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Kaiser CEO Bernard Tyson Dies Unexpectedly, Here Is His Impact

In stunning news, healthcare lost a major leader today. Bernard J. Tyson, the Chairman and CEO of Kaiser Permanente, unexpectedly passed away in his sleep at just 60 years young. Unexpected is an understatement since it was only yesterday when Tyson was a guest speaker at the AfroTech gathering in Oakland as shown by this tweet:

                               

And three days prior, he had been in New York City to speak at the Fast Company Innovation Festival as seen in this picture:

Today In: Innovation

Discussing and advocating for key health issues was a big part of Tyson’s life. Through my career, I have met many hospital, health clinic, and insurance executives, and Tyson without a doubt has stood out from most of the rest. He was far from a “mind the store and pick up the paycheck” CEO. Sure, we can rattle off what happened to the typical metrics used to measure hospital and insurance CEO’s since he became Kaiser Permanente’s CEO in 2013 and it’s Chairman of the board of directors in 2014. Kaiser Permanente went from having 9.1 million members to 12.3 million, employing a workforce of 174,000 to 218,000, and generating $53 billion in annual revenues to $82.8 billion. These are all very impressive jumps but do not begin to capture the larger and what I think are the more important steps that have occurred.

Tyson has helped Kaiser Permanente become a leader in transforming how healthcare systems can have a greater impact on population health. Historically, many hospitals and much of the health care system in the U.S. have been way too focused on inpatient and “sick” care, because surprise, surprise, that’s where the immediate money seems to be. You can make a whole lot more money today trying to fix a medical problem (and even failing horribly to fix it) than preventing the problem in the first place.

This has made much of healthcare far too reactive, waiting for problems to occur, too focused on repairing people after they have already been broken. It’s like waiting at the of the wall for Humpty Dumpty to fall rather than helping him down from the wall or at least installing some seat belts. It can also be analogous to waiting for a car to fall into pieces before you take it (or rather carry it in a bag) to the shop and ask the mechanic, “hey, can you do something about patching everything together? I need to drive to a date tonight.”

Under Tyson’s leadership, Kaiser Permanente has taken major steps to expand the role of health care beyond the walls of hospitals and clinics. For example, as I reported previously for Forbes, there are the ongoing initiatives to address obesity and homelessness in the communities surrounding Kaiser facilities. Tyson covers the latter in this Kaiser Permanente video:

                                  

Another example is their first-of-its-kind partnership with the National Basketball Association (NBA) to tackle (or rather, since it’s basketball, assist with) children’s health issues, which I also have written about for Forbes.

Then there’s climate change, which for Pete’s and everyone else’s sake exists. Recognizing the impact that all of their facilities and many employees can have on pollution and the climate, Kaiser Permanente has been taking steps to become carbon neutral by 2020.

If this doesn’t sound like your typical hospital system or clinic, it isn’t. Tyson hasn’t been your typical healthcare system CEO either. When I spoke to Tyson earlier this year, the conversation was more about a vision of how healthcare should be and what a good healthcare system should be doing rather than a review of how great things already are. He didn’t dwell on dollar signs and listing the clinical services that Kaiser and its many physicians offer. Instead, he talked at length about how Kaiser was trying to not just be reactive but rather address the “social determinants of health” such as “improving basic infrastructure, promoting healthy eating, working on exercise, and taking care of the key ingredients to promoting health.” As he emphasized, “great health care is not just engaged with treatment.”

Tyson also pointed to a part of the body that healthcare systems frequently neglect. No, not the feet or the spleen. It’s the head or more specifically the mind, which incidentally should be connected to the rest of your body. As Tyson mentioned, Kaiser has been “extremely focused on the mind, as in mental health and well-being,” and “looking at the whole person.” He spoke of the “comprehensive package, looking at health and health care.” Again, while healthcare systems may talk about mental health and well-being, talk is cheap. They often don’t mind the gap or rather address the gap in taking care of the mind in the community. How many have actually invested in community well-being programs as Kaiser Permanente has?

Of course, Kaiser Permanente does have strong incentives to keep its millions upon millions of members healthy since it serves the dual purpose of insurer and healthcare system. However, this dual role alone may not necessarily lead to transformative change. When you talk to Tyson, you never got the sense that he was just spewing platitudes. Rather, expanding healthcare these directions seemed to be a passion.

