Alex Pattis

Some VC investors believe that brick and mortar - referring to a physical presence of some kind - should be avoided at all costs. Yet, the track record of clinic and hybrid care businesses in health care indicates otherwise. ==> One Medical (sold for $3.9 billion to Amazon), Oak Street (bought by CVS for $10.6 billion), Lifestance (IPO at $7.5 billion market cap), and PE-backed Premise Health (acquired by OMERS Private Equity for $1.1 billion) If a clinic is indicated as the optimal way to deliver care for that patient population, there are creative ways to build and operate them. Full article below with advice and strategies on how to build and operate hybrid clinics from my teammate Anarghya Vardhana from Maveron, Amir Dan Rubin from OneMedical Group, Steven Eidelman from Modern Animal and more!

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"Digital health is no longer the future; it is the present, reshaping our healthcare landscape in real-time." Excited to be part of the UCSF Digital Health Hub Foundation's Quarterfinalist Party! As a past board member, I'm honored to celebrate the outstanding quarterfinalists. As we reflect on the state of digital health in 2024, it's evident that the COVID-19 pandemic has fundamentally transformed healthcare delivery. The rapid adoption of telemedicine during the crisis has become a permanent fixture, with over 60% of physicians continuing to utilize this technology. The sprint towards smarter healthcare, catalyzed by necessity, has shattered preconceptions about digital-first health experiences. Virtual care is no longer a stopgap but an integral part of a seamless, anytime, anywhere health ecosystem. 🌍 We're witnessing the rise of B2B2C models in remote consultations, with companies like Teladoc Health and Amwell partnering with insurance providers to integrate their services into health plans. Public sector collaborations, like eConsult Health 's partnership with the NHS in the #UK, underscore the potential for remote consultations to enhance efficiency and accessibility at a national level. The digital health landscape is evolving rapidly, with advancements in remote consultations, mental health support, at-home diagnostics, and patient monitoring. AI and generative AI transform care delivery, making it more efficient, personalized, and patient-centric. 🤖 Yet, challenges remain. While venture capital funding for digital health has stabilized after the pandemic boom, it remains below its 2021 peak. Sectors like digital therapeutics face reimbursement hurdles, and we've seen major players like Walmart and Optum close telehealth businesses. Looking ahead, we anticipate further consolidation in digital health, driven by acquisitions to create broader ecosystems encompass telemedicine, mental health, and other specialized services. As healthcare leaders, we must leverage these digital advancements to improve access, enhance patient outcomes, and drive efficiency in our healthcare systems. The future of healthcare is digital, and the time to embrace this transformation is now. Congratulations to all the finalists! 🎉 Looking forward to the grand finale at #HLTH2024 in #LasVegas! 🙌 By the way, the pink drink that we were holding was delicious—and nonalcoholic! The Digital Health Hub Foundation - Digital Health Awards #HealthcareInnovation #DigitalHealth #UCSFHealthHub #Networking #HealthTech #Entrepreneurship #LasVegasFinale Walter Greenleaf, PhD Daniel Kraft, MD Unity Stoakes StartUp Health University of California, San Francisco UCSF Innovation Ventures American Association for Precision Medicine (AAPM) WISE World Investors & Entrepreneurs Society #AAPMhealth #aapm_health

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Boston's vibrant health tech scene is fueled by world-class accelerators and incubators, empowering startups to drive digital health, biotech, and life sciences breakthroughs. Here’s a look at some key players: MassChallenge HealthTech—This accelerator helps startups transform health solutions across digital and biotech. It connects entrepreneurs with resources and mentors to drive meaningful change. LabCentral – A coworking lab space offering shared resources and lab facilities, LabCentral supports biotech and health tech startups by providing them with an innovative, collaborative environment. #Pagliuca Harvard Life Lab – Located at Harvard, this incubator offers lab and office space to promising biotech and life sciences startups, helping them scale groundbreaking health tech solutions. Richi Entrepreneurs – With a global outlook, Richi Entrepreneurs offers a unique two-week immersion for international health tech startups, connecting them with Boston’s local mentors, investors, and industry leaders. Xontogeny – Specializing in life sciences, Xontogeny partners with early-stage health tech companies, providing strategic guidance and operational support to accelerate their journey from concept to market. These incubators and accelerators are not just nurturing innovation—they’re powering the next generation of health solutions! 🌟 #BostonHealthTech #InnovationEcosystem #Biotech #HealthTech #StartupAccelerators

