and other conditions.

    The 14-year-old company has raised $49 million from investors including Comcast Ventures, Draper Fisher Jurvetson ePlanet , Draper Triangle Ventures , Ascension Health Ventures and InCube Ventures.

    Three phases for the wearable computing market

    Right now, the wearables market is mostly in the accelerometer phase, said Rahman. With that technology, the Up wristband, for example, enables Jawbone to collect and provide users with information on their activity and sleep. But, he added, the BodyMedia acquisition will allow Jawbone to stake out a leading position in the next two phases of the market, which will revolve around multiple sensors on the body and the services and applications that connect and make sense of all that data.

    As part of the acquisition, BodyMedia’s 60 employees will join Jawbone. For now, Rahman said, BodyMedia’s devices will continue to be sold under the BodyMedia brand. In time, he said the goal is for all of the devices to be part of the same “unified service system.” For example, if a person who uses an Up wristband to track day-to-day activity needs to share health information with a clinician for a condition, he could use a different monitoring device but it would integrate with the same software system.

    “You have different events in your life that you need to be able to track and understand – this broadens and enriches our [suite of products] we can [offer] in the context of all of those life moments,” Rahman said.

    The shift to passive tracking

    Beyond health care, he added, “everything in the world is moving to passive tracking.” Consumers increasingly want their devices to just know where they are, how much they slept, how much they moved and what they might be interested in. More sensors means Jawbone can better understand its users and provide better services, he said.

    In addition to announcing the BodyMedia acquisition, Jawbone said it had launched an “Up Platform” for iOS with 10 partners, including IFTTT, LoseIt, MapMyFitness, MyFitnessPal, Notch.me, RunKeeper, Sleepio, Wello and Withings. Users can merge their data from those apps with their Up data. For example, they can log a run in RunKeeper and then view the data in Up or step on a Withings scale and then monitor their weight in Up.  The company also said that it soon plans to extend the ecosystem of Up-integrated services by opening its API.

    Jawbone declined to disclose how many people use the Up wristband, but said, in aggregate, the system tracks more than a billion steps and 610,000 hours of sleep each day and that, on average, users check their app five times a day and sync their data twice a day.

    Disclosure: Fitbit is backed by True Ventures, a venture capital firm that is an investor in the parent company of this blog, Giga Omni Media. Om Malik, founder of Giga Omni Media, is also a venture partner at True.

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  • With new exchange, TareasPlus takes on Khan Academy in Latin America and beyond

    Khan Academy has quickly become one of the most popular educational sites in the U.S. and around the world. But TareasPlus, a startup with offices in Colombia and San Francisco, believes it may have a leg up with Spanish speakers south – and increasingly north – of the border.

    Since launching last year, the company, which calls itself the “Khan Academy of Latin America,” has produced more than 3,600 instructional videos on math and science topics for Spanish-speaking students, teachers and adults looking for content on finances and other practical matters. On Monday, the startup said it was taking its biggest step toward making money with the launch of a new online marketplace, called Aula, that enables teachers and other users to create online lessons and upload their own videos to TareasPlus.

    “We’re trying to push the teacher to create content of his own,” said founder and CEO Hernan Jaramillo. “It allows the teacher to simply create his own set of courses and easily share it with his students.”

    While teachers may already have access to learning management systems (LMS) that enable them to share video and other kinds of instructional content with students, Jaramillo said they tend to be cumbersome and clunky to use. For $24 a year, teachers can use the web and mobile-optimized TareasPlus to curate video playlists made from content produced by the startup and other users, as well as include questions and exercises for students and track their progress.

    The bigger revenue opportunity for TareasPlus is the capability for teachers to create and host their own courses on the site. Much like instructors on online learning startup Udemy, teachers can offer courses for free or a price of their choosing with TareasPlus taking 30 percent of the earnings.

    Targeting Spanish-speakers in the U.S. and around the world

    Initially, Jaramillo said, the company thought that its users were individuals aged 13 to 25 who searched online for math and science questions related to their studies. But it realized that about 40 percent of its users are older – aged 35 to 65 – some of those adults include teachers who use the videos in classes or on their blogs, but others are parents looking to review content before helping their kids or adults looking for practical instruction on calculating monthly mortgage or car payments.

    To date, Jaramillo said, just 5 percent of the site’s users have been based in the U.S.  But over the next six months, he estimates that the figure could double or triple as TareasPlus uses its new marketplace to attract a larger global audience and builds up content relevant for U.S. users. For example, he said, many of its U.S. users are adults searching for help with “daily math” and finance problems, so future courses could include “math for moms” or “math for traders.”

    Earlier this year, Khan Academy announced a partnership with the foundation supported by billionaire Carlos Slim to translate its online video content for students in Mexico and Latin America. (The non-profit is focused on translating its content into more than a dozen languages.) But Jaramillo said his company’s new exchange gives teachers an opportunity to potentially access Spanish-language content from a greater range of sources and make their own lessons available to a wide market.

    The startup, which says that it has attracted users with search-engine optimized video content, has raised $1.8 million from online education company Academic Partnerships and says it receives 300,000 to 400,000 unique visitors each month.

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  • It’s not always about ads, as data researchers use Facebook likes to gauge public health

    Facebook “likes” don’t just give marketers a sense of whom to target with advertising, they’re increasingly giving public health officials valuable clues into the country’s wellbeing.

    Recently, researchers at the Children’s Hospital in Boston analyzed aggregated data on users’ Facebook activity and interests to examine the connection between online social environments and obesity prevalence. They found that areas with higher percentages of people with interests related to healthy activities and fitness had lower obesity rates, while populations with a greater percentage of people who had liked or commented on television was an indicator of higher obesity rates.

    Interestingly, the study found that social data about sports in general was not correlated with obesity because people may be merely watching sports or following it, not taking an active role in it.

    The researchers, who published their findings in the journal PLOS ONE, not only determined that Facebook data could track obesity prevalence, they suggested that social networks could be used to explore additional conditions and deliver health interventions and public health campaigns.

    “I’d hope that people would look to this data source to understand how it can improve our understanding of chronic diseases and population-level conditions,” Rumi Chunara, an instructor at Harvard Medical School and an author of the study, told me.

    Chunara’s study isn’t the only one to test Facebook’s value as a tool for public health research. A study published earlier this year found that hospitals with more Facebook “likes” have lower mortality rates and higher patient satisfaction scores. And, citing a search for the word “Facebook” on PubMed (a public database of life sciences research), a recent Wired article reported that there have been about 400 academic papers published in the last four years that include the social networking giant.

    Traditional public health research often consists of phone surveys that can require considerable amounts of money and time, but Chunara said a major advantage of using Facebook data is that you can reach a wide swath of people quickly and at a low cost. Facebook also enables researchers to drill down to specific neighborhoods and that kind of fine-grained data can be difficult to come by, she added.

    Additionally, Facebook can provide real-time data, as well as the opportunity to explore how interactions with friends and contacts and health messaging could influence user behavior, the study said.

    Still, despite Facebook’s advantages when it comes to public health research, it’s important to bear in mind the limitations of web and social data. As a February Nature article on the flaws in Google’s flu-tracking techniques highlighted, social data doesn’t always mean what we think it does. For example, some researchers think that media hype about the flu this past season could have led to a volume of web searches for flu-related terms that was disproportionate to the actual threat.

