(1/5) 🧵Recently,
@vijaypande
and I received an email about a healthcare panel on integrating AI with fax machines in healthcare.
We had to laugh.
Shouldn’t healthcare just get with the times and stop using fax machines?
1/ In the past few months, the founders of Instacart, Spotify, and Coinbase have all started new healthcare companies. This may seem odd to some – why are these seasoned tech founders jumping into tech-driven healthcare? A 🧵:
(1/7)
@vijaypande
and I have a 🔥hot take🔥 heading into
#HLTH2022
: the biggest company in the world will be a consumer health tech company.
Read our personal opinions here (compliance made me say that 😉):
Our next
@a16z
healthcare playbook focuses on selling into SMBs – clinics, employers, and digital health cos. If your startups does this, we'd love to hear your perspective and potentially feature you in our piece! Just fill this quick survey out:
1/ As a lover of regulated industries (or glutton for punishment) who went to law school “for fun,” I can’t help but get excited about the intersection of the two biggest regulated markets: healthcare ⛑ & fintech 💳
(1/9) Our newest
@a16z
piece on the 🏆 biggest prize 🏆 yet to be claimed in healthcare x fintech.
Consider this: most healthcare providers are flying blind when it comes to their finances. A 🧵:
1/ Last month,
@vijaypande
and I predicted a consumer health company will be the biggest company in the world (‼️). This invoked lots of **feelings** 🤯. This month,
@julesyoo
and I dive into specific areas of consumer health where we see opportunity. A 🧵:
New year, new fund, new name! We’re now officially the “a16z Bio + Health” fund 🧪⚕️⛑. Here are a few of the many areas we’re pumped to invest in on the health side this year. A 🧵:
(1/8) Today, we
@a16z
are proud to share that we've led a $4M round of seed funding for Fortuna Health, a consumer-first platform for navigating Medicaid end-to-end.
1/ Last week
@a16z
released our Marketplace 100 list. Only 4 healthcare companies made the list (a record!)...but healthcare is 12% of household spend.
Interestingly, all 4 are therapy marketplaces. Why are they working and where else can we build big health marketplaces? A🧵:
📣 Calling all consumer health builders! 📣 We
@a16z
are planning events – fireside chats, dinners, & more – to bring together experts & smart folks in the space. Some virtual & some in person (NYC & SF to start). Interested in joining? Fill out this form!
1/ Are you a healthcare startup that sells into (1) individual practices, (2) SMB employers, or (3) digital health companies? Check out our latest
@a16z
go-to-market playbook on selling to SMBs. A 🧵:
(1/3) A few weeks ago, when the world felt a little less scary, I had the honor of speaking at
@jpmorgan
's 8th annual Leadership Day.
Still pinching myself bc I got to share the stage w/
@naomiosaka
,
@Malala
& Jamie Dimon!
(1/9) We're excited to announce
@a16z
's Series A investment in
@MarkerLearning
, which is proving affordable and accessible learning disability assessments & support to schools and families✏️📒. Here’s why this is important ⬇️
(1/8) We at
@a16z
are thrilled to announce our Seed and Series A investment in
@pomelocare
, which is building a tech-enabled, value-based model for maternal and neonatal care.
We
@a16z
are so excited about the healthcare x fintech opportunity that we created a whole website for it. Learn more about our existing portfolio in the space and the areas where we’re actively looking to invest 👇
Thrilled to announce our investment in the food-as-medicine platform Season Health! It’s no secret that the food we eat affects our health. But for far too long, food & nutrition have been disconnected from healthcare. 🍓🍳🥑
A break from regularly scheduled healthcare content for a video of my *all-time* greatest athletic achievement (the bar is low): bowling a strike at the White House bowling alley 💁♀️🎳
(1) Curious about how trends in regulation might affect health startups?
