The next healthcare revolution will have AI at its center

The global pandemic has heightened our understanding and sense of importance of our own health and the fragility of healthcare systems around the world. We’ve all come to realize how archaic many of our health processes are, and that, if we really want to, we can move at lightning speed. This is already leading to a massive acceleration in both the investment and application of artificial intelligence in the health and medical ecosystems.

Modern medicine in the 20th century benefited from unprec­edented scientific breakthroughs, resulting in improvements in every as­pect of healthcare. As a result, human life expectancy increased from 31 years in 1900 to 72 years in 2017. Today, I believe we are on the cusp of another healthcare revolution — one driven by artificial intelligence (AI). Advances in AI will usher in the era of modern medicine in truth.

Over the coming decades, we can expect medical diagnosis to evolve from an AI tool that provides analysis of options to an AI assistant that recommends treatments.

Digitization enables powerful AI

The healthcare sector is seeing massive digitization of everything from patient records and radiology data to wearable computing and multiomics. This will redefine healthcare as a data-driven industry, and when that happens, it will leverage the power of AI — its ability to continuously improve with more data.

When there is enough data, AI can do a much more accurate job of diagnosis and treatment than human doctors by absorbing and checking billions of cases and outcomes. AI can take into account everyone’s data to personalize treatment accordingly, or keep up with a massive number of new drugs, treatments and studies. Doing all of this well is beyond human capabilities.

AI-powered diagnosis

I anticipate diagnostic AI will surpass all but the best doctors in the next 20 years. Studies have shown that AI trained on sizable data can outperform physicians in several areas of medical diagnosis regarding brain tumors, eye disease, breast cancer, skin cancer and lung cancer. Further trials are needed, but as these technologies are deployed and more data is gathered, the AI stands to outclass doctors.

We will eventually see diagnostic AI for general practitioners, one disease at a time, to gradually cover all diagnoses. Over time, AI may become capable of acting as your general practitioner or family doctor.

9am.health launches with $3.7M to tackle virtual diabetes care

Founders like to create companies around what they know, and Frank Westermann and Anton Kittelberger know diabetes.

They met and bonded over both having type 1 diabetes — Westermann was diagnosed over 25 years ago — and started the MySugr app for diabetes self-management in 2012 (they won a TC pitch-off back in 2011). Four years later, Westermann moved to the U.S. from Austria to introduce MySugr stateside before the company was acquired by Roche for $100 million in 2017.

The pair moved on to their next journey, also in diabetes, starting 9am.health in April, a virtual diabetes clinic designed to provide people living with prediabetes and type 2 diabetes access to personalized care and affordable medications from their homes. 9am.health’s clinic was launched in August.

Today, the San Diego-based company announced a $3.7 million seed round from Founders Fund, Define Ventures, Speedinvest and iSeed Ventures to target the 1 in 3 people living with diabetes in the United States, Westermann told TechCrunch.

“We understand the day-to-day challenges that people with prediabetes and type 2 diabetes have,” he added. “Access to care is the real issue, and rather than have patients wait weeks to get an appointment, we send a kit with tests to your home, and you send it back to us.”

9am.health kicked off in Texas and California, and is now available in 33 states. It is finding patients through digital outreach, community work and hospitals.

Even with insurance, the average person living with diabetes spends about $16,750 per year on medical expenses and has approximately 2.3 times higher the costs than if they didn’t have the disease. Instead, patients can subscribe to 9am.health for $40 per month; that includes online prescription shipping, unlimited personal medical care, medications to manage diabetes, hypertension or hyperlipidemia and at-home lab tests.

Westermann sees other companies working in the diabetes space, but says 9am.health is unique in providing “a digital front door for entire diabetes care,” while others focus on specific pain points. By taking that whole approach, he sees opportunity in going beyond diabetes to the general chronic disease realm as many living with diabetes — 98% of Americans in fact — also have other comorbidities like high blood pressure, high cholesterol and mental health issues, he added.

The new funding will enable the company to grow its team and carve out some of the digital diabetes market share that was valued at $13 billion in 2020 and is forecasted to grow annually by 18.8% through 2027. 9am.health will also invest in advancing its virtual screening ability and expand the types of medication it can offer.

9am.health diabetes kit

“We want to tear down the barriers and make care as easy as possible and managing diabetes part of life,” Westermann said. “When you live with chronic illness, it is an everyday thing, and sometimes you feel good, and others days you don’t. That’s why we named the company 9am.health because you can wake up at 9 a.m. and start your diabetes journey all over again.”

Lynne Chou O’Keefe, founder and managing partner at Define Ventures, says the future of healthcare is going to be more consumer-focused and will be wrapped around the patient’s care journey. She considers 9am.health to be leading this type of care with a platform that bundles education, community, coaching and care that is direct-to-consumer.

Chou O’Keefe has been investing in healthcare her entire VC career, and sat on the board of Livongo for four years. Through that experience she learned how patients struggle with their care decisions, and finds 9am.health’s founders to have a similar deep expertise and understanding in diabetes, especially with the success they had with MySugr.

“The last place you should receive healthcare is in the doctor’s office, while the first place should be wherever you are,” she added. “This is a very different way than what the healthcare system is today. We feel that people want to manage their diabetes, but then go on and live their lives.”

 

Pandemic’s shift to remote wellness helps Numan raise $40M Series B led by White Star

Numan, the European subscription service covering erectile dysfunction (ED) and men’s wellness/health needs more generally, has raised $40 million in a Series B funding round led by White Star Capital, with participation from existing investors Novator, Vostok New Global, Anthemis Exponential, Colle Capital, and new investor Hanwha Group. The new round will be used to fuel expansion.

Numan’s current roster of services cover ED, premature ejaculation, hair loss, gut and lung health, and nutritional deficiencies. But they can also do blood tests for general health needs which don’t require in-person appointments.

Post-pandemic, the digitization of health and wellness continues apace. Had we not had a pandemic, vitamins, and the like, delivered through the letterbox, would almost certainly have continued to grow steadily as a business. But with the pandemic, businesses that can speak to our health needs remotely have exploded.

Who would have considered taking a blood test remotely a ‘normal thing’ two years ago? Now it’s practically required. Into this space, wellness companies have uncovered an extremely lucrative nexus of trends: an aging male population with a desire to remain sexually active, increasing awareness of their own health, the convenience of subscription, and the imperative of the pandemic to keep things remote has proven to be a powerful combination of forces.

