Arun Penmetsa

Platforms are in, point solutions are out as the healthcare AI category leaders come into focus this year. In conversation with Shelby Livingston at Endpoints News, I shared: 1. Why AI-first companies have the greatest platform potential and heuristics for identifying these opportunities at the earliest stages, 2. How companies are differentiating through co-development and distribution partnerships with leading healthcare institutions, and 3. Strategies for navigating anemic budgets and constrained market sizes through business model innovation such as AI-enabled services and pay for performance models Read more here: https://lnkd.in/dJWqv_zC Bessemer Venture Partners Abridge #healthcare #lifesciences #AI #generativeAI

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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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M13 is thrilled to lead the Series A in RadiantGraph which is focused on personalization in healthcare. As we continue to invest in early stage companies it is abundantly clear that the biggest indicator of success is the founder and his or her ability to execute on their vision of the future. In this case, I don't think I have seen much better founder-market fit than we have with founder and CEO Anmol Madan. We believe in his vision: in order to have the best patient outcomes in healthcare we need increased personalization and AI is the breakthrough to get us there. Anmol started one of the pioneering digital health companies Ginger and then was Chief Data Scientist at Livongo and Teledoc. He has done it all: early stage, late stage, public company. And he deeply understands the nuances of the healthcare market from all angles which is critical for success. While there are many players building healthcare-specific AI capabilities, RadiantGraph is focused on outcomes: The platform is already processing personalization models for more than 3.5 million people, despite launching just last year. Excited to partner with my friend Adam D'Augelli and the great True Ventures again and Morgan Blumberg who has been deep in the healthcare market with me for many years. More on our thesis in the blog below. https://lnkd.in/evDDmC3W

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The (Healthcare) Ground Beneath Our Feet… This year it is likely that over $10 billion will be invested in the digital health sector – a robust amount, no doubt, but inconsequential when compared to the amount of capital tied up in healthcare real estate assets, which is estimated to be $1.2 trillion by Jones Lang Lasalle. Of that amount, approximately $790 billion is in the hospital sector while the remaining $490 billion is in medical office assets. It is estimated that there are 48.6k facilities with 3.4 billion square feet of healthcare real estate, 42% of which are owned by REITs and another 33% held by other private investment vehicles. Much of the digital health investment is meant to make the physical healthcare infrastructure more productive: greater operating efficiencies, greater patient throughput, more relevant personalized care models with better outcomes. As the healthcare system is being pushed to be more distributed to lower cost sites of care, accelerated now by the rapid proliferation of automation and AI capabilities, the potential impact on healthcare infrastructure assets will be profound. Thoughts on what that might look like... https://lnkd.in/eTfAdUbS #digitalhealth Flare Capital Partners

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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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More Seattle tech insights coming from Carta Head of Insights Peter Walker and GeekWire Seattle is # 5 overall in venture funding and #3 in SaaS, #6 for biotech funding; #10 for healthtech; and #10 for fintech over the past 12 months. https://lnkd.in/gjja9xJe SignalFire shared Seattle has 23% of AI Engineers, second only to San Francisco. Seattle has a little more than 10% of Big Tech engineers. “This data shows an opportunity for Seattle to attract more venture capital firms who often look to NYC when opening a second office after SF…help Seattle round-out the startup ecosystem flywheel to complement its high-quality engineering and AI talent, and tech giants that serve as acquirers as well as management training hubs that spin out founders.” https://lnkd.in/gBgqGMaM