Check out my interview with the coolest telehealth lawyer Sarah Thomas, GC of Sameday Health & former Counsel @ Favor & Smile Direct Club
A 🧵w/ takeaways & predictions from Sarah:
Fun evening interviewing
@flahertyiv
, SVP of Growth
@Ro
, about how to build great companies in consumer health! The NYC healthtech ecosystem is on 🔥. Thank you to
@ribbonhealthAPI
for hosting and to all those who came to listen🗽
(1/n) Great new
@a16z
podcast featuring
@vijaypande
and
@Tocelot
on the intersection of health x gaming. Here’s what I’m pondering after listening and discussing the topic with
@vijaypande
:
Fun evening hanging with the people doing all the work behind the scenes in healthtech, chiefs of staff! Thanks for leading an excellent conversation
@thebettychang
and for organizing with
@ribaroff
&
@sk_leung
.
Had a great time discussing the state of women's health investing at the New York Stock Exchange. Thank you to
@jjfeds
for organizing this lively summit!
@nyse
We're looking for entrepreneurs innovating at the intersection of Fintech x Healthcare.
@dhaber
and
@julesyoo
lay out three themes we find interesting. Building in this space? Our DMs are open.
.
@julesyoo
and I are very excited about the intersection of Fintech x Healthcare: "As fintech makes its way into healthcare services and software, we see the potential to rewire incentives and remove inefficiencies to pave the way for a more value-oriented healthcare system."
Interested in where there is opportunity for AI in enterprise healthcare? Check out our latest piece, in which
@JayRughani
,
@julesyoo
,
@vijaypande
and I dive into promising areas 👇
(1/7) Over the past half century, Wall Street was completely revolutionized by computers.
Not so long ago, human brokers on the stock exchange floor haggled to buy and sell every stock, writing their agreements on pieces of paper. A 🧵:
1/ “Solving consumer engagement is worth $1T to our org,” a health plan exec once said to me. While sensationalist, it’s a common trope that much of healthcare's problems stem from the system's inability to engage patients cost-effectively and at scale.
Medical debt really sucks!!! And 50% of Americans have it.
@MAndrusko1
and I are both shy on the internet, but wrote about this topic b/c we
@a16z
believe regulatory tailwinds make now the perfect time to innovate in medical debt resolution.
1/Medical debt is a massive market. Half of Americans carry medical debt, and btwn debt sitting with collectors ($140B), on card balances, and in unpaid medical bills, Americans owe $1T for healthcare services they've already received.
Games can be a force for good & improve human health.
We're super interested in games that promote physical and mental health.
Plus, I love spending time with our
@a16zGames
team.
Read more 👇
Normies think games are toxic for society. But we believe games are actually the key to solving many consumer/population health problems.
Why I'm excited for games x healthcare, and why you should apply for SPEEDRUN if you're building in this space🧵
We're excited to announce our new
@a16z
funds! If you're building a healthcare company (or even just thinking about it), my DMs are open. There has never been a better time!
Do you work in healthcare but still find drug pricing and the pharma value chain very confusing🤔? You're not alone! Check out this
@a16z
pod in which
@julesyoo
and
@OliviaWebbC
interview
@DrugChannels
. It's the clearest explanation I've heard of how things work!
1/ For the coolwonks who follow ,👂to this pod w/the one and only Adam Fein on financial incentives + market distortions of the pharma value chain, which I've been fascinated w/since being acquired into a PBM in a prior startup life:
1/8 “Equal means everybody gets the same. Equity means everybody gets what THEY need." - Bernard Tyson (fmr CEO/Chairman, Kaiser Permanente)
We're proud to back
@waymark_care
, a new platform to scale personalized, community-based care for Medicaid pts:
(1/2) Have you ever woken up with a sore throat, googled your symptoms, and eventually diagnosed yourself with a rare form of cancer on WedMD?
If so, you’re not alone. In fact, you’re just like everybody else.
6/ The U.S.’s largest industry – 1/5 of the American economy – is unspeakably broken. The United States severely lags behind other developed nations in terms of health outcomes and cost. Hundreds of thousands of people die each year because of avoidable human errors.
8/ The most impactful companies are built at the frontier, and healthcare is the next frontier. It’s time to put our tech skills to work. The mother of all markets is ripe for disruption.