Numan is not alone in this space. Roman and Hims, for example, are two big players in the US. The open door Numan is pushing against is more this wider movement around male health, which men themselves are becoming more open to. As well as growing organically, Numan has also made two strategic acquisitions of companies in the UK and Sweden to expand its footprint. It’s likely this new round will lead to similar strategic plays.

With sexual health a tricky subject for men, digital services are stepping in to mitigate any embarrassment around having to sit in front of the family GP. Numan is also regulated by the Care Quality Commission as a registered healthcare provider, giving it a further stamp of approval.

Numan claims men now prefer its model to in-person healthcare meetings. In its own survey of 800 subscribers, 88% said that using the service has improved their confidence, while 68% say that using Numan has also improved their relationships, and over half said the effects of the pandemic had given them a more positive impression of using digital healthcare.

In a statement Sokratis Papafloratos, CEO & founder, Numan said: “This funding is a significant milestone on our journey to help millions of men be healthier. White Star Capital is one of the best investors in our space, and I’m delighted to be working together along with a wider team of brilliant investors.”

Speaking to me over a call, Papafloratos added that despite there being a lot of competition in the space “this is not a winner-takes-all-market. We have 25 languages on the team so we understand the market, patients, regulation, we understand it more in-depth than many competitors.”

Eric Martineau-Fortin, Founder and Managing Partner, White Star Capital: “Men’s health has been under-served by traditional services and needs innovative businesses to break down barriers and ensure taboos don’t prevent men from being happy and healthy. Numan’s digital offering helps men take charge of their health discreetly and decisively. We’re incredibly excited by Sokratis and his team, and look forward to working with them as they grow.”

UK dials up the spin on data reform, claiming ‘simplified’ rules will drive ‘responsible’ data sharing

The U.K. government has announced a consultation on plans to shake up the national data protection regime, as it looks at how to diverge from European Union rules following Brexit.

It’s also a year since the U.K. published a national data strategy in which said it wanted pandemic levels of data sharing to become Britain’s new normal.

The Department for Digital, Culture, Media and Sport (DCPS) has today trailed an incoming reform of the information commissioner’s office — saying it wants to broaden the ICO’s remit to “champion sectors and businesses that are using personal data in new, innovative and responsible ways to benefit people’s lives”; and promising “simplified” rules to encourage the use of data for research which “benefit’s people’s lives”, such as in the field of healthcare.

It also wants a new structure for the regulator — including the creation of an independent board and chief executive for the ICO, to mirror the governance structures of other regulators such as the Competition and Markets Authority, Financial Conduct Authority and Ofcom.

Additionally, it said the data reform consultation will consider how the new regime can help mitigate the risks around algorithmic bias — something the EU is already moving to legislate on, setting out a risk-based proposal for regulating applications of AI back in April.

Which means the U.K. risks being left lagging if it’s only going to concern itself with a narrow focus on “bias mitigation”, rather than considering the wider sweep of how AI is intersecting with and influencing its citizens’ lives.

In a press release announcing the consultation, DCMS highlights an artificial intelligence partnership involving Moorfields Eye Hospital and the University College London Institute of Ophthalmology, which kicked off back in 2016, as an example of the kinds of beneficial data sharing it wants to encourage. Last year the researchers reported that their AI had been able to predict the development of wet age-related macular degeneration more accurately than clinicians.

The partnership also involved (Google-owned) DeepMind and now Google Health — although the government’s PR doesn’t make mention of the tech giant’s involvement. It’s an interesting omission, given that DeepMind’s name is also attached to a notorious U.K. patient data-sharing scandal, which saw another London-based NHS Trust (the Royal Free) sanctioned by the ICO, in 2017, for improperly sharing patient data with the Google-owned company during the development phase of a clinician support app (which Google is now in the process of discontinuing).

DCMS may be keen to avoid spelling out that its goal for the data reforms — aka to “remove unnecessary barriers to responsible data use” — could end up making it easier for commercial entities like Google to get their hands on U.K. citizens’ medical records.

The sizeable public backlash over the most recent government attempt to requisition NHS users’ medical records — for vaguely defined “research” purposes (aka the “General Practice Data for Planning and Research”, or GPDPR, scheme) — suggests that a government-enabled big-health-data-free-for-all might not be so popular with U.K. voters.

“The government’s data reforms will provide clarity around the rules for the use of personal data for research purposes, laying the groundwork for more scientific and medical breakthroughs,” is how DCMS’ PR skirts the sensitive health data sharing topic.

Elsewhere there’s talk of “reinforc[ing] the responsibility of businesses to keep personal information safe, while empowering them to grow and innovate” — so that sounds like a yes to data security but what about individual privacy and control over what happens to your information?

The government seems to be saying that will depend on other aims — principally economic interests attached to the U.K.’s ability to conduct data-driven research or secure trade deals with other countries that don’t have the same (current) high U.K. standards of data protection.

There are some purely populist flourishes here too — with DCMS couching its ambition for a data regime “based on common sense, not box ticking” — and flagging up plans to beef up penalties for nuisance calls and text messages. Because, sure, who doesn’t like the sound of a crackdown on spam?

Except spam text messages and nuisance calls are a pretty quaint concern to zero in on in an era of apps and data-driven, democracy-disrupting mass surveillance — which was something the outgoing information commissioner raised as a major issue of concern during her tenure at the ICO.

The same populist anti-spam messaging has already been deployed by ministers to attack the need to obtain internet users’ consent for dropping tracking cookies — which the digital minister Oliver Dowden recently suggested he wants to do away with — for all but “high risk” purposes.

Having a system of rights wrapping people’s data that gives them a say over (and a stake in) how it can be used appears to be being reframed in the government’s messaging as irresponsible or even non-patriotic — with DCMS pushing the notion that such rights stand in the way of more important economic or highly generalized “social” goals.

Not that it has presented any evidence for that — or even that the U.K.’s current data protection regime got in the way of (the very ample) data sharing during COVID-19… While negative uses of people’s information are being condensed in DCMS’ messaging to the narrowest possible definition — of spam that’s visible to an individual — never mind how that person got targeted with the nuisance calls/spam texts in the first place.