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The Nursing Beat is coming to you LIVE from HLTH Inc. Team TNB is covering the Nurses @ HLTH track, which kicked off today with some incredible panels reflecting on the current state of healthcare & how systems are innovating from the ground up. 1️⃣ Stephen A. Ferrara, DNP, FAAN, American Association of Nurse Practitioners, moderated a panel on how nurse-led care models are transforming healthcare delivery. Featuring -   🩺 Sarah Price, National Association of Community Health Centers (NACHC) 🩺 Jing Wang, Florida State University - College of Nursing 🩺 Sherene Schlegel, Providence 💡 Key Takeaways 👉 Nursing schools should integrate public health & community health courses throughout their curricula, along with virtual care education & training, including technologies like wearables & ambient intelligence. Additionally, health systems & home-based care providers should explore developing innovative virtual care education & training programs. By leveraging nurse informaticists, we can improve data sharing & care coordination across community clinics. 2️⃣ Bre Loughlin, MS, RN, Nurse Disrupted, Inc., then moderated a panel on utilizing virtual nursing to aid the workforce staffing challenges featuring panelists - 🩺 Terri Couts, RN-BC MHA, The Guthrie Clinic 🩺 Brittany Cyriacks, MSN, RN, NI-BC, UCHealth 🩺 Tonychris Nnaka, PhD, MPH, RN, University of North Texas 💡 Key Takeaways 👉 Health systems should engage nurses in the design & implementation of virtual nursing solutions to ensure nurse-led & nurse-centered innovation. Nursing schools should expose nursing students to virtual nursing models to prepare them for the future of healthcare. Virtual nursing initiatives can be started by clearly defining the problem, building a business case, & measuring key metrics to demonstrate impact. 3️⃣ Margo B Minissian, PhD, RN, ACNP-BC, NEA-BC, FAHA, FAAN, Cedars-Sinai moderated a panel on implementing tools to reduce the documentation burden. Featuring - 🩺 Cheristi Cognetta Rieke, DNP, Mayo Clinic 🩺 Heather Hart, HCA Healthcare 🩺 Tracy Breece, MSN, NI-BC, CPHIMS, Mercy Health 💡 Key Takeaways 👉 Health systems must explore opportunities to automate patient information transfer between inpatient & ambulatory settings & leverage virtual nursing to support the discharge process. Engage nurses to identify technology gaps & collaborate with partners to pilot new solutions & gather valuable feedback. In reflecting on day one of HLTH, Tonychris Nnaka, PhD, MPH, RN, said it best - "What we do in nursing is all scientifically driven, but oftentimes we don't talk about it, & we let other people talk about our success…I've been in spaces where [nurses] did something effective...grounded in the scientific court of nursing, [but] we let other people tell the story." Team TNB is a team of nurses on a mission to share the stories & amplify the work of our nursing community. ⏰ Stay tuned tomorrow for more live updates from HLTH Inc.

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Of note: Your health records are coming to new apps This in an interesting change, and a somewhat Epic change. All puns intended. If you don’t know, the leading medical record storage solution in the US is operated by Epic. A rather critical problem is that if you walk (well drive) between two hospital in the US, the medical records tend not to follow you, unless you carry a large Manila envelope. Having Epic (and others) via TEFCA allow export of records arguably allows you to only carry your phone, which is a very siginificant change. This also (arguably) opens up a huge new innovation sector. Epic is one of the organizations that has been helping the US federal government establish the Trusted Exchange Framework and Common Agreement, or TEFCA. The goal being to iron out both the legal and technical requirements for sharing patients' data at scale. Health-care data in the U.S. has historically been siloed and difficult to move around. Clinics, hospitals and health systems can store their information in a variety of formats across dozens of different vendors, and there hasn't been a trusted nationwide mechanism in place for transporting it securely. This means if a patient moves to a different state or visits a new hospital, their medical records tend not follow. PS. If you want appreciate how profitable the US medical sector is, Epic HQ has a restantant designed to look like Kings Cross from the Harry Potter movies. https://lnkd.in/g8NaWza8

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HLTH and ENDEAVOR PARTNERSHIP for Masterclasses! Thrilled to be a new Partner and Anchor in the Health HLTH Community. Endeavor will be delivering a series of Masterclasses on a regular basis over the next year on AI and Healthcare in the areas of drug development & discovery, innovation impacting hospitals including electronic healthcare records, radiology, pathology, surgical suite logistics, discharge planning, improving patient fall risks, and addressing nurse and physician burnout. We will be discussing important partnerships in AI and Healthcare between Emerging Companies, Big Tech, Biopharma, Biotech, Bedtech, Healthtech, and Major Academic Medical Centers. As part of our 20 year development of the Endeavor Healthcare Ecosystem, we've established partnerships with Fortune 500 companies and collaborations with major tech firms, including Microsoft, as well as with Big Pharma, including Sinofi, and leading medical centers such as Mount Sinai, Memorial Sloan Kettering, SUNY Downstate, and Mass General Brigham Hospital. Our focus is on fostering collaboration as we look to integrate AI into the healthcare system. Join us on November 13th for a celebration of collaboration at the Endeavor and Mount Sinai Health Systems Healthcare AI and Technology Investor Summit, from 4:00 PM to 10:00 PM at the offices of Goodwin Proctor in NYC. For more information, please contact us at [email protected]. #Artificialintelligence #VentureCapital #Investing #Entrepreneurship #Startup #Healthcare #HealthTech #MedTech #Funds #DrMartinAlexanderGershon #BetterHealth Dr. D. Martin Alexander Gershon, MD, JD, MPH Endeavor Venture Fund & Venture Studio

