Earlier this week, the U.S. Food and Drug Administration (FDA) announced that it would be updating its guidance to allow self-swab tests for COVID-19, in which a patient collects a sample from their own nose for a health professional to test. On Wednesday, UnitedHealth Group revealed the results of a peer-reviewed large-scale study that provided the science behind the decision to switch to the less-invasive sample collection method.
The self-swab process doesn’t change where FDA-approved testing can happen — this expanded guidance only applies to the method of collection, meaning at-home swab-based PCR tests that many startups had hoped to bring to market are still on hold. But even though people still have to go to either clinics or drive-through testing sites to get a COVID-19 test done, the ability to self-swab offers more comfort, as well as real advantages when it comes to the health and safety of the clinicians and front-line healthcare workers staffing the sites.
This new study shows that not only does self-swabbing lessen the chance of someone with COVID-19 passing on their infection to a healthcare worker, it’s also just as effective as a test where clinicians collected the sample from much deeper inside a person’s nasal cavity. UnitedHeatlh worked with the Bill & Melinda Gates Foundation, as well as Quest Diagnostics and the University of Washington to conduct the study, which covered almost 500 patients who received tests at OptumCare diagnostic facilities in the state of Washington.
There are other benefits to the self-swab method as well, including eliminating the need for specifically trained medical professionals who have to administer the tests at point-of-care. This should help with clearing up backlogs owing to staffing, at least, though supplies and bottlenecks due to demand are going to persist as more people seek diagnosis.
Chargify, the subscription billing platform, announced today that it has acquired event streaming company, Keen for an undisclosed amount. One interesting aspect of this deal is that both companies are part of the Scaleworks private equity firm’s stable of companies.
Keen gives Chargify an event streaming business, and it has taken advantage of that by adding an event-based billing component to the platform.
Chargify CEO Paul Lynch believes that event-based billing is the next step in subscription pricing. Just as serverless architecture provides a way to pay for only the infrastructure resources you use and no more, event billing provides a way to pay for the software services you use and no more.
“It’s a unit-based kind of billing model where you’re paying down to the very last unit of what you’re consuming,” he said. That means that you are no longer paying a fixed monthly or yearly price for services you may or may not use. Instead, you only pay when you open the service and actually use it.
It sounds logical, but he says it’s actually a hard problem to solve without the kind of technology Keen provides. “No one is delivering event-based billing. So I asked myself why, and it’s because the Keen component, the event data management component is so difficult to build and to manage,” Lynch explained.
He says that having Keen in the same building, and part of the same family of companies certainly helped make the deal happen. “The fact that it was owned by Scaleworks is obviously an enormous benefit. Going out and buying a business, finding that business to acquire is super hard. The fact that Keen was sitting down the hall was an unbelievably surreptitious kind of benefit,” he explained.
That said, the acquisition still involved all the kinds of steps, hurdles and due diligence that would be required in any similar exercise. “You’re still going to the board. You’re still putting together board pricing projections. You’re still looking for Board approval,” he said.
While Keen’s technology becomes an integral part of the Chargify platform with the acquisition, Lynch said that the company will continue to operate as before servicing its 800 customers and building on its product set.
The event-based billing feature is available starting today.
Elon Musk is not one to mince words, but he may have just lost a potential customer because of a cutting tweet.
That customer is renowned big deal Bill Gates, who sat down recently with YouTuber Marques Brownlee, who joined the platform in 2009 and has amassed more than 10 million viewers. Gates and Brownlee have met before, and the idea was to have Gates discuss some of what the Bill & Melinda Gates Foundation has planned for this year, which marks the 20th anniversary of the organization.
Unsurprisingly, the conversation touched on climate change and in pretty short order sustainable transportation, with Brownlee bringing up Tesla and asking if, when “premium” electric cars grow more affordable, they’ll also become more ubiquitous.
Gates didn’t exactly malign Tesla with his answer, telling Brownlee: “The premium today is there, but over the next decade — except that the [mileage] range will still be a little bit less — that premium will come to zero. [When we look at all the sectors addressing climate change] passenger cars is certainly one of the most hopeful, and Tesla, if you had to name one company that’s help drive that, it’s them.”
What Gates did next, however, did not sit well with Musk, apparently. He expressed excitement about his first new electric car, which happens not to be a Tesla.
Said Gates: “Now all the car companies, including some new ones, are moving super fast to do electric cars. The biggest concern is, will the consumers overcome that range anxiety? I jut got a Porsche Taycan, which is an electric car. I have to say, its a premium price car, but it’s very, very cool. That’s my first electric car and I’m enjoying it a lot.”
Musk felt compelled to weigh in with a tweet after learning about the exchange.
Specifically, a Twitter account associated with an unofficial Tesla newsletter, tweeted “a lot of people are going to watch the interview and they are going to trust Bill’s word for it and not even consider EVs. Why? Because Bill Gates is a really smart guy!”
To which Musk responded, “My conversations with Gates have been underwhelming tbh.”
My conversations with Gates have been underwhelming tbh
— Elon Musk (@elonmusk) February 18, 2020
It’s funny, because they are both billionaire geniuses, and it’s unexpected.
It’s also nasty enough that you can guess Gates, a car collector, won’t be buying a Tesla or speaking in a positive way about the company any time soon.
Memphis Meats, a developer of technologies to manufacture meat, seafood and poultry from animal cells, has raised $161 million in financing from investors including Softbank Group, Norwest and Temasek, the investment fund backed by the government of Singapore.