With 2023 on the horizon, a16z asked our partners: What ONE big idea do you expect tech to tackle in the coming year?
From small modular reactors to having fun with AI applications, their answers tell us a lot about what's likely to come in tech. 👇
Are you a healthcare biz model nerd? Get a kick out of Health Affairs articles and digital health 10-Ks? Psyched about the future of virtual-first value-based care? Come be a Healthcare Deal Analyst on Team
@a16z
bio+health
(5/7) The first is a vertically integrated path of building a “payvidor” (a combined payor and provider) that eventually owns most care. Imagine UnitedHealth Group⚕️ but with the UX of Apple🍎 – who wouldn’t choose this insurance plan and provider!?
2/ Healthcare is 1/5th of U.S. GDP, but most wildly successful fintech companies haven’t made a dent in the market. For a number of reasons, healthcare needs dedicated fintech solutions, and the opportunity is massive. 🤑
That joyous feeling when good things happen to good people.
@sarahdingwang
is brilliant, extraordinarily kind and giving, and so very deserving of this promotion. Made my Monday.
Some very exciting
@a16z
news today. I’m thrilled to announce that we’ve promoted
@sarahdingwang
to General Partner for the Growth Fund. More below on why…and welcome Sarah to this new role, I’m proud to call you my partner!
a16z's
@julesyoo
told me health care funding rounds might be getting bigger, but infrastructure, regulatory burden and clinical rigor are not cheap.
"This is not a space where you can cobble something together, throw it over the fence and hope it works."
Science needs better Software.
The good news: waves of talented builders are jumping in to help, enabling biotech to further accelerate how drugs are Discovered + Developed + Distributed.
@JorgeCondeBio
& I "sketch out" Biotech’s Tech moment:
(6/7) The second is a horizontal path of building a consumer marketplace or infrastructure layer that enables all other care delivery companies. Imagine the Amazon📦or Visa💳 of healthcare.
(3/3) In it, we cover (1) how Kurt transitioned into healthcare (& why you should too!), (2) the future of consumer and provider fintech experiences in healthcare, and (3) what types of startups Optum is looking to partner with. Check it out 👇
Awesome thread & blog post by
@anneleeskates
on opportunities in the Learning Economy ⬇️ Reminds me that many parallels exist between edtech & healthtech because of third-party payors (school funding & health insurance) 🎒🧑🎓💊⚕️
Over the past decade, $20B has been invested into US edtech, yet only 3 companies have gone public:
@Coursera
,
@Duolingo
,
@Udemy
. Many have written off the space.
🔥take: we are entering the decade of the “Learning Economy,” which spans way beyond traditional education. More🔽
In honor of elections in the US, we sat down for a special policy-themed episode of Bio Eats World with Bobby Franklin, president and CEO of
@nvca
.
We chatted about how healthcare policymaking can be bipartisan, and how startups and DC can collaborate:
"You’d be hard-pressed to find many who think we’d be better off without electricity or cars. In 30 years, we’ll think the same about A.I.," writes
@vijaypande
.
2/ In 2013,
@pmarca
observed that the biggest, most successful companies have all done something that seemed completely “crazy” at the time of creation.
1/ Building a digital health startup? Sharing common pitfalls I’ve seen early-stage startups make & advice for founders on how to avoid them.
Advice comes from seeing the highs 📈& lows📉 of 100+ startups that I’ve gotten to know (including my own).
How do you know if a social app will be a "hit?"
Predicting what goes mainstream - and what stalls out - might seem random.
But after years of leading growth
@Snap
& investing in consumer social at
@a16z
, I've found early signs of huge products 👇
LAST DAY to secure the best possible price for the 2023 Behavioral Health Tech conference! Join us with leading venture capital investors like
@daisydwolf
, Partner at
@a16z
, to discuss the state funding and innovation in mental health and substance use:
4/ But what sounds crazy in 2023? Certainly not another meal delivery service, recruiting tool, or dating app. More broadly, we all agree that mobile, internet, the cloud, and SaaS are consensus and mainstream.