For example, take a look at his experiences as a child. As he related to me, he was “greatly impacted by a wonderful mother, who was sick all of my life and wonderful doctor who take care of her and us.” This combined with the fact that his “father was a minister” meant that his “line of sight was always the community of the congregation. The community was the family.” He spoke of “having resources in the community and encouragement with multiple ‘moms’ who raised me as a child. The community came together,” and offered “a support system that you can rely on, that was in your corner,” that was encouraging, “you to be all that you can be.”

Certainly, Tyson was much more than the color of his skin. Nevertheless, in this day and age, color of the skin still unfortunately can be a major barrier in healthcare. It was an important step that Tyson, as a racial minority, became the leader of the largest nonprofit health plan and integrated delivery system in the United States. This brought a little more demographic diversity to healthcare leadership, which remains way too homogeneous. If you look at pictures of many healthcare system executives, the colors of the neckties are often more diverse that the colors of the skin. Tyson helped get many people more used to seeing an effective and forward-thinking healthcare system leader from a different background.

Tyson didn’t shy away from talking about how race, ethnicity, gender, and sexual orientation either. These demographic characteristics still unfortunately affect healthcare inside and outside hospital and clinic walls. In fact, he had strong interests in reducing disparities of care as well and said, “The fact that someone may not be getting what they should be getting because color of skin or sexual orientation is unacceptable. Period. No sentence to follow.”

The Kaiser Board of Directors has named Gregory A. Adams to fill Tyson’s shoes as Chairman and CEO on an interim basis. These are certainly big shoes to fill. Adams is no stranger to the Kaiser system as he had been reporting to Tyson as the Executive Vice President and Group President, overseeing all eight Kaiser Permanente Regions that includes 38 hospitals and 651 medical office facilities. Additionally, Adams has led Kaiser Permanente’s national Medicare care delivery strategy and was responsible for Kaiser Permanente’s partnership with the NBA. Adams appears in this video covering the launch of the NBA partnership:

                                

Adams has been with Kasier Permanente since 1999, beginning at Kaiser Permanente in Southern California and subsequently holding positions with increasing leadership responsibility. Adams’ Kaiser Permanente biography includes more information on his background.

In a statement, Ed Pei, Kaiser Permanente board member and Chair of its Executive Committee and the Governance, Accountability and Nominating Committee, said: “Bernard was an exceptional colleague, a passionate leader, and an honorable man. We will greatly miss him. The board has full confidence in Greg Adams’ ability to lead Kaiser Permanente through this unexpected transition.”

Indeed, in his five years as CEO and over 30 years in the Kaiser system, Tyson made a major impact on healthcare that went well beyond hospital and clinic walls in many ways. Unfortunately, we won’t be able to see all that he could have done with more years at the helm.

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I am a writer, journalist, professor, systems modeler, computational and digital health expert, avocado-eater, and entrepreneur, not always in that order. Currently, I am a Professor of Health Policy and Management at the City University of New York (CUNY), Executive Director of PHICOR (@PHICORteam), Associate Professor at the Johns Hopkins Carey Business School, and founder and CEO of Symsilico. My previous positions include serving as Executive Director of the Global Obesity Prevention Center (GOPC) at Johns Hopkins University, Associate Professor of International Health at the Johns Hopkins Bloomberg School of Public Health, Associate Professor of Medicine and Biomedical Informatics at the University of Pittsburgh, and Senior Manager at Quintiles Transnational, working in biotechnology equity research at Montgomery Securities, and co-founding a biotechnology/bioinformatics company. My work involves developing computational approaches, models, and tools to help health and healthcare decision makers in all continents (except for Antarctica) and has been supported by a wide variety of sponsors such as the Bill and Melinda Gates Foundation, the NIH, AHRQ, CDC, UNICEF, USAID and the Global Fund. I have authored over 200 scientific publications and three books. Follow me on Twitter (@bruce_y_lee) but don’t ask me if I know martial arts.