The government is taking its customary “cake and eat it” approach to spinning its reform plan — claiming it will both “protect” people’s data while also trumpeting the importance of making it really easy for citizens’ information to be handed off to anyone who wants it, so long as they can claim they’re doing some kind of “innovation”, while also larding its PR with canned quotes dubbing the plan “bold” and “ambitious”.

So while DCMS’ announcement says the reform will “maintain” the U.K.’s (currently) world-leading data protection standards, it directly rows back — saying the new regime will (merely) “build on” a few broad-brush “key elements” of the current rules (specifically it says it will keep “principles around data processing, people’s data rights and mechanisms for supervision and enforcement”).

Clearly the devil will be in the detail of the proposals which are due to be published tomorrow morning. So expect more analysis to debunk the spin soon.

But in one specific trailed change DCMS says it wants to move away from a “one-size-fits-all” approach to data protection compliance — and “allow organisations to demonstrate compliance in ways more appropriate to their circumstances, while still protecting citizens’ personal data to a high standard”.

That implies that smaller data-mining operations — DCMS’s PR uses the example of a hairdresser’s but plenty of startups can employ fewer staff than the average barber’s shop — may be able to expect to get a pass to ignore those ‘high standards’ in the future.

Which suggests the U.K.’s “high standards” may, under Dowden’s watch, end up resembling more of a Swiss Cheese…

Data protection is a “how to, not a don’t do”…

The man who is likely to become the U.K.’s next information commissioner, New Zealand’s privacy commissioner John Edwards, was taking questions from a parliamentary committee earlier today, as MPs considered whether to support his appointment to the role.

If he’s confirmed in the job, Edwards will be responsible for implementing whatever new data regime the government cooks up.

Under questioning, he rejected the notion that the U.K.’s current data protection regime presents a barrier to data sharing — arguing that laws like GDPR should rather be seen as a “how to” and an “enabler” for innovation.

“I would take issue with the dichotomy that you presented [about privacy vs data-sharing],” he told the committee chair. “I don’t believe that policymakers and businesses and governments are faced with a choice of share or keep faith with data protection. Data protection laws and privacy laws would not be necessary if it wasn’t necessary to share information. These are two sides of the same coin.

“The UK DPA [data protection act] and UK GDPR they are a ‘how to’ — not a ‘don’t do’. And I think the UK and many jurisdictions have really finally learned that lesson through the COVID-19 crisis. It has been absolutely necessary to have good quality information available, minute by minute. And to move across different organizations where it needs to go, without friction. And there are times when data protection laws and privacy laws introduce friction and I think that what you’ve seen in the UK is that when it needs to things can happen quickly.”

He also suggested that plenty of economic gains could be achieved for the U.K. with some minor tweaks to current rules, rather than a more radical reboot being necessary. (Though clearly setting the rules won’t be up to him; his job will be enforcing whatever new regime is decided.)

“If we can, in the administration of a law which at the moment looks very much like the UK GDPR, that gives great latitude for different regulatory approaches — if I can turn that dial just a couple of points that can make the difference of billions of pounds to the UK economy and thousands of jobs so we don’t need to be throwing out the statute book and starting again — there is plenty of scope to be making improvements under the current regime,” he told MPs. “Let alone when we start with a fresh sheet of paper if that’s what the government chooses to do.”

TechCrunch asked another Edwards (no relation) — Newcastle University’s Lilian Edwards, professor of law, innovation and society — for her thoughts on the government’s direction of travel, as signalled by DCMS’ pre-proposal-publication spin, and she expressed similar concerns about the logic driving the government to argue it needs to rip up the existing standards.

“The entire scheme of data protection is to balance fundamental rights with the free flow of data. Economic concerns have never been ignored, and the current scheme, which we’ve had in essence since 1998, has struck a good balance. The great things we did with data during COVID-19 were done completely legally — and with no great difficulty under the existing rules — so that isn’t a reason to change them,” she told us.

She also took issue with the plan to reshape the ICO “as a quango whose primary job is to ‘drive economic growth’ ” — pointing out that DCMS’ PR fails to include any mention of privacy or fundamental rights, and arguing that “creating an entirely new regulator isn’t likely to do much for the ‘public trust’ that’s seen as declining in almost every poll.”

She also suggested the government is glossing over the real economic damage that would hit the U.K. if the EU decides its “reformed” standards are no longer essentially equivalent to the bloc’s. “[It’s] hard to see much concern for adequacy here; which will, for sure, be reviewed, to our detriment — prejudicing 43% of our trade for a few low value trade deals and some hopeful sell offs of NHS data (again, likely to take a wrecking ball to trust judging by the GPDPR scandal).”

She described the goal of regulating algorithmic bias as “applaudable” — but also flagged the risk of the U.K. falling behind other jurisdictions which are taking a broader look at how to regulate artificial intelligence.

Per DCMS’ press release, the government seems to be intending for an existing advisory body, called the Centre for Data Ethics and Innovation (CDEI), to have a key role in supporting its policymaking in this area — saying that the body will focus on “enabling trustworthy use of data and AI in the real-world”. However it has still not appointed a new CDEI chair to replace Roger Taylor — with only an interim chair appointment (and some new advisors) announced today.

“The world has moved on since CDEI’s work in this area,” argued Edwards. “We realise now that regulating the harmful effects of AI has to be considered in the round with other regulatory tools not just data protection. The proposed EU AI Regulation is not without flaw but goes far further than data protection in mandating better quality training sets, and more transparent systems to be built from scratch. If the UK is serious about regulating it has to look at the global models being floated but right now it looks like its main concerns are insular, short-sighted and populist.”

Patient data privacy advocacy group MedConfidential, which has frequently locked horns with the government over its approach to data protection, also queried DCMS’ continued attachment to the CDEI for shaping policymaking in such a crucial area — pointing to last year’s biased algorithm exam grading scandal, which happened under Taylor’s watch.

(NB: Taylor was also the Ofqual chair, and his resignation from that post in December cited a “difficult summer”, even as his departure from the CDEI leaves an awkward hole now… )

“The culture and leadership of CDEI led to the A-Levels algorithm, why should anyone in government have any confidence in what they say next?” said MedConfidential’s Sam Smith.

New leAD Sports & Health, Tavistock Group fund comes as sport tech market poised for double-digit growth

Sports and health technology investor leAD Sports & Health Tech Partners and private investment organization Tavistock Group have come together to launch the $30 million Lake Nona Sports & Health Tech Fund for early-stage startups in the areas of fan engagement, connected athletes, health and well-being.