(2/7) This may sound crazy 🤯 to some, but why shouldn’t this be true? Four of the top five biggest companies in the world are consumer companies and healthcare is one of the nation’s biggest industries.
@paulkeckley
and I talked health policy "greatest hits", hospital system survival playbooks, employers disrupting insurance, the next era of Medicare Advantage, and more...
@a16zBioHealth
@OliviaWebbC
(2/3) In our latest
@a16z
podcast on healthcare x fintech,
@mandrusko
and I interview Kurt Adams, CEO of Optum Financial, about the $100B revenue opportunity that UnitedHealth sees in healthcare x fintech.
What are two-sided network businesses in healthcare? How do they connect patients, providers, payors, & pharma? And when is this the right biz model for you?
@JayRughani
and I had a blast speaking w/ founders who successfully navigated this complex GTM strategy
Check it out! 👇
(3/7)Much larger, in fact, than the size of the *global* advertising industry in which consumer giants like Google and Meta operate. From that standpoint, the
#1
slot *should* belong to a consumer health company.
(2/n) Engagement in healthcare sucks, and is probably the industry’s biggest problem. Therefore diverse areas of healthcare ranging from mental health to weight loss can all benefit from gamification. It’s clear healthcare could learn a lot from the gaming world!
3/ The examples from the last two decades are clear. Sleeping in a stranger’s home? Airbnb. Getting in a stranger’s car? Lyft. Putting a personal computer in everyone’s home, and then in everyone’s pocket, and then on everyone’s wrist? Apple.
We are entering a new era of human health, powered by a revolution in biological engineering.
@vijaypande
and
@JorgeCondeBio
share with
@endpts
their journeys, perspectives, and why they believe that biology is eating the world.
(7/9) This would be a real-time, action-oriented engine that ingests financial data from the EHR, RCM, banking & credit products, and payroll to become the financial system of record for practices.
(5/n) Ideally, founding teams would have expertise in both health and gaming. This is currently a rarity, but we’re one of the few firms with teams dedicated to both, and we’d love to connect builders in these two words.
Digital health tech stack: everyday it becomes easier to start a healthcare company. We believe this is a great benefit to society and we’re investing heavily in companies that enable this future. 💪
How can you better connect our healthcare system through software?
One increasingly promising way is to take a multi-sided network strategy.
@vintweeta
& I explore *how* with 5 iconic founders in this episode of GTM in digital health by the
@a16z
team:
4/ We think now is the perfect time to build fintech for healthcare. Whether you’re a fintech builder still learning the language of healthcare or a healthtech nerd already,
@dhaber
,
@julesyoo
,
@mandrusko1
and I would love to connect with you. Our DMs are open! 💪
3/ In our first
@a16z
blog post on subject matter, we explore the opportunities in healthcare fintech through the lens of unbundling the world’s largest healthcare companies. 🏥
(2/8) In the U.S., low-income adults, children, pregnant women, and people with disabilities are entitled to free health insurance through Medicaid. Medicaid is the lifeblood of America: the program covers slightly under half of births in this country.
(2/9) Once a medical provider treats patients, they don’t really know how much they’ll get paid, when they’ll get paid, and if that payment is more or less than they’re owed.
Retention curves that "smile" are always great, right?
Not when they're masking cohort degradation.
Here's what to watch out for when analyzing your cohorts ⬇️
🚨🎙🚨Check out episode 2 of
@a16z
's series on new go-to-market motions in digital health! In it,
@julesyoo
and
@justin_larkinMD
clearly break down risk-based contracting for value-based care 💊💵💊
What's all the hype about value based care and "going at risk" in digital health?
🚨 Second chapter of our
@a16z
GTM Playbooks for Digital Health is out!
@julesyoo
and I dig in with builders on key questions every founder should consider: 👇
(5/8) This is unacceptable – life or death matters like health insurance shouldn’t be subject to whether the government has your up-to-date mailing address.