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Had a blast diving into Amir Dan Rubin's extensive healthcare career on Vital Signs. Amir previously served as the CEO of One Medical and Stanford Health Care, was an EVP at United/Optum and is now the Founding Managing Partner at Healthier Capital. Our conversation spanned payer-provider integrations, lessons learned from leading One Medical, applications of generative AI, and more. Some highlights: ⚡Combining care models We talked a lot about the One Medical/Iora combination. Amir argues that just because two care delivery approaches may occupy the same physical location (e.g., a clinic), that doesn’t mean they necessarily need to conform to the same economic model. For instance, One Medical and Iora were able to combine effectively despite the former being a membership model and the latter being global capitation. Amir emphasizes that much of the overhead resources (e.g., front desk staff, phlebotomy) can be shared across models. ⚡How One Medical uses generative AI to improve efficiency One Medical allows members to message the care team, and then uses NLP to read the message, figure out its content, and triage it to the appropriate team member. Amir is excited about leveraging internal knowledge graphs to get around hallucinations. This approach can point to relevant internal data in helping compose responses, creating more trust and accuracy in the outputs. ⚡Behind the Amazon acquisition One Medical was interested in expanding its direct to consumer offering. However, they recognized that customer acquisition was costly, which is why partnering with Amazon Prime’s existing membership base made sense for them. Amir explains how at their core, both Amazon and One Medical are all about using technology and logistics to create an excellent customer experience. An awesome conversation ranging from health system innovation to startup strategy to health tech investing! Listen to our full episode below: Spotify: https://spoti.fi/3Wrbnol Apple: https://apple.co/3XWOomb

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Someone broke down the estimated costs of a $15 Sweetgreen salad. We need these cost graphics for digital health to help future founders. Especially for tech enabled cos, the greatest cost is labor. Much of the "value created" is in curation and matching, which means the gross margins are reliant on labor arbitrage. Pay someone $X, but get paid $X+Y% per visit. The challenge with healthcare is that you often have to pick one of two business models: 1. specialized, low volume, high cost, low gross margin % 2. generalized, high volume, low cost, high gross margin % I'd argue founders should focus on gross dollars over the lifetime of the customer (like Jeff Bezos said) instead of gross margin %'s, but we'll leave that for another time. The challenge is that many tech enabled digital health cos have high cost of goods sold (labor) and moderately high product, design, and engineering budgets. We must build differentiated solutions for patients, clinicians, and clients to be out incumbents, however, we're realizing that companies are ultimately valued on the discounted value of future cash flows. And the high SG&A costs at most organizations might be inbalanced to the unit economics of the business. I'm not sure the math pencils out for everyone unfortunately. But I'm just a guy on the internet, would love to hear the thoughts from those smarter than I (you!). Comment below. --- p.s. I have no idea the accuracy of the graphic and not an investor in Sweetgreen. Cheers. Credit: David Crowther

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Big news from Karoo Health today. This partnership will accelerate their ability to deliver value based care (VBC) for cardiovascular disease. If you are frustrated with America's healthcare system, VBC will give you reasons to be hopeful. Not only does it drive down costs, but it is better care. Initial data shows 29% of patients using Karoo's model have been diverted from at least one unnecessary ER visit. That's huge savings for our healthcare system and a huge impact on those patients' lives...a true win-win.

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Exciting news from Monica Chopra, Jeffrey De Flavio, MD, Samantha Adelberg, and the rest of the Auxa Health team as they officially announce their $5.2M Seed round. The team's deep industry expertise and drive for change have led them to solve critical infrastructural friction to providing quality healthcare and adoption of value-based care. Auxa's AI benefit navigation platform is simplifying the complexities of healthcare by streamlining all of the fragmented and siloed data and information to make it actionable in real-time for healthcare organizations. For the 70% of Americans who aren't getting access to the health and social care benefits they deserve, Auxa's solution will be pivotal in enabling equitable care. We're thrilled to partner with co-investors Zeal Capital Partners, AlleyCorp, Laconia, and Chaac Ventures on this journey and look to share many more milestones ahead. Cc K50 Ventures, Ryan Bloomer, Daniel Vásquez, Nick Talwar, Stefanie Ng https://lnkd.in/dPDY7-Db