In addition to both of those general partners, investors in the fund include Kevin Reid, Andrew White and Harold Primat, leAD co-founder and CEO Christoph Sonnen told TechCrunch.

Founded in 2016, leAD Sports & Health Tech Partners was inspired by Adi Dassler, who founded sportswear company Adidas. Dassler’s family is one of the partners and biggest funders to date, Sonnen said.

Its first fund, called Advantage, invested at the Series A stage and has four companies under it currently, and will eventually have 10 to 15 companies in the portfolio, Anne Joachim, leAD’s finance director, said.

The Lake Nona fund will invest in seed and pre-Series A to support founders by bridging the gap between those two rounds to help them grow, she added. The fund is expected to be able to invest in 20 companies with smaller ticket sizes.

“When we moved to Nona, we were looking to integrate between sports and health tech, especially in the areas of mindfulness and longevity, which are two hot topics we are seeing,” Sonnen said.

The new fund comes as the global sports technology market is poised to grow at a compounded annual growth rate of 17.5% to reach $40.2 billion by 2026, up from a valuation of around $17.9 billion in 2021, according to consultancy ResearchandMarkets.com.

Sonnen expects sports, esports and healthcare to be one big trend, driven by the global pandemic, that he doesn’t see stopping soon. For example, rather than people going back to the gym exclusively, it will be a hybrid of workouts and a bigger emphasis on sleep and recovery.

Of the technology out there, Joachim says devices enabling users to train in different ways is one of the more faster-moving segments.

“We learned during COVID about training without the gym, and we see more fascinating things coming out of that,” she added. “We are already seeing new technologies really disrupt the market and expect this to continue over the next couple of the years. We are also seeing more companies focused on mindfulness and training the brain like your body.”

 

Startups should look to state-of-the-art tech to tackle diseases affecting women

Startups devoted to reproductive and women’s health are on the rise. However, most of them deal with women’s fertility: birth control, ovulation and the inability to conceive. The broader field of women’s health remains neglected.

Historically, most of our understanding of ailments comes from the perspective of men and is overwhelmingly based on studies using male patients. Until the early 1990s, women of childbearing age were kept out of drug trial studies, and the resulting bias has been an ongoing issue in healthcare. Other issues include underrepresentation of women in health studies, trivialization of women’s physical complaints (which is relevant to the misdiagnosis of endometriosis, among other conditions), and gender bias in the funding of research, especially in research grants.

For example, several studies have shown that when we look at National Institutes of Health funding, a disproportionate share of its resources goes to diseases that primarily affect men — at the expense of those that primarily affect women. In 2019, studies of NIH funding based on disease burden (as estimated by the number of years lost due to an illness) showed that male-favored diseases were funded at twice the rate of female-favored diseases.

Let’s take endometriosis as an example. Endometriosis is a disease where endometrial-like tissue (‘‘lesions’’) can be found outside the uterus. Endometriosis is a condition that only occurs in individuals with uteruses and has been less funded and less studied than many other conditions. It can cause chronic pain, fatigue, painful intercourse and infertility. Although the disease may affect one out of 10 women, diagnosis is still very slow, and the disease is confirmed only by surgery.

There is no non-invasive test available. In many cases, a woman is diagnosed only due to her infertility, and the diagnosis can take up to 10 years. Even after diagnosis, the understanding of disease biology and progression is poor, as well as the understanding of the relationships to other lesion diseases, such as adenomyosis. Current treatments include surgical removal of lesions and drugs that suppress ovarian hormone (mainly estrogen) production.

However, there are changes in the works. The NIH created the women’s health research category in 1994 for annual budgeting purposes and, in 2019, it was updated to include research that is relevant to women only. In acknowledging the widespread male bias in both human and animal studies, the NIH mandated in 2016 that grant applicants would be required to recruit male and female participants in their protocols. These changes are slow, and if we look at endometriosis, it received just $7 million in NIH funding in the fiscal year 2018, putting it near the very bottom of NIH’s 285 disease/research areas.

It is interesting to note that critical changes are coming from other sources, and not so much from the funding agencies or the pharmaceutical industry. The push is coming from patients and physicians themselves that meet the diseases regularly. We see pharmaceutical companies (such as Eli Lilly and AbbVie) in the women’s healthcare space following the lead of their patients and slowly expanding their R&D base and doubling efforts to expand beyond reproductive health into other key women’s health areas.

New technological innovations targeting endometriosis are being funded via private sources. In 2020, women’s health finally emerged as one of the most promising areas of investment. These include (not an exhaustive list by any means) diagnostics companies such as NextGen Jane, which raised a $9 million Series A in April 2021 for its “smart tampon,” and DotLab, a non-invasive endometriosis testing startup, which raised $10 million from investors last July. Other notable advances include the research-study app Phendo that tracks endometriosis, and Gynica, a company focused on cannabis-based treatments for gynecological issues.

The complexity of endometriosis is such that any single biotech startup may find it challenging to go it alone. One approach to tackle this is through collaborations. Two companies, Polaris Quantum Biotech and Auransa, have teamed up to tackle the endometriosis challenge and other women’s specific diseases.

Using data, algorithms and quantum computing, this collaboration between two female-led AI companies integrates the understanding of disease biology with chemistry. Moreover, they are not stopping at in silico; rather, this collaboration aims to bring therapeutics to patients.

New partnerships can majorly impact how fast a field like women’s health can advance. Without such concerted efforts, women-centric diseases such as endometriosis, triple-negative breast cancer and ovarian cancer, to name a few, may remain neglected and result in much-needed therapeutics not moving into clinics promptly.

Using state-of-the-art technologies on complex women’s diseases will allow the field to advance much faster and can put drug candidates into clinics in a few short years, especially with the help of patient advocacy groups, research organizations, physicians and out-of-the-box funding approaches such as crowdfunding from the patients themselves.

We believe that going after the women’s health market is a win-win for the patients as well as from the business perspective, as the global market for endometriosis drugs alone is expected to reach $2.2 billion in the next six years.

Israel’s DiA gets $14M to expand AI-driven ultrasound analysis

Israel-based AI healthtech company, DiA Imaging Analysis, which is using deep learning and machine learning to automate analysis of ultrasound scans, has closed a $14 million Series B round of funding.