    But Chunara pointed out that there can be biases and issues with more traditional data sets as well. “Every data set has challenges and you have to definitely approach [them] carefully [so as] not be misled,” she said.

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  • TechStars Chicago’s first class of startups: patient-monitoring, matchmaking and marketing

    A new class of entrepreneurs is getting ready to take on the Windy City. On Thursday, TechStars Chicago, which was formed earlier this year when the Boulder, Colo.-based TechStars program joined forces with the local Excelerate Labs, announced its first cohort of startups.

    Troy Henikoff, the program’s managing director, said the 10 startups were selected from an applicant pool of 904, which was double the size of the applicant pool last year. The 10 companies not only reflect a range of industries, he said, the new cohort is geographically diverse, with just three startups from Chicago and a couple from outside the U.S.

    Launched three years ago, Excelerate Labs was led by a group of entrepreneurs and venture capitalists, including Henikoff (founder of SurePayroll), OkCupid founder Sam Yagan, Sandbox Industries’ Nick Rosa and New World Ventures’ Adam Koopersmith. Its 30 companies have raised a total of $30 million, the group said. But teaming up with TechStars elevates the program and gives startups access to a national network of mentors and investors.

    Here are the program’s 10 new startups:

    CaptureProof (www.captureproof.com) – Currently in beta, CaptureProof gives patients a secure site for tracking their health with photos and video and then sharing them with their doctors. Through the site, doctors can monitor patients’ health trends and progress remotely.

    HIPOM (www.myHIPOM.com) – For parents who want to limit their kids’ access to the internet, HIPOM provides a cloud-based solution for controlling any individual device in the home.

    Nexercise (www.nexercise.com) – Nexercise is an iPhone and Android app that helps people lose weight and improve their fitness through competitions with friends, alerts and rewards.

    Pathful (www.pathful.com) – A web analytics service, Pathful says it tracks all kinds of visitor interactions and doesn’t require tagging.

    Peoplematics (www.peoplematics.com) – Peoplematics is a service that enables employees to find and share information across their personal cloud.

    Project Fixup (www.projectfixup.com) – A matchmaking service, Project Fixup pairs up people for one-on-one dates based on their schedules and interests.

    SimpleRelevance (www.simplerelevance.com) – An email marketing platform, SimpleRelevance says its analytics-driven approach can improve revenue per message by 30-300 percent.

    SocialCrunch (http://about.socialcrunch.com) – SocialCrunch says it builds a “behavior graph” of internet users to help marketers learn about and reach a target audience.

    Sqord (www.sqord.com) – A “Fitbit for kids” (see disclosure), Sqord’s watch-like fitness tracking device promotes activity through friendly competition.

    TradingView (www.tradingview.com) – An online community of investors and traders, TradingView aggregates web stock charts and enables investors to share their ideas.

    Disclosure: Fitbit is backed by True Ventures, a venture capital firm that is an investor in the parent company of this blog, Giga Omni Media. Om Malik, founder of Giga Omni Media, is also a venture partner at True.

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  • How a virtual health insurance card could help doctors reduce bad debt

    In an era of e-tickets, bitcoins and app-based banking, it seems pretty antiquated that we still have to fumble through our wallets for an insurance card each time we go to the doctor’s office. But a Philadelphia-based startup has a plan for making those flimsy pieces of cardboard digital — and the upside isn’t just the potential for going paper-free.

    With the rise of high-deductible plans, patients are increasingly on the hook for more of their medical expenses than they’ve ever been before. For patients, that means a bigger need for tools that provide more transparency about health care costs. And for doctors, particularly independent physicians, said Medlio co-founder and CEO David Brooks, that means a growing problem with collecting payment.

    According to a 2007 report from McKinsey, hospitals and providers usually only collect about 50 percent of the postinsurance balance (or the amount owed by the patient beyond what insurance covers or what they pay at the time of treatment). That’s not because patients are inherently delinquent, Brooks emphasized, it’s often because they’re either too confused about what they need to pay or they don’t believe that they were billed correctly.

    Reaching patients where they are

    With a virtual insurance card, Brooks believes, physicians would get a more seamless, reliable way of collecting payments and patients would get better information on how much health care costs. And, he added, it achieves the new “holy grail” of health care: greater patient engagement.

    “We’re taking this very simple concept as a starting point to engage patients,” Brooks said. “A challenge most companies have is they shoot really high in the adoption curve… we’d like to meet people at the most basic level where they are today.”

    The company, which is part of the new Dreamit Health startup accelerator, said the first version of its app is still a few months away. But the initial plan is a mobile app that enables patients to check in from their smartphones. Instead of handing over a physical card, patients would use the app to provide doctors with their insurance information and the app would automatically verify insurance eligibility for the provider. Medlio also intends to give patients an estimate of their treatment’s cost before they receive it, and it enables patients to initiate (and doctors to collect) payments directly through the app.

    As the system evolves, Brooks said, it could store and share medical information so that patients don’t need to fill out forms every time they visit the doctor and it could deliver appointment reminders.

    While they’re still working out the details of the business plan, he said, their goal is to keep it free for patients. Even if doctors don’t use the service, patients could use the app to store insurance and health information and potentially enter a doctor’s fax number to share medical information instead of filling out forms.

    Privacy and security issues could be challenges

    The idea is that, initially, physicians would pay for Medlio services and, ultimately, insurance companies eager to win the trust and attention of their members could also use Medlio to advertise and communicate with patients.

    Digital cards are slowly taking off for car insurance – in a few states, drivers can show their insurance with apps or pdfs. But health care obviously implicates a wider range of concerns. Consumers may be wary of the security and privacy consequences of storing and sharing medical and financial information in an app and providers may be reluctant to adopt a virtual card because of HIPAA issues.

    Personal.com gives consumers a secure way to store health insurance information and insurance companies are increasingly giving their members mobile apps for storing information and looking up claims. But the big difference between those apps and Medlio is that they don’t directly connect the patient to the provider.  Startup Simplee also aims to give patients more transparency into their health finances and it offers an app that lets patients pay from their phones, but while Simplee has started by targeting larger hospitals with its payment product, Medlio said it plans to start by targeting independent primary care physicians.

    Getting the attention of a critical mass of independent physicians could be a challenge for an upstart company. But Brooks said they believe that this is a big problem providers need to solve and, he added, because consumers can download and use the app on their own, they could help push doctors to the service.

    Image by Olga Danylenko via Shutterstock.

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  • Facebook meets WebMD: How Treato mines social data to uncover health insights

    On thousands of message boards, community forums and health sites across the web, patients and caregivers leave detailed descriptions of their battles with disease, their experiences with drugs and their paths to recovery. But those online notes don’t just provide catharsis and comfort. For big data startup Treato, they’re a rich source of data for uncovering health insights that could help patients, health care providers, pharmaceutical companies and other health organizations.

    Plenty of other social media monitoring tools “listen” to digital chatter by keyword to help companies track the sentiment of online conversations about their brand.  But Treato CEO Ido Hadari said his company goes further. Over four years and with $7.5 million in venture funding, Treato developed technology that collects and processes billions of natural language patient conversation in real-time, as well as qualifies the sources of those conversations.

    What Treato is doing is the next-generation of patient intelligence,” he said. “It’s about an in-depth understanding of patients and caregivers and their real-life personal experiences.”