Source: Kaiser CEO Bernard Tyson Dies Unexpectedly, Here Is His Impact

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The Kaiser Permanente model is all about integration and partnerships, and how everything comes together for patients, said Kaiser Permanente CEO Bernard Tyson. Tyson thus has to balance his time with both internal and external constituents, which is a non-trivial task for an organization of Kaiser Permanent’s size. “The outside influences so much of what happens on the inside, that I have to spend a lot of my time with customers, the government and other key parties.” In his visit to Systems Leadership on April 25, 2019, Tyson spoke with Lecturer Robert Siegel on the challenges of running an $80B per year company in a complex world while still focusing on the goal of keeping patients healthy.
Read more on Medium: https://stanford.io/2XZKhTZ

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Next Billion-Dollar Startups: Truepill’s Dose Of Digital Disruption To The $400 Billion Pharmacy Industry

I was barely getting any sleep,” Umar Afridi, cofounder and CEO of Truepill, says of the tech-enabled pharmacy company’s early days. From 9 a.m. to 4:30 p.m. each day, he worked at Truepill’s distribution center in Hayward, California. Then he drove to his job as a pharmacy manager at a 24-hour CVS in East San Jose. On the side, he studied for a dozen state pharmacy exams so that Truepill, which at the time had no other pharmacists on staff, could legally ship to those states. “It was a pretty crazy first year,” he says with characteristic understatement.

That craziness has paid off for Afridi, 37, and his cofounder, Sid Viswanathan, 35, who hope to upend the staid, heavily regulated pharmacy business with technology. Truepill, which is based in San Mateo, California, shipped its first prescriptions in 2016. Last year its revenue reached $48 million, helped by the fast growth of direct-to-consumer customers like Nurx, which sells birth control, and Hims, which focuses on remedies for hair loss, erectile dysfunction and acne. This year Truepill could double its revenue to $100 million, as it expands its customer base beyond direct-to-consumer medications to prescriptions that treat more serious illnesses.

Those revenue numbers gained Truepill a spot on Forbes’ Next Billion-Dollar Startups list this year, despite its having raised just $13 million in venture funding led by Initialized Capital at a valuation of $80 million in its last round. That valuation makes Truepill an outlier on the list, as does the fact that Afridi and Viswanathan own the majority of the business and plan to continue to do so after raising the next round of capital, expected before the year’s end.

Afridi and Viswanathan—and their investors—are betting that Truepill will see a big payoff as consumers move away from in-person doctor visits and to a new model of telemedicine. “This is the building block of digital health and the future of healthcare,” says Initialized managing partner Garry Tan.

Pharmacy is a roughly $400 billion business in the United States, yet only recently have entrepreneurs begun tackling the market. In 2013, two young founders launched PillPack, a retail pharmacy startup that was acquired by Amazon last year for around $750 million. Other newcomers followed, including New York City’s Capsule, which grabbed $270 million in funding to do same-day prescription delivery refilled via text.

Truepill’s difference: Its business-to-business model makes it a behind-the-scenes player, invisible to retail customers, who will never have reason to know its name. That’s by design, and it allows Truepill to sign agreements with drugmakers and pharmacy benefit managers, those industry intermediaries that sit between insurers and drugmakers, without directly competing with them. “We’re not a traditional mail-order pharmacy,” Afridi says. “We’re way more than that.”

Afridi was born in Salt Lake City and grew up in Manchester, England, where his mother’s family was from. He studied pharmacy at the University of Manchester and worked as a relief pharmacist, filling in for those who went on vacation, in England. After passing the tests to practice in the United States, he took a job at Fred Meyer near Seattle. Unlike the typical pharmacist, Afridi always had an entrepreneurial side gig. During college, he imported performance cars, like the Mazda RX-7 and the Mitsubishi Evo 5, from Japan and sold them at a profit.

                              

While working as a pharmacist, he taught himself computer programming and began playing around with the idea of an on-demand pharmacy. His goal: to ease customers’ frustrations with waiting in line to pick up medications and to cut back the phone calls and faxes required for pharmacists to do their job. “I’ve always had a passion for technology, and every time I see a problem, I think, ‘How can technology fix this?’” he says.

Viswanathan, an Indian immigrant, had worked at Johnson & Johnson, then cofounded CardMunch, a business-card scanning app. In 2011, LinkedIn bought the startup for a reported $3 million. Viswanathan stayed at the larger company after the deal, and when LinkedIn went public the stock he owned made him wealthy for the first time. “It was fairly life-changing coming from no money to having some,” he recalls. After nearly four years at LinkedIn, he was ready to leave and work on another startup. “My only criterion was what do I want to spend the next 10 years of my life on,” he says.

While he was pondering what to do next, he stumbled upon Afridi’s profile on LinkedIn—where Afridi had changed his header to “startup founder, pharmacist”—and messaged him cold to talk about healthcare. Soon the two were meeting regularly and brainstorming ideas for a business to start together.