Backers in the growth round, which comes three years after DiA last raised, include new investors Alchimia Ventures, Downing Ventures, ICON Fund, Philips and XTX Ventures — with existing investors also participating including CE Ventures, Connecticut Innovations, Defta Partners, Mindset Ventures, and Dr Shmuel Cabilly. In total, it’s taken in $25M to date.

The latest financing will go on expanding its product range and going after new and expanded partnerships with ultrasound vendors, PACS/Healthcare IT companies, resellers, and distributors while continuing to build out its presence across three regional markets.

The healthtech company sells AI-powered support software to clinicians and healthcare professionals to help them capture and analyze ultrasound imagery — a process which, when done manually, requires human expertise to visually interpret scan data. So DiA touts its AI technology as “taking the subjectivity out of the manual and visual estimation processes being performed today”.

It has trained AIs to assess ultrasound imagery so as to automatically hone in on key details or identify abnormalities — offering a range of products targeted at different clinical requirements associated with ultrasound analysis, including several focused on the heart (where its software can, for example, be used to measure and analyze aspects like ejection fraction; right ventricle size and function; plus perform detection assistance for coronary disease, among other offerings).

It also has a product that leverages ultrasound data to automate measurement of bladder volume.

DiA claims its AI software imitates the way the human eye detects borders and identifies motion — touting it as an advance over “subjective” human analysis that also brings speed and efficiency gains.

“Our software tools are supporting tool for clinicians needing to both acquiring the right image and interpreting ultrasound data,” says CEO and co-founder Hila Goldman-Aslan.

DiA’s AI-based analysis is being used in some 20 markets currently — including in North America and Europe (in China it also says a partner gained approval for use of its software as part of their own device) — with the company deploying a go-to-market strategy that involves working with channel partners (such as GE, Philips and Konica Minolta) which offer the software as an add on on their ultrasound or PACS systems.

Per Goldman-Aslan, some 3,000+ end-users have access to its software at this stage.

“Our technology is vendor neutral and cross platform therefore runs on any ultrasound device or healthcare IT systems. That is why you can see we have more than 10 partnerships with both device companies as well as healthcare IT/PACS companies. There is no other startup in this space I know that has these capabilities, commercial traction or many FDA/CE AI-based solutions,” she says, adding: “Up to date we have 7 FDA/CE approved solutions for cardiac and abdominal areas and more are on the way.”

An AI’s performance is of course only as good as the data-set it’s been trained on. And in the healthcare space efficacy is an especially crucial factor — given that any bias in training data could lead to a flawed model which misdiagnoses or under/over-estimates disease risks in patient groups who were not well represented in the training data.

Asked about how its AIs were trained to be able to spot key details in ultrasound imagery, Goldman-Aslan told TechCrunch: “We have access to hundreds of thousands ultrasound images through many medical facilities therefore have the ability to move fast from one automatic area to another.”

“We collect diverse population data with different pathology, as well as data from various devices,” she added.

“There is a Phrase ‘Garbage in Garbage out’. The key is not to bring garbage in,” she also told us. “Our data sets are tagged and classified by several physicians and technicians, each are experts with many years on experience.

“We also have a strong rejection system that rejects images that was taken incorrectly. This is how we overcome the subjectivity of how data was acquired.”

It’s worth noting that the FDA clearances obtained by DiA are 510(k) Class II approvals — and Goldman-Aslan confirmed to us that it has not (and does not intend) to apply for Premarket Approval (PMA) for its products from the FDA.

The 510(k) route is widely used for gaining approval for putting many types of medical devices into the US market. However it has been criticized as a light-touch regime — and certainly does not entail the same level of scrutiny as the more rigorous PMA process.

The wider point is that regulation of fast-developing AI technologies tends to lag behind developments in how they’re being applied — including as they push increasingly into the healthcare space where there’s certainly huge promise but also serious risks if they fail to live up to the glossy marketing — meaning there is still something of a gap between the promises made by device makers and how much regulatory oversight their tools actually get.

In the European Union, for example, the CE scheme — which sets out some health, safety and environmental standards for devices — can simply require a manufacturer to self declare conformity, without any independent verification they’re actually meeting the standards they claim, although some medical devices can require a degree of independent assessment of conformity under the CE scheme. But it’s not considered a rigorous regime for regulating the safety of novel technologies like AI.

Hence the EU is now working on introducing an additional layer of conformity assessments specifically for applications of AI deemed ‘high risk’ — under the incoming Artificial Intelligence Act.

Healthcare use-cases, like DiA’s AI-based ultrasound analysis, would almost certainly fall under that classification so would face some additional regulatory requirements under the AIA. For now, though, the on-the-table proposal is being debated by EU co-legislators and a dedicated regulatory regime for risky applications of AI remains years out of coming into force in the region.

Back to the suture: The future of healthcare is in the home

The pandemic has highlighted some of the brightest spots — and greatest areas of need — in America’s healthcare system. On one hand, we’ve witnessed the vibrancy of America’s innovation engine, with notable contributions by U.S.-based scientists and companies for vaccines and treatments.

On the other hand, the pandemic has highlighted both the distribution challenges and cost inefficiencies of the healthcare system, which now accounts for nearly a fifth of our GDP — far more than any other country — yet lags many other developed nations in clinical outcomes.

Many of these challenges stem from a lack of alignment between payment and incentive models, as well as an overreliance on hospitals as centers for care delivery. A third of healthcare costs are incurred at hospitals, though at-home models can be more effective and affordable. Furthermore, most providers rely on fee for service instead of preventive care arrangements.

These factors combine to make care in this country reactive, transactional and inefficient. We can improve both outcomes and costs by moving care from the hospital back to the place it started — at home.

Right now in-home care accounts for only 3% of the healthcare market. We predict that it will grow to 10% or more within the next decade.

In-home care is nothing new. In the 1930s, over 40% of physician-patient encounters took place in the home, but by the 1980s, that figure dropped to under 1%, driven by changes in health economics and technologies that led to today’s hospital-dominant model of care.

That 50-year shift consolidated costs, centralized access to specialized diagnostics and treatments, and created centers of excellence. It also created a transition from proactive to reactive care, eliminating the longitudinal relationship between patient and provider. In today’s system, patients are often diagnosed by and receive treatment from individual doctors who do not consult one another. These highly siloed treatments often take place only after the patient needs emergency care. This creates higher costs — and worse outcomes.