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🚨 𝗘𝘅𝗰𝗶𝘁𝗶𝗻𝗴 𝗧𝗿𝗲𝗻𝗱𝘀 𝘁𝗼 𝗪𝗮𝘁𝗰𝗵 𝗮𝘁 𝗛𝗟𝗧𝗛 𝟮𝟬𝟮𝟰 🚨 As HLTH 2024 unfolds this week, industry leaders are excited to discuss key trends and innovations reshaping healthcare.  🔹 𝗔𝘃𝗶 𝗠𝘂𝗸𝗵𝗲𝗿𝗷𝗲𝗲 (𝗩𝗲𝗿𝗮𝘁𝗼) emphasizes the critical role of trusted data when it comes to AI. With AI-powered tools like NLP, ML, and Gen AI, Avi predicts transformative improvements in ROI and care delivery. 🔹 𝗥𝗮𝗷𝗲𝗲𝘃 𝗥𝗼𝗻𝗮𝗻𝗸𝗶 (𝗟𝘆𝗿𝗶𝗰) talks about focusing on creating ethical, cross-disciplinary ecosystems where responsible AI becomes a core part of operations. 🔹 𝗖𝗼𝗹𝗶𝗻 𝗕𝗮𝗻𝗮𝘀, 𝗠𝗗 (𝗗𝗿𝗙𝗶𝗿𝘀𝘁) sees a shift towards hybrid EHR solutions, emphasizing agility and specialized partnerships over traditional monolithic systems. Check out these predictions and more. https://lnkd.in/e2vkB3sY What trends are you most excited to see at HLTH? Verato team members David Beck and Joshua Firstenberg will be onsite to discuss. #HLTH2024 #HealthcareIT #AI #EHR #PatientCare

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#HLTH2024 is just getting started, and Zus Health is excited to be featured in Fierce Healthcare’s Trends to Watch at HLTH this year! 🎉 Shared data and smart interoperability are driving real change, and we’re right at the forefront. Don’t miss out – stop by Booth #4522 to learn more about how we’re changing the game for healthcare providers. Check out the full article here: #HLTH2024 #HealthTech #Interoperability #SmartData https://hubs.la/Q02V298K0

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Today's Healthcare News: 🌐 How the Cloud Transformed Covered California’s Health Exchange! 🌐 In 2020, Covered California’s health insurance platform faced unprecedented demand and performance challenges during the pandemic. With their consumer-facing CalHEERS system failing to keep up, CIO Kevin Cornish led a rapid shift to the cloud to build a more scalable and resilient infrastructure. Key takeaways from Cornish’s journey to modernization: ☁️ Scalability & Efficiency: Moving to the cloud has enabled Covered California to scale up quickly during high-demand periods, avoiding the limitations of an on-premises system that only optimized for peak seasons. 🚀 Faster Feature Deployment: Transitioning from a monolithic to a microservices architecture accelerated the pace of delivering new consumer-facing features—from years to just weeks or months. 📞 Crisis Response Capability: During an outage in January, Cornish’s team, in collaboration with Deloitte and AWS, deployed a fully operational call center with capacity for 30,000 calls daily in just 48 hours! This success demonstrated the agility and strength of their cloud-based infrastructure. 🌠 Covered California’s cloud journey underscores the power of cloud technology in modernizing public services and improving the consumer experience. #CloudComputing #HealthcareTech #CoveredCalifornia #AWS #DigitalTransformation #Insurance #Microservices #TechInnovation #ACA #MCG #SBMU #SBM101 https://lnkd.in/eWRX8xy3

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We’re back from the HLTH Inc. Conference, and it was an incredible experience! ➤ Our co-founders, Ari Brenner and Sergey Vasilenko, CCRN, MPH, MHA, presented on the transformative results our platform has had at Assuta Medical Centers — “Liberating AI to Drive Nurse Workforce Efficiency and Reduce Burnout” in the Nursing Innovations exhibit hall. 🔗 Check out Ari Brenner’s reflections after their talk — link in comment ➤ First-ever Nursing Hackathon at HLTH One of the conference highlights was joining the inaugural Nursing Hackathon! It was a special experience, combining history, innovation, and problem-solving. Rebecca Love, RN, MSN, FIEL, kicked things off with a powerful talk on nursing history, reminding us all of the profession’s resilience and progress. 🔗 Read more from Sergey Vasilenko, CCRN, MPH, MHA on his thoughts about the Nursing Hackathon and the incredible ideas generated — link in comment ➤ Conference Theme: “Be Bold” Jonathan Weiner, CEO of HLTH, summed it up best: “We need bold thinkers, bold ideas, and bold risk-takers to get us on a better path forward.” ➤  Key insights we took away from HLTH: ↳ AI solutions are evolving to directly address healthcare burnout and optimize resource allocation. ↳ Workforce issues are on everybody’s mind, lot’s of energy and resources are being invested to tackle the problem of nursing shortages and retention. ↳ Despite what many think, nursing innovation is out there and expanding. ➤ Stay tuned for two podcasts we recorded at HLTH! Ari joined Saul Marquez on Transforming Nurse Scheduling Through Automation to share insights Sergey also joined Colton Lord for a Nurse Converse Podcast talk. They discussed  In-House Health’s solutions for nursing shortages, burnout, and retention. 🔗 We’ll be sharing the links with you as soon as they’re live! What about you? What was the most interesting takeaway you brought back from the conference? #HLTH2024 #HealthcareInnovation #NursingAI #BeBold