By then, other startup pharmacies, like PillPack, were making inroads with retail customers. Rather than compete in what had become a crowded space vying for retail customers, Afridi and Viswanathan figured they could operate in the background, using technology to build an extremely efficient pharmacy distribution center. “Truepill is what you get when you put together a pharmacist and a software engineer,” Viswanathan says.

“This is the building block of digital health and the future of healthcare,” says Initialized Capital’s Garry Tan.

Their idea coincided with the rise of new direct-to-consumer health brands that needed a distributor that could follow all the pharmacy regulations. To consumers, these Instagrammable health products don’t look like drugs, and often their subscription boxes contain a mix of both prescription and over-the-counter products. But if there’s even one vial of prescription pills going out in the mail, the startup sending it needs a pharmacy to fulfill the order. In talking with Nurx, Viswanathan says, “we came to find out they were literally picking up the phone to mom-and-pop pharmacies in different states.” They gained a customer by offering a better way.

In 2017, Andrew Dudum cofounded Hims, the fast-growing direct-to-consumer therapeutics startup for men, and he, too, signed up with Truepill. “We knew from the beginning we were going to grow very fast,” Dudum says. “We expected 30 to 50 orders per day, and that was the scale we communicated to Umar and Sid that we needed to be prepared for. In the first week, we were getting 500 orders per day.” Today, Hims, which is valued at $1.1 billion, does thousands of orders per day and is one of Truepill’s largest customers. “They figured out a way to scale with us,” Dudum says.

At Truepill’s Hayward distribution center, all orders come in electronically. When Hims sends a prescription for finasteride, the male hair-loss treatment, for example, it goes through electronic vetting and then a robotic machine pulls the 1-milligram tablets from custom-made 1,000-count bottles into a small pill vial that gets labeled with Hims branding. That automation allows Truepill to work more efficiently than a traditional retail pharmacy. So, too, does its focus on a small number of medications: Ten medications, including finasteride and the erectile-dysfunction drug sildenafil, represent 80% of its volume. Its scale in those allows Truepill to turn over its inventory every few days and gives it the power to negotiate prices with drug manufacturers and pharmacy benefit managers on those products.

“Truepill is what you get when you put together a pharmacist and a software engineer,” says cofounder Sid Viswanathan.

For Afridi and Viswanathan, direct-to-consumer medications are just the beginning. They are starting to sign agreements with drugmakers and pharmacy benefit managers, though they won’t name those larger partners yet. This shift comes none too soon, as Hims has announced that it would open its own pharmacy in Ohio to shift a portion of its distribution in-house—a move that Viswanathan says will begin to impact Truepill in 2021. “Hims is a large part of the business in quantity, but not in revenue,” he says, noting that medications reimbursed by insurance are higher cost than lifestyle meds that consumers pay for out of pocket. Truepill currently has two distribution centers and is adding another five.

Afridi and Viswanathan’s next step: building a nationwide network of doctors in every state that will enable their pharmacy startup to play a bigger role in the shift to telemedicine. Those doctors will allow it to work directly with makers of specialty medications, say, so that they can distribute their medications to consumers more easily. Over time, Truepill figures its orders could rise from 5,000 to 10,000 per day to 100,000.

“Lifestyle and ED [erectile dysfunction] medications have allowed us to build the infrastructure to all these other areas,” Afridi says. “There is a lot of innovation that needs to happen in the space.”

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I’m a senior editor at Forbes, where I cover manufacturing, industrial innovation and consumer products. I previously spent two years on the Forbes’ Entrepreneurs team. It’s my second stint here: I learned the ropes of business journalism under Forbes legendary editor Jim Michaels in the 1990s. Before rejoining, I was a senior writer or staff writer at BusinessWeek, Money and the New York Daily News. My work has also appeared in Barron’s, Inc., the New York Times and numerous other publications. I’m based in New York, but my family is from Pittsburgh—and I love stories that get me out into the industrial heartland. Ping me with ideas, or follow me on Twitter @amyfeldman.