That’s where in-home care can help. Right now in-home care accounts for only 3% of the healthcare market. We predict that it will grow to 10% or more within the next decade. This growth will improve the patient experience, achieve better clinical outcomes and reduce healthcare costs.

To make these improvements, in-home healthcare strategies will need to leverage next-generation technology and value-based care strategies. Fortunately, the window of opportunity for change is open right now.

Five factors driving the opportunity for change

Over the last few years, five significant innovations have created new incentives to drive dramatic changes in the way care is delivered.

  1. Technologies like remote patient monitoring (RPM) and telemedicine have matured to a point that can be deployed at scale. These technologies enable providers to remotely manage patients in a proactive, long-term relationship from the comfort of their homes and at a reduced cost.

This Week in Apps: OnlyFans bans sexual content, SharePlay delayed, TikTok questioned over biometric data collection

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.

The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.

Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.

This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.

Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters

Top Stories

OnlyFans to ban sexually explicit content

OnlyFans logo displayed on a phone screen and a website

(Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images)

Creator platform OnlyFans is getting out of the porn business. The company announced this week it will begin to prohibit any “sexually explicit” content starting on October 1, 2021 — a decision it claimed would ensure the long-term sustainability of the platform. The news angered a number of impacted creators who weren’t notified ahead of time and who’ve come to rely on OnlyFans as their main source of income.

However, word is that OnlyFans was struggling to find outside investors, despite its sizable user base, due to the adult content it hosts. Some VC firms are prohibited from investing in adult content businesses, while others may be concerned over other matters — like how NSFW content could have limited interest from advertisers and brand partners. They may have also worried about OnlyFans’ ability to successfully restrict minors from using the app, in light of what appears to be soon-to-come increased regulations for online businesses. Plus, porn companies face a number of other issues, too. They have to continually ensure they’re not hosting illegal content like child sex abuse material, revenge porn or content from sex trafficking victims — the latter which has led to lawsuits at other large porn companies.

The news followed a big marketing push for OnlyFans’ porn-free (SFW) app, OFTV, which circulated alongside reports that the company was looking to raise funds at a $1 billion+ valuation. OnlyFans may not have technically needed the funding to operate its current business — it handled more than $2 billion in sales in 2020 and keeps 20%. Rather, the company may have seen there’s more opportunity to cater to the “SFW” creator community, now that it has big names like Bella Thorne, Cardi B, Tyga, Tyler Posey, Blac Chyna, Bhad Bhabie and others on board.

U.S. lawmakers demand info on TikTok’s plans for biometric data collection

The TikTok logo is seen on an iPhone 11 Pro max

The TikTok logo is seen on an iPhone 11 Pro max. Image Credits: Nur Photo/Getty Images

U.S. lawmakers are challenging TikTok on its plans to collect biometric data from its users. TechCrunch first reported on TikTok’s updated privacy policy in June, where the company gave itself permission to collect biometric data in the U.S., including users’ “faceprints and voiceprints.” When reached for comment, TikTok could not confirm what product developments necessitated the addition of biometric data to its list of disclosures about the information it automatically collects from users, but said it would ask for consent in the case such data collection practices began.

Earlier this month, Senators Amy Klobuchar (D-MN) and John Thune (R-SD) sent a letter to TikTok CEO Shou Zi Chew, which said they were “alarmed” by the change, and demanded to know what information TikTok will be collecting and what it plans to do with the data. This wouldn’t be the first time TikTok got in trouble for excessive data collection. Earlier this year, the company paid out $92 million to settle a class-action lawsuit that claimed TikTok had unlawfully collected users’ biometric data and shared it with third parties.

Weekly News

Platforms: Apple

Image Credits: Apple

  • ⭐ Apple told developers that some of the features it announced as coming in iOS 15 won’t be available at launch. This includes one of the highlights of the new OS, SharePlay, a feature that lets people share music, videos and their screen over FaceTime calls. Other features that will come in later releases include Wallet’s support for ID cards, the App Privacy report and others that have yet to make it to beta releases.
  • Apple walked back its controversial Safari changes with the iOS 15 beta 6 update. Apple’s original redesign had shown the address bar at the bottom of the screen, floating atop the page’s content. Now the tab bar will appear below the page’s content, offering access to its usual set of buttons as when it was at the top. Users can also turn off the bottom tab bar now and revert to the old, Single Tab option that puts the address bar back at the top as before.
  • In response to criticism over its new CSAM detection technology, Apple said the version of NeuralHash that was reverse-engineered by a developer, Asuhariet Ygvar, was a generic version, and not the complete version that will roll out later this year.
  • The Verge dug through over 800 documents from the Apple-Epic trial to find the best emails, which included dirt on a number of other companies like Netflix, Hulu, Sony, Google, Nintendo, Valve, Microsoft, Amazon and more. These offered details on things like Netflix’s secret arrangement to pay only 15% of revenue, how Microsoft also quietly offers a way for some companies to bypass its full cut, how Apple initially saw the Amazon Appstore as a threat and more.

Platforms: Google

  • A beta version of the Android Accessibility Suite app (12.0.0) which rolled out with the fourth Android beta release added something called “Camera Switches” to Switch Access, a toolset that lets you interact with your device without using the touchscreen. Camera Switches allows users to navigate their phone and use its features by making face gestures, like a smile, open mouth, raised eyebrows and more.
  • Google announced its Pixel 5a with 5G, the latest A-series Pixel phone, will arrive on August 27, offering IP67 water resistance, long-lasting Adaptive Battery, Pixel’s dual-camera system and more, for $449. The phone makes Google’s default Android experience available at a lower price point than the soon to arrive Pixel 6.
  • An unredacted complaint from the Apple-Epic trial revealed that Google had quietly paid developers hundreds of millions of dollars via a program known as “Project Hug,” (later “Apps and Games Velocity Program”) to keep their games on the Play Store. Epic alleges Google launched the program to keep developers from following its lead by moving their games outside the store.

Augmented Reality

  • Snap on Thursday announced it hired its first VP of Platform Partnerships to lead AR, Konstantinos Papamiltiadis (“KP”). The new exec will lead Snap’s efforts to onboard partners, including individual AR creators building via Lens Studio as well as large companies that incorporate Snapchat’s camera and AR technology (Camera Kit) into their apps. KP will join in September, and report to Ben Schwerin, SVP of Content and Partnerships.