    To start, it analyzes health-oriented web sites to make sure that they include quality health content and personal experiences. To date, Treato has qualified 2,000 sites, including Topix.com, Drugs.com and smaller condition-specific health sites. Interestingly, while it includes public posts from Facebook, Hadari said, Treato does not include comments on Twitter because they found that 90 percent of its data is spam.

    Once the company aggregates the commentary, it runs an analysis with its own medical ontology that organizes the unstructured social data into knowledge about patients’ personal experiences. To date, Hadari said, it’s analyzed 1.3 billion conversations from millions of patients about 11,000 drugs and 13,000 conditions.

    Since launching in 2011, the company has focused on patient comments related to drugs — on Treato.com, anyone can look up thousands of different medications to learn about side effects, effectiveness, whether patients switched to alternatives and more. And a service launched in October enables pharma companies to monitor patient responses to their products.

    Treato declined to share the number of clients that had signed on to the service but said, anecdotally, that its service has helped customers uncover the reasons behind a product’s poor adoption, uncover new uses for a medication and reposition a drug’s marketing plan. Treato could also serve as an early warning system for a drug with harmful side effects to a large population.

    With a new $14.5 million round of financing from OrbiMed Israel Partners, New Leaf Ventures and Reed Elsevier Ventures, announced this week  (see disclosure), Hadari said the company plans to build up a presence in the U.S. and expand its “Facebook meets WebMD” concept to unearth patient insights about broader medical conditions or clinical trials.

    It also plans to roll out a set of features that would let patients view a more personalized set of data. For example, instead of just seeing how thousands of patients have responded to a drug, a user could create a profile of their medical history and then filter data to see the results most relevant to his condition.

    As patients go online to seek out others experiencing similar conditions and symptoms, they’re leaving a valuable trail of data that could lead to advancements in care. Lucine Biotechnology, a Las Vegas-based startup, is attempting to improve women’s healthcare by drawing connections between social comments online and information gathered through salivary hormone monitoring. Alliance Health Networks uses algorithms to analyze conversations in its online communities to better understand how patients influence each other and enable pharma companies and clinicians understand how patients make medical decision.

    Disclosure: Reed Elsevier, an investor in Treato, is also an investor in GigaOM through its Reed Ventures arm.

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  • Pioneering ed tech accelerator ImagineK12 ups startup funding to $100k each

    As we’ve noted before, ed tech accelerators have been popping up all over in the past few months. But Imagine K12 — a two-year-old startup program often referred to as the “Y Combinator of ed tech” — just upped the ante for the competition.

    Instead of receiving $20,000 upon acceptance into ImagineK12, startups will now receive $100,000 each, thanks to a new Start Fund, the accelerator said. The newly-created Start Fund is funded by big name Silicon Valley types, including Y Combinator founder Paul Graham, Yahoo co-founder David Filo, Angela Filo, LinkedIn CEO Jeff Weiner and Chegg CEO Dan Rosensweig, as well as the NewSchools Venture Fund and GSV Asset Management. Startups will receive up to $20,000 from ImagineK12 and a convertible note for $80,000 from the Start Fund.

    Since launching in early 2011, the accelerator said its 39 startups have raised more than $30 million in funding and it claims that its products are used by more than 10 percent of U.S. teachers.

    Tim Brady, a co-founder of Imagine K12, said their goal is to not only give accepted ed tech startups a longer runway for adoption, but to make education more welcoming to entrepreneurs.

    “It has a reputation as a difficult sector,” he said. “One of our over-arching goals is to make entrepreneurship in education as attractive as it is in other sectors.”

    While $100,000 would certainly be difficult to turn down, other ed tech accelerators offering less capital aren’t without their selling points for aspiring education entrepreneurs. For obvious reasons, Silicon Valley is a great place to build a company, but education startups could also be well-served by building networks in other parts of the country.

    Socratic Labs and Kaplan’s new TechStars-powered ed tech accelerator, both of which are based in New York City, offer education entrepreneurs the chance to experiment within the country’s largest K-12 school district and in the backyard of major content companies. And Boston-based LearnLaunchX is in close proximity to plenty of publishers, colleges and universities.

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  • Health startup Greatist buys Sportaneous to stretch from content to tech

    Since launching two years ago, health startup Greatist has been all about content and its brand — every month, about 3 million unique visitors check out the site for a dose of content that’s part socially-savvy Buzzfeed, part fun fitness magazine and part highbrow science journal. But with the acquisition of startup Sportaneous, announced Tuesday, Greatist is expanding its identity from a company focused on content to one that builds technology.

    “We have not been technologists and now we can be,” said founder and CEO Derek Flanzreich. “Now we can figure out how to get people from not just reading and talking about our content to actually doing something about it — which is ultimately our whole purpose.”

    First launched a couple of years ago, Sportaneous is a small four-person startup that offers an app for finding fitness classes nearby. But like other recently acquired health startups MassiveHealth (sold to Jawbone) and 100Plus (sold to Practice Fusion), Flanzreich said Sportaneous was strong in design and technology, but was having trouble building traction.

    “It’s hard to get noticed in the App Store. It’s hard to get that attention unless you’ve got some other way to drive people to that product,” Flanzreich said. “We solved that problem [by going] the other way around and building the brand first.”

    With the Sportaneous team’s tech chops, Flanzreich said he plans to build a new product that puts a social layer around people’s fitness tracking activities. Now, Nike Fuelband users can socialize with other Fuelband users and Fitbit (see disclosure) users can communicate with other Fitbit users. But Flanzreich wants Greatist to provide a social hub that pulls in data from a range of tracking services so that people can motivate and encourage (and maybe trash talk…) friends using all kinds of devices.

    Another health app, Fitocracy, enables health enthusiasts to interact with others trying to achieve similar goals (for example, people trying to keep a paleo diet or run a marathon can encourage and get motivation from others in the same camp) and it integrates with running app Runkeeper. But Greatist, which has raised a little more than $1.1 million, wants to reach a broader audience of people and integrate with a wider range of tracking services.

    As part of the acqui-hire, Flanzreich said Sportaneous co-founder Omar Haroun will become Greatist’s chief product officer and co-founder Reuben Doetsch will be the chief technology officer. The other members of the team will join as developers.

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  • Raising your hand is so passé: Pearson buys real-time student feedback and polling startup

    Pearson  – the big kahuna of ed tech — has snapped up another startup. The company on Monday said it had purchased Learning Catalytics, a company founded at Harvard University by a trio of academics.

    Like services from Top Hat Monocle, Socrative and other student response systems, Learning Catalytics turns students’ laptops, smartphones and iPads into classroom engagement tools. K-12 teachers and college professors can use Learning Catalytics to ask students questions during class and gauge their mastery of the material.

    But Paul Corey, Pearson’s higher education president of science, business and technology, said a few key features distinguish Learning Catalytics: it enables teachers to ask all kinds of questions (not just multiple choice) and it gives teachers a quick graphical display of student responses.

    Also, it doesn’t just turn students’ otherwise distracting devices into productive tools, it can promote more offline interaction between students. For example, if an instructor asks students to plot an equation, it can immediately determine who got it right and wrong and then pair up students based on their mastery.

    “As things get more digital, how can [we] take advantage of physical proximity?” asked Corey. “This is a very powerful way to engage students effectively in the classroom.”