Source: Next Billion-Dollar Startups: Truepill’s Dose Of Digital Disruption To The $400 Billion Pharmacy Industry

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Hi, I’m Garry Tan, venture capitalist and cofounder at Initialized Capital. We were earliest investors in billion dollar startups like Coinbase and Instacart, and we’re spending time with some of our best founders to learn the secrets of their success and see the future they’re building. Today I sat down with Sid Viswanathan, cofounder of Truepill, an API for all needs for telemedicine. Telemedicine has the potential to bring down costs and make high quality care more accessible for every person on the planet. We’re headed to Hayward, California, their west coast HQ and fulfillment center out of which they provide pharmacy services for dozens of telemedicine startups and practices large and small, shipping to all 50 states. Come learn about how as a founder, you need to choose a problem space that you could want to work on for 10 years or more. Please like this video and subscribe to my channel if you want to see more videos like this with top founders. Find Sid on Twitter at https://twitter.com/sidviswanathan Find Garry on Twitter at https://twitter.com/garrytan Learn more about Truepill at https://truepill.com Learn more about the companies we fund, and how we work with them at https://initialized.com

How This Founder Learned to Trust Her Gut and Grow Her $3 Million Probiotics Company

When it comes to business, Harris would rather listen to her own instincts than to advice from well-meaning MBAs: “If they knew exactly how to do it, they’d be doing it,” she says. “We’re learning as we go, and trusting our gut has been the best lesson so far.” Here, Harris holds a symbiotic culture of bacteria and yeast–scoby for short–which ferments kombucha.
Amy Lombard

After Ashley Harris and her family began experimenting with probiotics at a doctor’s recommendation, they saw digestive issues clear up, eczema disappear, and moods improve. She wanted to help other families overcome similar ailments, so in 2015 she founded LoveBug Probiotics, a New York City-based supplements business that grew its revenue 2,621 percent in three years, and landed deals with major retailers like Target and CVS. Despite having limited business experience, here’s how she pulled from her previous career as a 19th-century European paintings​ specialist at Sotheby’s to get LoveBug started. –As told to Anna Meyer

We launched selling our products on Amazon and on our website. But those early days were tough. The space is competitive, and my startup didn’t have the kind of budget for marketing that other probiotic companies have.

With my art background, I focused on creating bold-colored packaging and tongue-in-cheek branding messages like “Feel good from the inside out” and “Yeast is a beast.” It helped us stand out among competitors that had very clinical marketing and branding. Our approach resonated with customers, and incoming positive Amazon reviews helped more and more eyes land on our page. By the end of that first year, my startup took in around $115,000 in revenue.

Amy Lombard

In 2016, my instincts and art background served me again: I traveled to Anaheim, California to an industry trade show, Natural Products Expo West, to create an over-the-top display booth with Ikea furniture and bookcases that I put together on the spot. Throwing a corporate banner over a folding table wasn’t going to cut it. Compared to the bland, run-of-the-mill corporate booths around us, we stood out and buyers from national retailers all came looking, and after hearing my story, became interested in doing business.

Fast forward three years, and by the end of 2018, I grew the brand 2,621 percent, landed deals with national retailers like Target and CVS, put product through the doors of more than 10,000 retail locations, and brought in over $3.1 million in revenue in 2018.

Courtesy Company

As a first time founder with a background in art and literature, a lot of well-meaning people with MBAs told me how I should run my business. I felt pressured to listen to them, but I learned to trust my own instincts. If they knew exactly how to do it, they’d be doing it. My team and I are learning as we go, and trusting our gut has been the best lesson so far.

In addition to growing my business, I like to experiment with fermenting probiotic-rich foods in my own kitchen. From wild yeast in a homemade bread starter that produces an insanely satisfying sourdough bread, to lacto-fermented pickled vegetables that add the needed balance to a dish, or to the yeast and grape fermentation that makes a varietal of wines–fermenting has been a joy to experiment with.

Fermentation requires balancing acidity, temperature, and time, and I’ve grown to view my business the same way. It’s not just about how fast you can scale, it’s about putting the right things in and letting it grow.

 

By: Anna Meyer

 

Source: How This Founder Learned to Trust Her Gut and Grow Her $3 Million Probiotics Company

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After the review, check out our list of the 10 Probiotic Supplements! http://www.probioticsguide.com Want to know what I think of this probiotic? This is an in depth review of Lovebug Probiotics. See what real experts and actual users have to say about this probiotic supplement! People are always asking me which probiotic is best. In this review I’ll go over everything you need to know about this one. Here’s a breakdown of what I’ll cover: First, I’ll give you my overall rating of the product based on how it compares to all the other probiotics I’ve tried. You don’t want to miss this part! Then, I’ll tell you how easy or difficult it is to use. This includes the size of the pills, the taste and what form they come in. There are so many options nowadays, so I break it down for you. Next, I talk about the ingredients and strain profile. There are many strains out there and they all target different things. At the end of my Lovebug Probiotics review I’ll go over any side effects I got while using the probiotic. These include both positive and negative things I experienced. To sum it up, if you want to learn all about this probiotic, I’d recommend checking out the full video. Here’s our list of the 10 best probiotics! http://www.probioticsguide.com/best-p…