Fintech

  • Crypto exchange Coinbase will enter the Japanese market through a new partnership with Japanese financial giant Mitsubishi UFJ Financial Group (MUFG). The company said it plans to launch other localized versions of its existing global services in the future.

Social

Image Credits: Facebook

  • Facebook launched a “test” of Facebook Reels in the U.S. on iOS and Android. The new feature brings the Reels experience to Facebook, allowing users to create and share short-form video content directly within the News Feed or within Facebook Groups. Instagram Reels creators can also now opt in to have their Reels featured on users’ News Feed. The company is heavily investing its its battle with TikTok, even pledging that some portion of its $1 billion creator fund will go toward Facebook Reels.
  • Twitter’s redesign of its website and app was met with a lot of backlash from users and accessibility experts alike. The company choices add more visual contrast between various elements and may have helped those with low vision. But for others, the contrast is causing strain and headaches. Experts believe accessibility isn’t a one-size fits all situation, and Twitter should have introduced tools that allowed people to adjust their settings to their own needs.
  • The pro-Trump Twitter alternative Gettr’s lack of moderation has allowed users to share child exploitation images, according to research from the Stanford Internet Observatory’s Cyber Policy Center.
  • Pinterest rolled out a new set of more inclusive search filters that allow people to find styles for different types of hair textures — like coily, curly, wavy, straight, as well as shaved or bald and protective styles. 

Photos

  • Photoshop for iPad gained new image correction tools, including the Healing Brush and Magic Wand, and added support for connecting an iPad to external monitors via HDMI or USB-C. The company also launched a Photoshop Beta program on the desktop.

Messaging

  • WhatsApp is being adopted by the Taliban to spread its message across Afghanistan, despite being on Facebook’s list of banned organizations. The company says it’s proactively removing Taliban content — but that may be difficult to do since WhatsApp’s E2E encryption means it can’t read people’s texts. This week, Facebook shut down a Taliban helpline in Kabul, which allowed civilians to report violence and looting, but some critics said this wasn’t actually helping local Afghans, as the group was now in effect governing the region.
  • WhatsApp is also testing a new feature that will show a large preview when sharing links, which some suspect may launch around the time when the app adds the ability to have the same account running on multiple devices.

Streaming & Entertainment

  • Netflix announced it’s adding spatial audio support on iPhone and iPad on iOS 14, joining other streamers like HBO Max, Disney+ and Peacock that have already pledged to support the new technology. The feature will be available to toggle on and off in the Control Center, when it arrives.
  • Blockchain-powered streaming music service Audius partnered with TikTok to allow artists to upload their songs using TikTok’s new SoundKit in just one click.
  • YouTube’s mobile app added new functionality that allows users to browse a video’s chapters, and jump into the chapter they want directly from the search page.
  • Spotify’s Anchor app now allows users in global markets to record “Music + Talk” podcasts, where users can combine spoken word recordings with any track from Spotify’s library of 70 million songs for a radio DJ-like experience.
  • Podcasters are complaining that Apple’s revamped Podcasts platform is not working well, reports The Verge. Podcasts Connect has been buggy, and sports a confusing interface that has led to serious user errors (like entire shows being archived). And listeners have complained about syncing problems and podcasts they already heard flooding their libraries.

Dating

  • Tinder announced a new feature that will allow users to voluntarily verify their identity on the platform, which will allow the company to cross-reference sex offender registry data. Previously, Tinder would only check this database when a user signed up for a paid subscription with a credit card.

Gaming

Image Source: The Pokémon Company

  • Pokémon Unite will come to iOS and Android on September 22, The Pokémon Company announced during a livestream this week. The strategic battle game first launched on Nintendo Switch in late July.
  • Developer Konami announced a new game, Castlevania: Grimoire of Souls, which will come exclusively to Apple Arcade. The game is described as a “full-fledged side-scrolling action game,” featuring a roster of iconic characters from the classic game series. The company last year released another version of Castelvania on the App Store and Google Play.
  • Dragon Ball Z: Dokkan Battle has now surpassed $3 billion in player spending since its 2015 debut, reported Sensor Tower. The game from Bandai Namco took 20 months to reach the figure after hitting the $2 billion milestone in 2019. The new landmark sees the game joining other top-grossers, including Clash Royale, Lineage M and others.
  • Sensor Tower’s mobile gaming advertising report revealed data on top ad networks in the mobile gaming market, and their market share. It also found puzzle games were among the top advertisers on gaming-focused networks like Chartboost, Unity, IronSource and Vungle. On less game-focused networks, mid-core games were top titles, like Call of Duty: Mobile and Top War. 

Image Credits: Sensor Tower

Health & Fitness

  • Apple is reportedly scaling back HealthHabit, an internal app for Apple employees that allowed them to track fitness goals, talk to clinicians and coaches at AC Wellness (a doctors’ group Apple works with) and manage hypertension. According to Insider, 50 employees had been tasked to work on the project.
  • Samsung launched a new product for Galaxy smartphones in partnership with healthcare nonprofit The Commons Project, that allows U.S. users to save a verifiable copy of their vaccination card in the Samsung Pay digital wallet.

Image Credits: Samsung

Adtech

Government & Policy

  • China cited 43 apps, including Tencent’s WeChat and an e-reader from Alibaba, for illegally transferring user data. The regulator said the apps had transferred users location data and contact list and harassed them with pop-up windows. The apps have until August 25 to make changes before being punished.

Security & Privacy

  • A VICE report reveals a fascinating story about a jailbreaking community member who had served as a double agent by spying for Apple’s security team. Andrey Shumeyko, whose online handles included JVHResearch and YRH04E, would advertise leaked apps, manuals and stolen devices on Twitter and Discord. He would then tell Apple things like which Apple employees were leaking confidential info, which reporters would talk to leakers, who sold stolen iPhone prototypes and more. Shumeyko decided to share his story because he felt Apple took advantage of him and didn’t compensate him for the work.

Funding and M&A

💰 South Korea’s GS Retail Co. Ltd will buy Delivery Hero’s food delivery app Yogiyo in a deal valued at 800 billion won ($685 million USD). Yogiyo is the second-largest food delivery app in South Korea, with a 25% market share.

💰 Gaming platform Roblox acquired a Discord rival, Guilded, which allows users to have text and voice conversations, organize communities around events and calendars and more. Deal terms were not disclosed. Guilded raised $10.2 million in venture funding. Roblox’s stock fell by 7% after the company reported earnings this week, after failing to meet Wall Street expectations.