    Earlier this year, Pearson announced a partnership with Top Hat Monocle, including a discounted subscription to Top Hat Monocle with the purchase of Pearson products. Even though the company now owns similar technology, Corey said they plan to continue its deal.

    Pearson declined to share the financial details of its acquisition. But Corey said that while co-founders Gary King and Eric Mazur, both of whom are Harvard professors, will work with Pearson as consultants, co-founder Brian Lukoff will join the company full-time to continue building out Learning Catalytics.

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  • ‘Online Ivy’ Minerva Project launches genius grant-like prize for educators

    Much like the MacArthur Foundation’s genius grants recognize talented individuals for their creativity, a new prize from startup Minerva Project wants to honor educators for excellence and innovation in teaching.

    The San Francisco-based company, which last year grabbed headlines with a $25 million seed round for its plans to bring an Ivy League-level education online, on Monday announced a $500,000 prize that will go to one educator per year for making advancements in higher education.

    The point of the award is to help elevate the teaching profession and bring attention to people creating breakthrough learning experiences, the company said. That it will likely help the young startup build its brand certainly doesn’t hurt.

    In addition to announcing the new prize, the startup said Roger Kornberg, a Nobel Prize-winning chemist, would serve as the Governor of the Minerva Academy, an honorary institution that will include educational innovators from around the world.  The Academy will be responsible for selecting the winners of the new Minerva Prize.

    “Respect for teaching has declined over the years. Teachers were once one of the most esteemed members of the community and, in some way, their remuneration reflected that. But today that’s much less true,” said Kornberg. “The purpose of this prize [is] to enhance the public appreciation of people who today make a great sacrifice and devote their lives to this profession.”

    As student debt climbs and more question the value of a high-priced college education, startups of all kinds are emerging with different models for online education. In attempting to lure both top students and top professors who might otherwise gravitate to the country’s leading brick and mortar institutions, Minerva has an audacious vision.

    But beyond raising $25 million from Benchmark Capital, Minerva, which is led by founder and CEO Ben Nelson (the former CEO of Snapfish), has attracted the support of several high-profile leaders. Former Harvard president and Treasury Secretary Larry Summers is an advisor and former U.S. Senator and Governor Bob Kerrey (D-NB) leads Minerva’s Institute for Research and Scholarship.

    Image by Sergey Nivens via Shutterstock.

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  • College’s rejection of edX highlights potential drawbacks of massive online courses

    For the past year, massive open online course (MOOC) providers, like Coursera, edX and Udacity, have been riding high. Indeed, as of Coursera’s first birthday, which is today, the startup says more than 3 million students have enrolled in a course and 62 top universities from around the world have signed on as partners. The MIT and Harvard-backed edX and Udacity have also been growing steadily, announcing high-profile new partnerships and expanded programs for for-credit online classes.

    But this week, elite liberal arts college Amherst snubbed edX after months of courtship, highlighting concerns about how MOOCs could change higher education over the long term. The faculty wasn’t opposed to online education in general but approved a proposal for plotting its own path as opposed to joining edX, according to Inside Higher Ed.

    A few of the faculty’s concerns were Amherst-specific, the news outlet said. For example, some wondered if MOOCs, which by nature include tens of thousands of students, are inherently at odds with the college’s mission of encouraging education through small residential communities.  And others wondered how edX certificates bearing Amherst’s name would ultimately affect the school’s brand.

    But others had larger doubts about the future impact of MOOCs on higher education.  Citing an internal report on edX, Inside Higher Ed said the school worried MOOCs could:

    • Perpetuate an “information dispensing” model of teaching, which preferences lectures and exams over seminars and teacher-graded papers
    • Take tuition dollars from middle-tier and lower-tier schools
    • Lead to the centralization of higher education in the U.S.
    • Exacerbate the star faculty system

    Amherst’s decision follows a survey last month showing that while a majority of professors view the MOOC format favorably, less than a third of them believe students should be able to receive formal credit from their schools for successfully completing a MOOC. An earlier survey of university chief academic officers revealed a less glowing view of MOOCs – just a third of the respondents said they believe that their faculty accepts the value of online learning.

    While professors and institutions are beginning to realize the benefits of experimenting with digital content and online learning formats, Amherst’s move shows that they want flexibility in determining how to do it and that institutions are willing to consider different models. That’s good news for other startups and companies in the space. The three big MOOC providers have received considerable attention recently, but colleges have plenty of options for bringing learning online, including 2U, Instructure’s Canvas Network and startup NovoEd.

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  • What can we learn from patients? Ex-Googler debuts health social network to find out

    Patients typically learn from medical professionals, but a new startup wants to make it easier for patients to learn from themselves — and educate the rest of the industry in the process.

    Launched Thursday by Google’s former Chief Health Strategist Roni Zeiger, Smart Patients is an online community for cancer patients and caregivers that incorporates social networking and search technology.

    “Given how many tools are accessible to everyone and how even scientific information is being democratized, there is now an impressive number of smart patients out there [and] we haven’t really thought about how to collaborate with them.,” Zeiger told me at this week’s TEDMED conference. “What can we learn from them to help take care of them and others better?”

    While there are other online communities for patients, like PatientsLikeMe, as well as cancer-specific sites, Zeiger said Smart Patients differs in a couple of key ways.  For example, he said, given the important role clinical trials can play in a cancer patient’s treatment, the site includes a patient-friendly clinical trial search engine and it enables them to start conversations about those trials.

    Additionally, while most other health-focused social networks and web communities – as well as most things in health care – tend to be siloed by disease, Smart Patients enables patients to follow conversations across their specific cancer and other kinds of cancers. That’s important, Zeiger said, because topics like bone metastasis or certain kinds of drugs may matter to patients with different kinds of cancers.

    The free site will not include any advertising or marketing, but the company plans to conduct surveys and share anonymous patient insights with other health care companies, including biopharma companies, Zeiger said. For example, a current project with Oncosec Medical is working with a subset of the community to get patient feedback on how to design upcoming clinical trials of the biotech company’s skin cancer treatments.

    Earlier this year, PatientsLikeMe announced that it had received a grant from the Robert Wood Johnson Foundation to create an open research platform that enables patients to take part in the clinical research process. But, for the most part, patients don’t play a part in clinical trials until they’re already designed.

    For the past three months, Smart Patients has been in private beta with a few hundred patients but, to help build the network, it’s launching Thursday with partners including The Bonnie J. Addario Lung Cancer Foundation and the non-profit Cancer Commons. While Zeiger said he doesn’t think Smart Patients’ model will fit with every disease, he added that if their approach is successful, they’ll likely expand beyond cancer. He also said that while the company has been self-funded to date, it’s planning to raise a seed round in the near future.

    “Our core philosophy is to learn from patients,” Zeiger said. “And I think that’s going to help us build something really useful.”

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  • Tips from the trenches: 5 lessons for health tech entrepreneurs

    Entrepreneurs in any industry need to start with a big idea – and a big tolerance for risk. But in health care, startups often need to take on a unique set of regulatory hurdles, complex systems and entrenched ways of getting things done to successfully build and scale.

    At the TEDMED conference Thursday, a few of the industry’s most seasoned entrepreneurs and investors gave emerging startups a dose of advice. Here are a few of their tips:

    1. Let your experience inspire, but don’t just build for yourself.

    Several of the most interesting startups I’ve encountered were started by people who had their own collision with the health care system or were deeply affected by the experiences of people close to them.  But while personal experiences can inspire powerful solutions, Nina Nashif, founder and CEO of the Chicago-based health startup accelerator HealthBox, advised startups to make sure that they don’t skimp on doing their homework and talk to multiple stakeholders.