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🧬 This week's Austin Bio & Health Roundup brings new capital to deploy, fresh data, major clinical milestones, & important strategic acquisitions. 🧬 💰 Funding Arsenal Bridge Ventures is raising $150M to build bio startups. Based in Austin and New York, their explicit aim is to fuel emerging science beyond “traditional” hubs. More fuel for the Austin Bio & Health flywheel. Huge congrats Jim Graham CFA. I am very excited to see what’s to come. 📊 Data New data from Peter Walker at Carta breaks down median dilution & pre-money valuation for seed-stage companies by sector in 2024. For Bio & Health, the answer is...It depends. Biotech saw median dilution at 25.5%, the most of any sector, while Healthtech ranked 12th with 19.8%. Their pre-money valuations were quite similar, both just under $12M, putting them on the lower end for this stage compared to other sectors. Got to pump those numbers up!! 🚀 Launches, Expansions, Milestones, and Wins Somite Therapeutics, the AI driven cell therapy company, has been granted FDA Orphan Drug and Rare Pediatric Disease Designations for their lead program in Duchenne muscular dystrophy. At this rate, I may need to a create Somite section in the roundup! Amazing Micha Y. Breakstone 🇮🇱🎗️! Neuralink received Breakthrough Device Designation from the FDA for Blindsight. And yes, it’s exactly what it sounds like! 🤝 M&A and Partnerships SubjectWell, a patient recruitment platform, is acquiring Trials24, a provider of patient recruitment solutions with a strong footprint in 13 European countries. Congrats Fred Martin on the next steps to building a truly global company. What’s Next?

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Excited to share insights from our recent panel discussion on the latest trends in biotech and healthcare investments. We touched upon the following topics: 💡 Investment Trends in Biotech and Healthcare: Opportunities include continued innovation, and emerging technologies. 🧬 Advancements in Longevity and Regenerative Medicine: Breakthroughs in senescent cell clearance, stem cell rejuvenation, telomere biology, and the Klotho protein hold promise for extending healthspan and lifespan. 👵 Ethical Implications of Extending Human Lifespan: Equitable access, overpopulation, cultural impacts, generational conflict, and autonomy are key dilemmas. Inclusive governance and public dialogue are crucial for responsible navigation. 🤖 AI and Precision Medicine: AI is transforming personalized healthcare by integrating multi-omic data, enhancing biomarker discovery, predictive modeling, and clinical decision support, paving the way for more tailored and efficient treatments. ✂️ Gene Editing and CRISPR Technology: Ethical considerations include safety, access, human enhancement, and consent. Regulatory frameworks must evolve to ensure robust governance, public engagement, and global coordination. 🏥 Decentralized Clinical Trials and Remote Monitoring: DCTs increase patient access and retention, collect real-world data, and save costs, but face challenges in data quality, regulatory compliance, and technology infrastructure. Remote monitoring enhances patient engagement and data integrity. 📱 Health Tech and Wearable Devices: Wearables enable remote monitoring and personalized care but face barriers like data privacy, accuracy, user experience, integration, cost, and regulatory oversight. 🚀 Regulatory Pathways for Innovative Therapies: Biotech companies navigate complex, evolving frameworks. Solutions include developing clear guidelines, fostering regulatory flexibility, promoting global harmonization, and ensuring patient engagement. This discussion highlighted the incredible potential and intricate challenges in the biotech and healthcare sectors. Together, we can drive innovation while addressing ethical and regulatory concerns to improve global health outcomes. 🌟 #Biotech #HealthcareInnovation #LongevityResearch #PrecisionMedicine #GeneEditing #ClinicalTrials #HealthTech #AI #Wearables WISE World Investors & Entrepreneurs Society Private Investment Forum Worldwide American Association for Precision Medicine (AAPM) #RegulatoryAffairs #PublicHealth #AI #News

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One of my proudest moments as an investor occurred today as Alaffia Health announced its series A because it shows how the Aperture® Venture Capital vision of multi-level, multi-generational #impactinvesting is succeeding in the marketplace. Here’s the model in its most basic form : ✅As diverse fund managers with meaningful capital to allocate, we are changing the VC landscape every day just by doing our day jobs. ✅As Black/Brown investors with ~40 years experience collectively, Aperture GPs have access to talent /excellence that others do not, so our portfolio *organically* is more inclusive by race, gender and geography even while optimizing for financial outcomes (all about the alpha). ✅Our most successful portco’s are using financial #innovation to solve market problems that impact underrepresented demographics and underserved communities. Alaffia Health is a shining example of the impact portion of our overall fund thesis, and we couldn’t be prouder of TJ Ademiluyi and Adun Akanni, MPH, PMP - the dynamic brother-sister founder duo whose vision we have steadfastly supported on their journey. Congratulations to TJ and Adun from William Crowder and myself, as well as the whole Aperture team- Marjorie King Philip McKenzie Yves Louis-Jacques Tanvi Lal Michelle Dhansinghani Lisha Bell Katie Kelly Amy Chung Cindy Chong, CFA Brian Fernandes-Halloran Monroe France Jayden Pantel Darren Herman Evan Wladis Neal Triplett Thomas Scriven Peter Ammon Irina Bit-Babik Tim Milanich Rob Rahbari