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Excited for this one. Congrats to Alex Cohen and Hello Patient on their seed round announcement. Hello Patient stands to change the communication paradigm between patients and providers forever. Their generative AI call agent technology is tackling the tremendous admin burden of patient facing comms (scheduling, follow ups, referrals, prescription refills, etc). Massive opportunity and we think Alex and his team are expertly positioned to become market leaders. Max Ventures is thrilled to co-lead the seed round with 8VC and Bling Capital A great quote below from Alex highlighting the concept of "service as a software". Healthcare is a heavily service oriented industry - so the opportunity for step change is even more profound. The startup's approach is part of a paradigm shift where AI companies are offering service as software. "I'm a big believer that the right way to do this is through a managed services business. We're not building SaaS. I believe we can do this services as software where what was traditionally a services business now has software margins because I don't have to go employ a whole bunch of people to do the services under the hood," Cohen noted. https://lnkd.in/ehNN2AmW

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"Healthcare leaders are now interested in enterprise-wide platforms that can allow care providers to better coordinate and manage care for their patients. They’ll put a premium on interoperability, and tools and services that can integrate with the health system and its technical infrastructure (the EHR). The ongoing workforce shortage will put a premium on services that can be delivered on virtual channels, allowing providers to reach the patient without straining the already-stressed enterprise.” Caregility is helping health systems achieve #virtualengagement at every bedside with its adaptable, integrated platform. The #CaregilityCloud enhances #patientcare and team communication, supporting seamless, scalable #virtualcare across various clinical workflows. https://lnkd.in/d35_YG9C #HLTH2024 #hybridcare

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Hot take on a lot of early-stage digital health companies out there: You're not a tech company. Most tech-enabled care companies I've seen over the past two years are only tech-enabled in the sense that they use telehealth as their delivery mechanism for care. There are exceptions to this, of course - companies who build computer vision and applied AI tools to better the doctor-patient experience, companies who build tooling around risk scoring and stratification to enable more personalized medicine, companies who build truly novel intakes to better route patients to the appropriate care, etc. These companies have real technology chops and, if they sell it right to the market, can get credit for this from investors. But if you're truly a telehealth provider, you need to realize now that the goal post has shifted dramatically from 2021 and you're going to be valued at maturity at something like 3x EBITDA. That's profit. Not revenue. Throw a revenue multiple out the window. That's not the world we live in if you're a virtual doctor's office. Think of how that impacts venture math. If you're raising a seed round at $15M post-money (or $12M pre-money), it means you'll have to generate something like $150-200M in annual EBITDA to be a fund returner for your seed investors. Maybe even more with dilution, since telehealth businesses are not traditionally capital efficient and will likely need to raise material additional capital to reach that scale. You need to be ridiculously profitable (probably on $800M-$1B in annual revenue since you're likely going to be a 40% gross margin business). Here's the good news: you can set yourself up well (and probably be a contrarian founder relative to your peers), by talking about EBITDA growth and how you can grow into a fund-returning outcome based on realistic mature market comps. This will stand out for the investors you're pitching, even at the early stage. This is how you can beat the malaise of the tech-enabled care market. Focus on the right metrics and the right type of growth. You don't have to have all the answers (no founder does), but you need to make sure the ship is headed in the right direction. A focus on profitability for "tech-enabled care" (*ahem* telehealth) businesses is a good first step.

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Ep1105: Udi Goori: Bridging Digital and Health – A Journey in Innovation Udi Goori shares his journey from a tech background to leading digital health innovations at Elevance Health. He delves into the challenges of integrating diverse healthcare solutions, emphasizing the importance of collaboration, measurable outcomes, and a step-by-step approach to digital transformation. Udi reflects on the need for seamless integration in healthcare, comparing it to the evolution seen in other industries like e-commerce and digital banking. Discover how Udi’s passion for technology and people is driving a revolution in healthcare, aiming to make it more efficient, connected, and patient-centered. Full episode: https://lnkd.in/eu2TaEJa #20MinuteLeaders

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Open-source models can be a strong lever for increasing gross margins at AI companies, especially those that have hefty cost structures (e.g., enterprise sales orgs that require significant customer success or implementation resources, as well forward-deployed AI services models common in healthcare and life sciences). One of many reasons to maintain a modular and flexible stack with minimal dependencies when building an AI company. More on the importance of flexibility in the AI stack: https://lnkd.in/eA2XATRk h/t Delip Rao #ai #artificialintelligence #generativeai #healthcare

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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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