    “There are a lot of entrepreneurs that may have experienced their own situation or the situation of someone close to them. And they’re developing a solution for that without actually going out and talking to enough people to make sure they’re not solving the need for one institution… and that they’re building something that has the ability to scale,” she said. “You can’t just sit behind your computer and code in health care, you have to be out in the trenches.”

    2. Nuance over need.

    As with anything, the devil is in the details. Nashif also said that while healthcare has a lot of need and a lot of solutions, the startups with impact are those that figure out exactly where and how to apply their approach.

    “It’s important for entrepreneurs to understand the complexities of the industry and that’s not always easy because entrepreneurs and industry aren’t always speaking the same language,” she said. “Entrepreneurs really need to put their solutions in context.”

    3. Build to build, not to sell.

    Entrepreneur Michael Weintraub has sold or taken public six startups during his career (most recently, his health IT startup Humedica was acquired by UnitedHealth). But his big piece of advice was this: “I think the key to innovation is building something because you really want to build it not because you want to build to sell it.”

    But he also said that startups should get to know the top 10 companies that could be potential acquirers years in advance: “There are a lot of people working for you and counting on you to make the right decision. You’re not flipping the business to cash out, [you’re] putting it in a place that has greater leverage and impact potential,” he added.

    4. Ask yourself the hard questions.

    When it comes to figuring out the future of your company, it’s important to keep your feelings about your “baby” in check and think hard about the reality of the situation, said Castlight CEO and co-founder Giovanni Colella.

    “There’s a point in the life of the company [when] the entrepreneur has to ask himself and the management team the hard question: ‘Can we build the company to last or are we better off as a feature of a bigger product?’ You have to be really honest with yourself,” he said. And even before that point, he added, it’s critical to find investors and a management team that will hold you accountable and force you to think.

    5. Get some gray hair on your team.

    The general perception may be that startups are for hoodie-wearing early twenty-somethings. But in healthcare (and other fields), you’d do well to find some people with deep experience in the industry and some battle scars to show for it.

    “As you’re thinking about starting companies, if you’re young, put a little bit of gray hair into your team of people who have failed and people who are not afraid to say I screwed up… and these are some of the lessons learned, said Juan Enriquez, managing director at Excel Ventures and the founding director of the Harvard Business School Life Sciences Project.

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  • Kinsa launches a smartphone-connected thermometer to create a real-time health map

    If you want a real-time picture of the country’s health, you can check out Google Flu Trends or insights from social media. And if you want a more official perspective, you can turn to the Centers for Disease Control. But getting information that is both real-time and accurate is tricky business.

    That’s where Kinsa comes in. Launched Wednesday at the Demo Mobile and TEDMED conferences, the New York-based startup wants to create a real-time picture of the country’s health by using smartphones and simplified digital thermometers.

    “Today, I can know what my friend’s dog at for breakfast, but I have so little insight into the health situation around me,” said founder and CEO Inder Singh. “We’re creating… a real-time map of human health [to] keep families and neighborhoods healthy.”

    Building on technology developed by entrepreneur and investor Edo Segal and others, Kinsa developed a thermometer that plugs directly into a smartphone’s earphone jack. (Singh said they focused on the thermometer because a fever is often the first sign of illness.) Because it connects with a smartphone, it doesn’t include batteries, processors or an LCD, which means the device is cheaper and lighter than other digital thermometers.

    After downloading the Kinsa app, users can see their temperature on the smartphone screen, as well as log other symptoms and share the information with a doctor, family or a private group.

    Over time, as the thermometer gains traction, the company’s hope is that it can provide individuals, doctors, public health officials and health companies with better data on where and when illnesses are spreading, as well as inform next steps. For example, it could let individuals and doctors know about possible illnesses in the area. Or, it could enable pharmaceutical companies understand where and when their products might be most in demand.

    But even before the company amasses a critical volume of data, early adopters will already be able to use the app to track a child’s symptoms and then share them with the doctor or create a private group to share information and check the health status of others in the group. For example, Singh said, parents could create a group for a child’s class and anonymously view illnesses among classmates.

    Users who don’t want to join a private group can consult a map to view the “health weather” in their area, which is a report that combines data from Kinsa with public health data from other sources.  The app also includes features for calling a nurse with one tap and forecasting when you’re likely to be contagious and when you’ll likely recover.

    The startup, which has raised $2 million, expects the thermometer to become available later this year, after receiving FDA clearance.  Initially, the company plans to sell the thermometer at a price comparable to other digital thermometers ($15 – $20) but, as penetration grows, they plan to drop the price.

    To build buzz around the product, Kinsa also launched an Indiegogo campaign on Wednesday, with a goal of raising $75,000.

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  • Q&A: How Kaplan’s TechStars ed tech accelerator plans to get to the head of the class

    TechStars is a leader among general tech startup incubators, but can it work its magic in ed tech?

    Earlier this year, education giant Kaplan announced a new EdTech Accelerator powered by TechStars. But it’s hardly the only one. In the past few months, no less than five accelerators have launched offering ed tech entrepreneurs money, mentors and a faster track to growth.

    Don BurtonEarlier this month, the program announced that it had brought on Don Burton, a serial entrepreneur and investor with a deep background in for-profit education, to serve as the accelerator’s managing director. Ahead of the program’s first acceptance deadline, Burton chatted with me about opportunities and challenges for ed tech startups — and how Kaplan’s TechStars program believes it can rise above the competition.

    Here’s a (lightly edited) transcript of our conversation:

    GigaOM: Ed tech accelerators are popping up all over the place — why do you think now is an interesting time to be a part of one?

    Burton: We’re at the very beginning of major change. We’ve had big success stories, in the sense of online education, like University of Phoenix or Wireless Generation, which was sold to News Corp. But if you look at those opportunities, they’re really more automating the way we currently do education [like] a lot of the education technology that’s been here to date.

    What’s really exciting is now we’re thinking of new ways of imagining what learning can look like. Like the Maker Movement and the Quantified Self movement — I think those types of project-based, interest-based and passion-based experiences in the real world are what we can do with all of learning eventually.

    GigaOM: TechStars is a big name in the startup world and Kaplan is well-known in education, but with so much competition, how will your program distinguish itself?

    Burton: It’s becoming a very popular space so a lot of people are starting up accelerators, but if you think of it, they’re startups. TechStars has been doing this since 2006 and they have such a brand and platform, [including] the network, the mentors and the VC funders. It’s really tough to replicate that. And with Kaplan, we can get you customers [for testing products] right away – other startups won’t have such easy access.

    Maybe a lot of startups will get into accelerators because there are so many. But, potentially, we’ll be the graduate school of accelerators, so to speak. Maybe you started at one of the smaller accelerators and, once you’ve graduated and get some traction and are really ready to catapult yourself into a Series A, that’s when you might think now I can apply to the TechStars accelerator.

    GigaOM: So does that mean TechStars wants other accelerators to feed into it? Or that you’re looking for slightly more established ed tech startups?

    Burton: No, we definitely would take startups that don’t have any traction if we love the idea and we love the team. But let’s say you apply to the Kaplan TechStars accelerator and couldn’t get in early. Maybe you fall back to another accelerator and once you’ve proven yourself, have developed your concept more and have a little bit of traction then you come back to the Kaplan TechStars accelerator.