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🧬 This week's Austin Bio & Health Roundup highlights new funding, intriguing data, and major commercial & scientific milestones 🧬 💰 Funding Hello Patient, building Gen-AI phone agents for healthcare providers, came out of stealth with a $6.3M seed raise. Congrats Alex Cohen! And it’s Austin funding Austin, with 8VC a key part of the round. Aspira Women's Health, focused on non-invasive AI-powered diagnostics, was awarded a $10M grant from ARPA-H to advance their blood test for endometriosis. Well done, Nicole Sandford, Sandy Milligan, MD JD & team. Maxwell Biosciences, a synthetic small molecule drug platform, received ~$3M from the Medical Technology Enterprise Consortium (MTEC) to find assets that will prevent wound infection on the battlefield. Fantastic work, Joshua McClure & team. Reminder: I don’t cover SEC filings. When the builders themselves announce, I’ll shout it from the rooftops! 📊 Data Clutch VC released its Texas Seed Funding Update (YTD Q3): YTD 387 seed rounds raised for a total $636M. Though deal counts are down QoQ, capital invested has trended upward, making this the highest quarter since Q1 2023. Health was the second largest sector with 27% of all capital raised so far this year, up from 16% during the same time frame last year. Great data & insights Rajiv Bala, Steve Coffey, and Caitlin McHugh. 🤝 M&A and Partnerships Lumos Pharma entered a merger agreement with Double Point Ventures, going private at a $38M valuation. 🚀 Launches, Expansions, Milestones, and Wins Oracle Health announced updates to its Data Intelligence platform, with enhancements to Clinical, Analytics, and Care Coordination products. 🤠 Texas Bio Triangle Houston-based Coya Therapeutics, Inc. shared positive results from a double-blind study of low-dose interleukin-2 (LD-IL-2) in Alzheimer’s, showing the therapy is safe and well tolerated with promising trends toward cognitive improvement. Amazing Howard Berman, PhD, Arun Swaminathan, and the rest of the team. Dallas-based Stone Mountain Ventures closed a $5M Fund II focused on health & AI. Fund I included Austin Bio & Health startups Legion Health and MDisrupt. Congratulations, John Diaz and keep looking at Austin for new opportunities! Quick Note: Some items this week actually happened last week, apologies if I missed them! Please tag or message me for future announcements so I can make sure to include them. What’s Next?

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If you are in Basel for BioTechX Europe, do not miss this presentation by ZONTAL , part of the SciY family, discussing how you can leverage their highly automated #digitalization platform to make your data #FAIRdata #AIready

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Private Biotech Fundraising - Maximize Investor Engagement by overpreparing and having a detailed memo in addition to an investor deck – not common, but A+ approach. Despite a rise in private funding for biotech startups in Q1 2024, the market has largely plateaued since 2022, presenting ongoing challenges for many private biotech firms. To maximize investor engagement and boost your chances of expediting the fundraising process. I strongly advise teams to be exceptionally well-prepared and proactive. Do a Memo too! It's fundamental to have a thorough pitch deck that presents an investment thesis right from the start. However, it’s equally crucial to prepare a comprehensive memo covering all bases—this includes the competitive landscape, distinct advantages, potential risks, fundraising specifics, founders' backgrounds, product details, and market size. Such preparation makes it easier for venture capitalists (VCs) to grasp the business's potential and can accelerate the investment process. Founders should meticulously guide VCs through their diligence by providing comprehensive and easily digestible information. This approach not only streamlines the evaluation process but could also enhance your startup's positioning in the eyes of potential investors. By offering detailed insights, you can help VCs with their due diligence and prevent them from misinterpreting your business's position, leading to a more accurate and favorable assessment. Although not widely adopted, this proactive approach can be very useful in guiding VCs through the diligence process, making it easier and quicker for them to understand and invest in your business.   https://lnkd.in/eRyaEmti   #Privatebiotechfundraising #Bestpractices #Privatebiotechfundraisingguidance