💰 Travel app Hopper raised $175 million in a Series G round of funding led by GPI Capital, valuing the business at over $3.5 billion. The company raised a similar amount just last year, but is now benefiting from renewed growth in travel following COVID-19 vaccinations and lifting restrictions.

💰 Indian quiz app maker Zupee raised $30 million in a Series B round of funding led by Silicon Valley-based WestCap Group and Tomales Bay Capital. The round values the company at $500 million, up 5x from last year.

💰 Danggeun Market, the publisher of South Korea’s hyperlocal community app Karrot, raised $162 million in a Series D round of funding led by DST Global. The round values the business at $2.7 billion and will be used to help the company launch its own payments platform, Karrot Pay.

💰 Bangalore-based fintech app Smallcase raised $40 million in Series C funding round led by Faering Capital and Premji Invest, with participation from existing investors, as well as Amazon. The Robinhood-like app has over 3 million users who are transacting about $2.5 billion per year.

💰 Social listening app Earbuds raised $3 million in Series A funding led by Ecliptic Capital. Founded by NFL star Jason Fox, the app lets anyone share their favorite playlists, livestream music like a DJ or comment on others’ music picks.

💰 U.S. neobank app One raised $40 million in Series B funding led by Progressive Investment Company (the insurance giant’s investment arm), bringing its total raise to date to $66 million. The app offers all-in-one banking services and budgeting tools aimed at middle-income households who manage their finances on a weekly basis.

Public Markets

📈 Indian travel booking app ixigo is looking to raise Rs 1,600 crore in its initial public offering, The Economic Times reported this week.

📉 Trading app Robinhood disappointed in its first quarterly earnings as a publicly traded company, when it posted a net loss of $502 million, or $2.16 per share, larger than Wall Street forecasts. This overshadowed its beat on revenue ($565 million versus $521.8 million expected) and its more than doubling of MAUs to 21.3 million in Q2.  Also of note, the company said dogecoin made up 62% of its crypto revenue in Q2.

Downloads

Polycam (update)

Image Credits: Polycam

3D scanning software maker Polycam launched a new 3D capture tool, Photo Mode, that allows iPhone and iPad users to capture professional-quality 3D models with just an iPhone. While the app’s scanner before had required the use of the lidar sensor built into newer devices like the iPhone 12 Pro and iPad Pro models, the new Photo Mode feature uses just an iPhone’s camera. The resulting 3D assets are ready to use in a variety of applications, including 3D art, gaming, AR/VR and e-commerce. Data export is available in over a dozen file formats, including .obj, .gtlf, .usdz and others. The app is a free download on the App Store, with in-app purchases available.

Jiobit (update)

Jiobit, the tracking dongle acquired by family safety and communication app Life360, this week partnered with emergency response service Noonlight to offer Jiobit Protect, a premium add-on that offers Jiobit users access to an SOS Mode and Alert Button that work with the Jiobit mobile app. SOS Mode can be triggered by a child’s caregiver when they detect — through notifications from the Jiobit app — that a loved one may be in danger. They can then reach Noonlight’s dispatcher who can facilitate a call to 911 and provide the exact location of the person wearing the Jiobit device, as well as share other details, like allergies or special needs, for example.

Tweets

When your app redesign goes wrong…

Image Credits: Twitter.com

Prominent App Store critic Kosta Eleftheriou shut down his FlickType iOS app this week after too many frustrations with App Review. He cited rejections that incorrectly argued that his app required more access than it did — something he had successfully appealed and overturned years ago. Attempted follow-ups with Apple were ignored, he said. 

Image Credits: Twitter.com

Anyone have app ideas?

Medical supply marketplace startup bttn. sews up additional $5M seed

Coming off a $1.5 million seed round in June, bttn. announced Thursday that it secured another $5 million extension, led by FUSE, to the round to give it a $26.5 million post-money valuation.

The Seattle-based company was founded in March 2021 by JT Garwood and Jack Miller after seeing the challenges medical organizations had during the global pandemic to not only find supplies, but also get fair prices for them.

“We went into this building on the pain points customers had dealing with a system that is so archaic and outdated — most were still faxing in order forms and keeping closets full of supplies, but not knowing what was there,” Garwood, CEO, told TechCrunch.

Bttn. is going after the U.S. wholesale medical supply market, which is predicted to be valued at $243.3 billion by the end of 2021, according to IBISWorld. The company created a business-to-business e-commerce platform with a variety of high-quality medical supplies, saving customers an average of between 20% and 40%, while providing a better ordering and shipping experience, Garwood said.

It now boasts more than 300 customers, including individual practices and surgical centers, and multiple government contracts. It is also currently the preferred supplier for over 17 healthcare associations across the country, Garwood said. In addition to expanding into dental supplies, bttn. is also attracting customers like senior living facilities and home and hospice care.

Garwood intends to use the funds to expand bttn.’s technology, sales and operations teams, and increase its partnerships. The company is also adding new features like a portal to track shipments more easily, better order automation and improve the ability to control when supplies will get to them.

Bttn. is also analyzing more of the data coming in from its marketplace to recognize where the trends are coming from, including hospitalization rates, to share with customers. For example, if hospitals are overcrowded, supply shortages will follow, Garwood said.

“The medical supply industry was built on inequity, and we have a sense of duty to build a product that enables a better future for our customers,” he added. “We can proactively let customers know that spikes are expected, provide them with correct information and give that power back to the consumers and healthcare providers in ways they never had before.”

Whereas bttn.’s first seed round was “about pouring gas on the fire,” partnering with FUSE this time around was an easy decision for Garwood, who said the firm is bringing new assets to the table.

Brendan Wales, general partner at FUSE, said via email that his firm backs promising entrepreneurs building businesses in the Pacific Northwest and discovered bttn. before they announced any funding.

He said there is massive consumerization of healthcare, most evident on the patient side for years, but now becoming so on the provider side. Medical office employees are looking for the same type of customer experience they get from online businesses they frequently shop at, and bttn. “has a relentless drive to provide the same type of experiences and interactions to health providers.”

“We fell in love with the idea of providing a transparent and delightful customer experience to health providers, something that has been sorely lacking,” Wales added. “That, tied in with a young and ambitious team, made it so that our entire partnership worked tirelessly to partner with them.”