    [We’re casting] a very wide net. We’re trying to find the best ideas and the best teams but also [startups] that we think have the potential to be fundamentally disruptive. We want big impact, not another set of flash cards and exercises for kids to do math. [For example], can it engage kids in a much stronger way than traditional education has engaged kids? We’re looking for a broad spectrum – it could be cradle to grave.

    teacher classroomGigaOM: What are some areas of opportunity that haven’t been tapped yet?

    Burton: One is the scorecard by which we’re measuring learning. Instead of just a GPA or SAT or IQ score, who is the person that we’re looking at? You look at all the work in the positive psychology movement and Martin Seligman.

    They’re talking about the profiles of people’s character strengths [like] curiosity and love of learning and grittiness.  But we don’t really measure that that well. We don’t think about a person’s dispositions or personality but that makes a big difference for how they might want to learn. It’s the same with interest and knowledge areas [and] multiple intelligences. This is a bottleneck issue because in any system, you want to know what your kids are learning and the competencies they’re building. Having a smarter scorecard that can help us profile people in more individualistic ways is going to be really important.

    Digital portfolios is [another] big area. How do we represent our competencies as we move to a more competence-based system instead of just a credential or seat-time based system? We’re going to need to capture that in a more effective way.

    The last one is smarter pathways. Everyone talks about adaptive learning and personalization and how important that is. But if you look at what’s going on out there today, [it’s] just a scratch on the surface of personalization.

    GigaOM: Where do you think the innovation will start?

    Burton: [It] will probably come in the informal markets before it comes to the formal markets. There are some innovators in the school markets, for sure — the charter schools and other types of institution. If you look at the MIT Media Lab, that’s really innovative — [students] get to build their own robots or whatever they want to research, they get to build it and perform it, like the Maker movement. There are radical experiments in institutions, but those are almost like rogue departments. But can’t we see all of education looking much more like that?

    fundraising educationGigaOM: The industry is in the midst of an investment upswing, but what are the key challenges for entrepreneurs?

    Burton: One of the biggest challenges is simply creating change in the formal school systems that are not as market-driven as some other sectors. If you have the best solution, that does not guarantee you adoption in all the schools across all the systems. Even you have amazing success in some districts, how do you get that across the whole system? A lot of these districts across the country have very different ways of doing things and it’s tough to scale your opportunity. And policy — how does the government view technology and for-profit education?

    GigaOM: People are already talking about an ed tech bubble – are all these accelerators fueling it?

    Burton: It would be a bubble if no change happens, right? If none of this stuff starts to impact how we learn and how we develop. But if you think about where the education sector is [it’s] the second-largest sector in the world. If you think about the change that’s needed and the amount of change that’s needed, we haven’t even started yet. We’re not at a bubble but the very beginning of a new way of envisioning learning. Traction matters and you need to start seeing the impact and seeing tools being adopted, and I think we will see that. We need all of this attention and resources because we have a big issue with education. We need to put some great minds and some great money behind it.

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  • It’s not just about big data: here’s why small data matters to your health

    Big data may be a rising star in health care but small data can play a powerful role, too. At the TEDMED conference on Wednesday, Deborah Estrin, a computer science professor at New York City’s Cornell Tech, gave a compelling case for how your “digital exhaust,” including location data, searches and social media posts, could provide a valuable window into your wellbeing.

    “We’re continuously generating digital breadcrumbs from the services we interact with,” she said. But “there are no existing vehicles that package that data about me in a format that’s useful for me and that make it accessible to me. [And] there should be because there’s a lot that I can learn about my personal health from my digital behavior.”

    Search engines, social networks and mobile carriers capture and analyze that data to serve up advertising, improve services and provide personalization. But delivered to the user, Estrin said, that data could generate a “digital social pulse” for tracking health in more implicit ways than Fitbits (see disclosure), Nike Fuelbands and other quantified self-type devices.

    For example, she said, an app could process data from a mobile carrier to determine whether new supplements for early-stage arthritis are actually helping a patient. If the patient is checking her phone earlier in the morning and moving around more frequently, that could indicate that the medicine its doing its job.

    Service providers may balk at the prospect of releasing their troves of user activity data – and Estrin acknowledged that they would likely worry about PR headaches and privacy issues. But not only should enhanced transparency provide the foundation for a strong privacy policy, she argued that access to their data would make smartphones and data services even more valuable to customers.

    Startups like Personal and the Locker Project have started building tools that help people manage and use their personal information. And Ginger.io uses sensor data from mobile phones and other devices to identify signals of behavior change to understand users’ mental and physical health.

    But Estrin wants to encourage an entire ecosystem of apps. And, along with colleagues at the mobile health non-profit OpenM Health and Cornell Tech, she’s beginning to build prototypes that demonstrate the benefits of using small data for personal health, as well as create the architecture for service providers, app developers and others to create additional small data health apps and algorithms. (You can learn more about Cornell’s small data initiative here.)

    “We need an open architecture, so that a rich market of apps and services can grow up around that data just like http created the World Wide Web and led to the rich array of internet services,” she said.

    Image by Digital Storm via Shutterstock.

    Disclosure: Fitbit is backed by True Ventures, a venture capital firm that is an investor in the parent company of this blog, Giga Omni Media. Om Malik, founder of Giga Omni Media, is also a venture partner at True.

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  • How crowds, not doctors or supercomputers, could diagnose rare diseases

    When it comes to serious medical conditions, you probably want a doctor – or at least a medically-trained supercomputer – delivering your diagnosis. But CrowdMed, a startup launched in public beta at TEDMED on Tuesday, is showing that the collective intelligence of the crowd can be just as good at getting to the bottom of medical mysteries.

    For patients hoping to uncover the causes behind frustrating or painful symptoms, doctors and specialists have long been the most trusted resources.  Supercomputer Watson, predictive modeling techniques and other kinds of artificial intelligence are increasingly revealing their diagnostic power.  But CrowdMed co-founder Jared Heyman believes there’s a third option that’s not getting the attention it deserves.

    “I think a crowd can combine the best aspects of an individual expert with the best aspects of an artificial intelligence solution,” he told me. Crowds can blend an individual’s sense of intuition and judgment with a computer’s ability to process large amounts of information, Heyman added.

    On CrowdMed, users can choose to “submit a case” or “solve a case.” To submit a case, patients describe their situation, including their symptoms, medical history, family history and other reports. “Medical detectives,” who want to try to solve the case, share their thoughts on potential causes and then place bets on the diagnosis they think is correct.

    Before launching CrowdMed, Heyman founded InfoSurv, a market research company that uses predictive market technology. Building on that idea, CrowdMed analyzes the feedback from the crowd to generate diagnostic suggestions.

    Patients seeking a diagnosis pay $199, as well as a $20 deposit, which is refunded when patients provide their final correct diagnosis. Detectives are rewarded with cash, prizes and status on an internal leaderboard, so they’re incentivized to participate only when they really believe they can productively contribute, Heyman said.  In 20 test cases on Crowdmed, he added, the site’s detectives came up with the correct diagnosis every time.

    Heyman said the idea for CrowdMed came from his sister’s recent three-year quest to understand an undiagnosed condition.  After visiting more than a dozen doctors and accumulating more than $100,000 in medical bills, she was finally diagnosed with a very rare disease. In a test, CrowdMed came to the same conclusion in a matter of days and at a fraction of the cost.