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This week Mikal Ventures brings you a 4-week breakdown of the US capital market with an emphasis on the Mikal verticals. Over the 4-week period ending June 10, just over 590 new companies were added, resulting in 95,661 companies included in the US Health Tech, Med Tech, Fin Tech, AI Tech, and Ed Tech verticals. AI Tech maintained its most active status, seeing the greatest percentage of growth in both new companies and transactions. The US Fin Tech vertical led the way in SEC Filings and news articles. Mikal Ventures publishes these stats to provide a perspective on how the verticals and new startups move through time. We hope you find them informative and thought-provoking. VC Investors are always adjusting their "Play Book" with a variety of options for investing. Mikal Ventures is one of those alternatives, offering curated solutions to real world problems. Reach out if you have questions on how we can be of assistance and bookmark https://mikalventures.com/ for additional insights and information.

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Get to know our #hardtech portfolio! Check out the first post in our 'portfolio spotlight' series! Aspect Biosystems, led by CEO Tamer Mohamed, is a leader in regenerative medicine and 3d bioprinting! Learn more below 👇

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A recent monumental milestone for the femtech industry: Flo Health secured $200M in funding, achieving a valuation of over $1 billion as the world's first femtech unicorn. It’s important to acknowledge both the progress and the paradoxes within this achievement. Flo Health, a platform empowering women with vital health insights, was founded by two male cofounders. 🤔 This brings to light a critical discussion about representation and inclusivity in the femtech space. While their contribution is commendable, it underscores the necessity for more female founders and leaders in industries that primarily serve women. As the founder of BAD BITCH EMPIRE dedicated to breaking down barriers for women in business and investing, I see this as a call to action. We need more women at the helm of innovative solutions addressing our unique health needs. It's not just about creating products for women; it's about ensuring these products are driven by the voices and experiences of women themselves. This historic funding round proves that femtech is not only vital but also a lucrative market. Now, let's channel this momentum to elevate more female entrepreneurs, investors, and leaders who can drive the next wave of femtech innovations. #Femtech #WomenInTech #FemaleFounders #InvestInWomen https://lnkd.in/euwbhqVB

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According to the latest report from Rock Health, digital health funding in Q1 2024 totaled $2.7B across 133 deals, with an average deal size of $20.6M. It doesn’t break out device-related investments, but most medtech founders I meet these days are being forced to chase tiny rounds made up of endless little checks, consuming valuable energy and slowing their progress. The benign neglect of this next generation of diagnostic and therapeutic devices is counterproductive and surprising. Given the crowded virtual care market, for example, I’d expect more such companies would be exploring medtech partnerships, investments or acquisitions that'd enable them to back integrate into delivering sharper, and more differentiated, care and treatment. This is exactly what Maverix Medical is doing from the other direction: Reshaping the entire spectrum of lung cancer care by integrating more advanced + effective approaches to screening and diagnosis, treatment and therapeutics, and even palliative care…And putting it all to work through an innovative provider network. One notable investor exception is Y Combinator partner Surbhi Sarna who’s been backing great teams like Selera Medical (YC W24) doing foundational work on ambitious medical devices. Without more support from investors like her, we’re going to increasingly find ourselves stuck with the incremental portfolio improvements from the incumbents, and that’s just not nearly enough.

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Medtech VC investment is on the rise! 💡 Investment in medtech companies grew by 3% y-o-y to $3.3 billion, according to Pitchbook. 🚀 Exits for venture-backed medtech firms hit $6.6 billion in the first half of the year, though acquisitions remain rare due to ongoing price gaps between buyers and sellers. #Medtech #VentureCapital #StartupEcosystem #Pitchbook

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With Americans over 65 projected to grow from 58 million to 82 million by 2050, AI solutions like Foundation Capital portco SafelyYou are becoming increasingly crucial. They’re also a powerful answer to the industry’s persistent staffing shortages, acting as a force multiplier for caregivers. The benefits extend beyond individual residents and their families. For senior living homes, SafelyYou’s AI-powered fall prevention and response system translates to longer lengths of stay and higher net operating income (NOI). With AI, we are working towards a future where every individual—regardless of age or health status—receives the highest quality care, tailored to their unique needs and circumstances. Companies like SafelyYou are leading the charge in making this future a reality, and I’m immensely proud to work alongside them as they use AI to build a better world.

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