The investment brings the company’s total financing to $180 million. Previous investors include individual and institutional investors like Richard Branson, Bill Gates, Threshold Ventures, Cargill, Tyson Foods, Finistere, Future Ventures, Kimbal Musk, Fifty Years and CPT Capital.
Other companies including Future Meat Technologies, Aleph Farms, Higher Steaks, Mosa Meat and Meatable are pursuing meat grown from cell cultures as a replacement for animal husbandry, whose environmental impact is a large contributor to deforestation and climate change around the world.
Innovations in computational biology, bio-engineering and materials science are creating new opportunities for companies to develop and commercialize technologies that could replace traditional farming with new ways to produce foods that have a much lower carbon footprint and bring about an age of superabundance, according to investors.
The race is on to see who will be the first to market with a product.
“For the entire industry, an investment of this size strengthens confidence that this technology is here today rather than some far-off future endeavor. Once there is a “proof of concept” for cultivated meat — a commercially available product at a reasonable price point — this should accelerate interest and investment in the industry,” said Bruce Friedrich, the executive director of the Good Food Institute, in an email. “This is still an industry that has sprung up almost overnight and it’s important to keep a sense of perspective here. While the idea of cultivated meat has been percolating for close to a century, the very first prototype was only produced six years ago.”
The Catalyst Fund has gained $15 million in new support from JP Morgan and UK Aid and will back 30 fintech startups in Africa, Asia, and Latin America over the next three years.
The Boston based accelerator provides mentorship and non-equity funding to early-stage tech ventures focused on driving financial inclusion in emerging and frontier markets.
That means connecting people who may not have access to basic financial services — like a bank account, credit or lending options — to those products.
Catalyst Fund will choose an annual cohort of 10 fintech startups in five designated countries: Kenya, Nigeria, South Africa, India and Mexico. Those selected will gain grant-funds and go through a six-month accelerator program. The details of that and how to apply are found here.
“We’re offering grants of up to $100,000 to early-stage companies, plus venture building support…and really…putting these companies on a path to product market fit,” Catalyst Fund Director Maelis Carraro told TechCrunch.
Program participants gain exposure to the fund’s investor networks and investor advisory committee, that include Accion and 500 Startups. With the $15 million Catalyst Fund will also make some additions to its network of global partners that support the accelerator program. Names will be forthcoming, but Carraro, was able to disclose that India’s Yes Bank and University of Cambridge are among them.
Catalyst fund has already accelerated 25 startups through its program. Companies, such as African payments venture ChipperCash and SokoWatch — an East African B2B e-commerce startup for informal retailers — have gone on to raise seven-figure rounds and expand to new markets.
Those are kinds of business moves Catalyst Fund aims to spur with its program. The accelerator was founded in 2016, backed by JP Morgan and the Bill & Melinda Gates Foundation.
Catalyst Fund is now supported and managed by Rockefeller Philanthropy Advisors and global tech consulting firm BFA.
African fintech startups have dominated the accelerator’s startups, comprising 56% of the portfolio into 2019.
That trend continued with Catalyst Fund’s most recent cohort, where five of six fintech ventures — Pesakit, Kwara, Cowrywise, Meerkat and Spoon — are African and one, agtech credit startup Farmart, operates in India.
The draw to Africa is because the continent demonstrates some of the greatest need for Catalyst Fund’s financial inclusion mission.
Roughly 66% of Sub-Saharan Africa’s 1 billion people don’t have a bank account, according to World Bank data.
Collectively, these numbers have led to the bulk of Africa’s VC funding going to thousands of fintech startups attempting to scale finance solutions on the continent.
Digital finance in Africa has also caught the attention of notable outside names. Twitter/Square CEO Jack Dorsey recently took an interest in Africa’s cryptocurrency potential and Wall Street giant Goldman Sachs has invested in fintech related startups on the continent.
This lends to the question of JP Morgan’s interests vis-a-vis Catalyst Fund and Africa’s financial sector.
For now, JP Morgan doesn’t have plans to invest directly in Africa startups and is taking a long-view in its support of the accelerator, according to Colleen Briggs — JP Morgan’s Head of Community Innovation
“We find financial health and financial inclusion is a…cornerstone for inclusive growth…For us if you care about a stable economy, you have to start with financial inclusion,” said Briggs, who also oversees the Catalyst Fund.
This take aligns with JP Morgan’s 2019 announcement of a $125 million, philanthropic, five-year global commitment to improve financial health in the U.S. and globally.
More recently, JP Morgan Chase posted some of the strongest financial results on Wall Street, with Q4 profits of $2.9 billion. It’ll be worth following if the company shifts any of its income-generating prowess to business and venture funding activities in Catalyst Fund markets like Nigeria, India and Mexico.
Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.
After a short pause, we’re back on the topic of unicorn layoffs. While it’s cheery that a number of companies are chugging ahead with ARR growth powered by efficient spend, not every company has taken a similar approach. As we’ve seen in the last six months, many companies that raised big checks wound up spending too much and are now reducing headcount and other costs.
Today I want to chew over the latest news from OYO, which is beating a retreat to reduce losses. And, I’m following recent notes from venture capitalist Bill Gurley about how much money a company should raise before an IPO without engendering market speculation that it’s a money bonfire, torching cash to cast itself in good light.
OYO, the SoftBank-backed budget hotel startup, is releasing staff, reducing capacity and pulling out of some locations altogether. The firm, famous for its hyper-growth and aggressive capital raises, will cut 1,450 staff, including 1,000 in its home country of India. In fact, the company is leaving several hundred cities in India and has cut tens of thousands of rooms from its rolls, according to reports.