    In addition to opening up to the public, CrowdMed disclosed that had raised $1.1 million from investors including New Enterprsise Associates, Andresseen Horowitz, Greylock Partners, Y Combinator and SV Angel.

    While the company plans to expand and build out its product, Heyman said the funding is largely intended to give the company some runway.

    “For the company to take off, it will take nothing short of a cultural shift for people to recognize the vast wisdom of crowds. It’s not about individual experts, it’s about intellectually diverse teams collaborating to solve a problem,” said Heyman. “And I don’t know how long it will take for that notion to become accepted wisdom.”

    Image by cifotart via Shutterstock. 

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  • The Data Doc: Meet the MD who wants to bring custom healthcare to the masses

    Here’s a phrase I’ve never heard during a doctor’s visit: “We need your data, girl!”

    I was at MDRevolution’s La Jolla, Calif., office about a month ago, sitting in on a consultation as a patient huffed away on a treadmill. A staff member hovered nearby, monitoring the patient’s heart rate and pushing her to keep up the pace. As the staff member took note after note on the patient’s performance and tapped away at a calculator and keyboard to analyze the results, I felt like I was in a research lab, not a doctor’s office — and a lab modeled after a gleaming Apple store.

    According to its founder, cardiologist Samir Damani, that’s the point. The office — with its sleek, spa-like aesthetic and shelves of connected devices — is a showcase for a data-driven future of medicine that puts technology at the center of the patient experience and moves actual doctors into managerial, less visible roles.

    Damani_6097

    As the era of the more-affordable “$1,000 genome” draws closer, the phrase “personalized medicine” is popping up all over the place. But for the most part, matching medical treatments with a patient’s genetic profile is an option for only the wealthiest Americans.

    With his patients, Damani is trying to create customized health care that is more accessible and affordable — and he’s doing it by blending cardiology, nutrition science and genetics with emerging mobile technology. But that’s just the first step: He believes he can build a big business by using the data he’s gathering and the algorithms he’s creating to design software that will allow employers and hospitals around the country to replicate his approach.

    “I got tired of people saying this is what it’s going to be like. I said, ‘I’m a 37-year-old cardiologist, I need to know what it’s going to be like today,’” said Damani, a slight, well-dressed man with a seemingly boundless memory for medical literature.

    So, in 2011, he rustled up $1.6 million in angel funding from several local MDs, Ph.Ds and other supporters (no traditional “vulture capitalists” allowed). He hired an IT guy, an office manager, a metabolic specialist, nutritionist and medical assistant and, about a year later, opened up his doors — all while keeping an active cardiology practice at a local San Diego clinic.

    A new medical specialty?

    Since launching in February 2012, MDRevolution has worked with about 250 patients; about a quarter of them have a chronic condition, and the balance are people who are generally in good health and who are willing to take that extra step to stay that way (patients continue to see their regular primary care doctor in addition to Damani). He says that each of the last 60 patients has seen statistically significant changes in every health marker analyzed, including weight, body mass index, metabolism and visceral fat (the notoriously hard-to-lose fat that accumulates around organs).

    Damani_5981

    Damani’s model? A new patient starts with a spin through a lab to determine their resting metabolic rates, visceral fat levels and other fitness indicators. They also get a genetic assessment that tells MDRevolution whether they’re a slow processor of caffeine, whether they’re genetically inclined to overeat, and whether they have any other nutrition and fitness-related predispositions. From there, the practice uses proprietary algorithms to craft personalized health plans that include guidance on things like how high and how often to push their heart rates while exercising, what kinds of food to eat, and the types of foods to avoid.

    As patients follow the program, fitness trackers like Fitbits (see disclosure), wireless Withings scales and heart monitors report progress back to MDRevolution, while a website enables specialists to give encouragement and direction online.  For the genetic assessments, the company partners with Pathway Genomics and 23andMe, and it uses Qualcomm’s 2Net platform to integrate all of its technology. For the 10 percent of patients who live outside the area (and even for some who live close by), Damani conducts virtual visits via Skype.

    The financial model

    Just about every week, a new activity tracker, personal genome service, iPhone-based medical device or online patient program hits the market. But for the most part, those tools and services exist in isolation. MDRevolution is a first stab at trying to show how mobile health tracking tools, genomic assessments and personalized coaching can work together to show real results.

    The fact that the company is based in sunny Southern California is no accident. Between wireless health leader Qualcomm Life, genetics company Pathway Genomics, The Scripps Research Institute and plenty of other National Institutes of Health-funded research institution, San Diego is a hotbed for health innovation and research. Scripps is also the academic home of Eric Topol, a longtime cardiologist and researcher as well as one of the most influential voices in digital health. Before launching MDRevolution, Damani published several peer-reviewed articles with Topol, who he said has been a mentor.

    As health reform pushes medicine to a model that rewards doctors based on how well they keep patients healthy, not just the procedures they perform, more doctors are turning to concierge-style practices in which patients pay an annual retainer for a higher level of care. One Medical Group, which has offices in five cities, lets patients book appointments online and renew prescriptions as well as email with doctors. CarenaMD, in Seattle, offers patients 24/7 virtual doctor visits via webcam.

    MDRevolution says its model is closer to a gym membership. Patients pay between $25 and $75 per month (depending on the level of service and attention needed) for access to the clinical lab and personnel, as well as its web-based service. The practice also takes most insurance plans, so each time patients visit the office, they’re also charged a co-pay.

    Brad Lally, a 46-year-old San Diego executive with an outdoor sports company, said he decided to see Damani in 2011 after a brief episode of cardiac arrhythmia. He wanted to try treating his heart condition without drugs, and also wanted to get rid of his belly fat. In addition to putting more proteins and vegetables in his diet, MDRevolution told him to do metabolic interval training workouts twice a week to push his heart rate into the anaerobic zone. Since genetic testing revealed that he was a slow caffeine metabolizer, Damani’s team told him to stay away from evening cups of coffee.

    For the next 12 months, he reported his workouts and diet to MDRevolution — even on frequent overseas business trips his blood pressure cuff sent back data — and received nearly bi-weekly feedback from staff. After three months on the program, he says he lost 10 percent of his visceral fat and increased his resting metabolic rate and VO2 level — two measures that Damani believes are more predictive of heart health than cholesterol — by more than 10 percent. It’s been a year since he finished the program, and he said he hasn’t had any heart irregularities. Even when he slips, he said, he knows how to quickly correct his diet and exercise plan.

    “It’s empowering to know what’s going on,” Lally said. “And the level of interaction you get — it’s really good. It’s nothing like what you get with your regular primary care doctor because they’re so busy seeing patients.”

    The real ‘billion-dollar’ business

    As MDRevolution tries to help patients reach new levels of fitness and heart health, it is building a robust data set to support what Damani said could be the company’s real ‘billion-dollar’ business idea: a patient-engagement platform.

    RevUpRevUp, which MDRevolution uses internally for its 250 patients, is a web-based dashboard that aggregates all of a patient’s information, from fitness trackers and other devices to genetic and other health data. It provides each patient with a personalized health plan, including custom fitness and nutrition guidelines depending on their needs and goals. Physicians and other health experts can use it to track patient progress and send updates and guidance. Corporate and health system administrators are able to see what employees are doing in aggregate but not an individuals’ specific information.

    According to a recent study from human resources company Aon Hewitt, the average employer spends about 40 percent more on health care now than it did six years ago. Another report found that poor health costs the U.S. economy $576 billion annually, with nearly 40 percent of that due to employee absenteeism or low productivity.

    To address those issues, companies like Keas, Healthrageous and ShapeUp pitch employers on corporate wellness programs that integrate with digital devices to keep employees active, healthy and out of the doctor’s office. Damani argues that RevUp will have an edge in this market because its program is backed by clinical results.

    He says the data that he’s compiling with just 250 patients is already leading to fresh insights. For example, he said, people can increase their heart and lung capacity independent of age, and women increase oxygen consumption (an indicator of fitness) slower than men. When the company reaches 1,000 patients, he believes, their research could be used to influence public debate about how to maintain health in the population at large.

    “Our competitive advantage is that we have a lab driving the software. We’re always going to be creating software based on needs for the practice and outcomes,” Damani says. He says that while other corporate wellness programs tend to only focus on basic health markers like cholesterol and body mass index, the indicators underpinning his program (resting metabolic rates, visceral fat levels and oxygen consumption) will prove to be the key to preventative medicine.

    Can MDRevolution compete against tech companies?

    The ultimate plan is for the dashboard to serve as a vehicle for gathering even more data, he said; creating a repository that could be a licensable asset in itself. It could also inform the development of future products or make MDRevolution a valuable partner for companies developing medical devices or conducting clinical trials, he said.

    With a doctorate, a master’s degree and a medical degree, Damani is clearly not one to shy away from a new challenge. But in turning MDRevolution into a technology company, he’s moving into an uncertain and increasingly competitive terrain. While Damani has led the company so far — he said it has already signed up four corporate customers, a mix of companies and hospital systems, and should be profitable by next year — running a doctor’s office arguably requires a different kind of skill set than building a technology company. The company now employs 15 people, but only the COO, CTO and a new database manager have technical backgrounds. Six contractors work full-time on its software development, and Damani said he plans to bring several programmers in-house in the next year.

    Damani may find that the market for his data isn’t what he anticipated. Abhas Gupta, a partner at venture firm Mohr Davidow Partners who focuses on digital health, said that he’s seen promising health startups that have amassed strong and unique datasets but that haven’t been able to generate revenue like they expected. “Who do you sell that data to?” he asked. “There may not be individuals ready to do something with that data.”

    The new role for doctors in a tech-driven world

    One thing patients at MDRevolution don’t see much of is a doctor. The practice is still small enough that patients know Damani oversees the entire operation but he has delegated much of the day-to-day interacting to patients to metabolic experts and nurse practitioners. Even though the office sees patients five days a week, his face time with them is just five to eight hours weekly. He says MDRevolutions in other locations could operate with barely any doctor oversight at all. (To bill as a doctor’s office, they will need to be led by doctor, but day-to-day operations could be entirely run by a nurse practitioner, he said.)

    It makes you wonder if Vinod Khosla’s controversial prediction that technology will replace 80 percent of medical experts is coming true. Damani said his vision isn’t one that minimizes doctors (although the impending doctor shortage means the country will have to make do with fewer doctors, relatively speaking) or one where doctors play CEO and tech entrepreneur. But it is a world where physicians will have to adapt.

    “Physicians are going to have to be in a management role as opposed to being the primary person seeing [patients],” he said. “Most physicians out there are unhappy. Because cost-containment pressures are so great, they’ve become assembly-line type physicians who see as many patients as possible in as little time as possible. I want to offer those doctors a new process.”

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  • Steve Case-backed Echo360 buys ThinkBinder to bring more social learning to higher ed

    In its second acquisition since scoring a $31 million round from Steve Case’s Revolution Growth Fund, education technology company Echo360 has picked up New York-based startup ThinkBinder.

    On Tuesday, the Dulles, Va.-based company, which makes software that helps colleges bring their classroom lectures online, said it plans to integrate ThinkBinder’s peer-to-peer communications tools with its service and transition the startup’s 4-person team into roles in product expansion.  The company declined to share financial terms for the deal.

    “ThinkBinder’s social collaboration tools offered [us] an opportunity to compliment a modern student’s 24/7 digitally connected lifestyle,” said Echo360 CEO Fred Singer.  “By empowering students to engage, share and solve problems in an on-demand environment, we’re able to stretch learning beyond traditional classes and improve academic outcomes by encouraging peer to peer interaction at all hours.”

    Since launching about a year ago, ThinkBinder has been in beta. But, during that time, co-founder Greg Golkin said it was able to attract tens of thousands of users with a simple web app that enables students to organize and conduct group work online. Students can sign up for free and then easily invite peers via email and Facebook to share a group calendar, exchange files and multi-media content, organize tasks and chat.

    “We think of engagement outside the classroom as this next frontier in education. Historically, you interact with teachers and students in the classroom and then the day ends and you go off and do your own thing,” said Golkin, who will become Echo360’s head of platform innovation. “If you can keep the student thinking about content outside the course that has been shown to [improve] outcomes. We wanted to create a way for students to collaborate with each other and teachers out of the classroom.”

    When Echo360 announced its investment from Revolution last year, the company said its goal was to expand from 5,000 classrooms to 30,000 by 2017. So far, it says it’s reached 6,000 classrooms in 30 countries. But as it competes with other higher ed-focused companies, including BlackBoard and Desire2Learn, which also offer colleges and universities tools for digitizing content and enabling online collaboration, Echo360 wants to ramp up its social product set.

    In November, the company said it acquired Lecture Tools, a startup founded by a University of Michigan professor that solicits real-time feedback from students and increases in-classroom engagement.

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  • With new partner, VC firm Aberdare goes all in on digital health

    Venture capital firm Aberdare is evolving with the times. In response to technology, policy and demographic trends that are reshaping the healthcare industry, the group on Tuesday said it is refining its investment thesis.

    To support its growing emphasis on “transformational health investing,” the firm also said it had hired a new partner Mohit Kaushal, an MD and MBA, who previously led investments at West Health and served as director of connected health at the Federal Communications Commission.

    “The old mantra was very much around improved outcomes as a thesis and then premium pricing on top of that, whether it’s a drug or a device. Aberdare came to the conclusion, from a very bottoms up approach, that the world is changing and that this was not a viable thesis any more,” said Kaushal. “The efficiency angle is just way more important these days.”

    Given the rising cost of healthcare and the growing elderly population, as well as shifts in the technology and policy landscape, big changes in the way health care is delivered and regulated are on the horizon. While outcomes are still critical, Kaushal says it’s become increasingly important to encourage cost-effective health care systems.

    With an investment portfolio that includes wearable electronics startup MC10, online diabetes prevention program Omada Health and health startup accelerator Rock Health, Aberdare is already a leader in the emerging world of digital health. But Kaushal said the firm will focus even more closely on three areas in healthcare: personalized medicine (including diagnostics and genomics), smart sensors and health care IT.

    As various reports have shown, venture capital interest in life sciences companies is on the decline. Some firms like Aberdare and Venrock, which historically invested in more traditional pharmaceutical and device companies, were early supporters of startups that bring newer digital technologies to healthcare.  But others have been slower to shift their focus. Going forward, it will be interesting to see how the rest of the industry shakes out.

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