 

Health Testing Startup UBiome Files For Chapter 7 With Plans To Shut Down

In October 2018, microbiome testing startup uBiome was riding pretty high. Less than a month before, the company had announced a shift to more therapeutic products, raised $83 million in a venture capital round, and added a former Novartis CEO to its board.

Fast forward a year later: the company’s cofounders have resigned, it faces law enforcement scrutiny over its billing practices, it’s currently in bankruptcy proceedings, and it filed a motion Tuesday to move from Chapter 11 to Chapter 7 bankruptcy, which would mean liquidating its assets and shutting down.

A lot can happen in 12 months.

The San Francisco-based company was founded in 2012, and its first product was an at-home kit where people could provide fecal samples and send them in for genomics testing. The company then purported to provide a report about its customer’s microbiome—the bacteria present in the intestines that can have a big impact on people’s health.

Today In: Innovation

The company then began offering a test for irritable bowel syndrome and a test for vaginal health. These tests required a doctor’s order. The company’s practices involving doctors who ordered those tests are reportedly under scrutiny by law enforcement, and its Chapter 11 bankruptcy filing included notes about millions of dollars owed to insurance companies as refunds. In July, the company’s cofounders and co-CEOs, Jessica Richman and Zac Apte, resigned from the company.

During the company’s Chapter 11 filing, the company had indicated that it would be looking into a sale. However, according to the motion it filed in court today, the company wasn’t able to secure lending that would enable it to continue operations. As a consequence, it has requested the court allow it to cease operations and liquidate its assets in order to pay off its creditors.

The bankruptcy court still needs to approve the motion. If it is accepted and the company moves to Chapter 7, the liquidation of uBiome’s assets will happen under the supervision of a court-appointed trustee.

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Source: Health Testing Startup UBiome Files For Chapter 7 With Plans To Shut Down

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Jessica Richman, Co-founder and CEO of uBiome and Kimmy Scotti, Partner at 8VC, discuss making the move from academia to startup world, applying data to health problems and what’s going on in health tech. — In 2017, Slush brought together 20,000 attendees, including 2,600 startups, 1,600 investors and 600 journalists from over 130 countries. The cold and dark Helsinki welcomed these tech-heads to a week long celebration, including Slush Music, new Slush Y verticals, and hundreds of side-events and activities around the city. Slush 2018 takes place on 4.–5.12.2018 Slush 2017 in pictures: https://www.flickr.com/photos/slushme… Website: http://www.slush.org Facebook: http://www.facebook.com/slushHQ Twitter: http://www.twitter.com/slushHQ Instagram: http://instagram.com/SlushHQ Linkedin: http://www.linkedin.com/company/slush Slush Music: http://music.slush.org Slush Tokyo: http://tokyo.slush.org Slush Shanghai: http://shanghai.slush.org Slush Singapore: http://singapore.slush.org Intro videos by: VAU (http://vau.company) VELI.fx / Veli Creative (http://velicreative.fi) Slush is a non-profit event organized by a community of entrepreneurs, investors, students and festival organizers. Slush has grown from a 300-person event to become the leading event of its kind in the world. The philosophy behind it has remained the same: to help the next generation of great, world-conquering companies forward.

How to Create a Winning Startup Culture

Some time back, in my infographic on 51 Business Mistakes that most Entrepreneurs Make, I had outlined that one of the biggest mistakes is that you do not give any thought as to what you consider would be a great startup culture. And, without good policies or HR to keep things in check, the startup begins to develop a toxic business culture.

You will find this problem in businesses in Japan a lot. The Japanese culture is that people should work harder and if any employee goes home early, or finishes his work faster than the other, they usually get snitched on to their bosses by their co-workers. Since, you are growing a startup, you may want to avoid all these hullabaloo as time is limited and money is precious. Your workforce is your primary foundation and you want to build it strong as everything else you do is going to be supported by your employees.

Therefore, here is what you do to streamline the company’s functions and develop a strong and great company culture:

Step #1. What are the values that you hold dear and want to be reflected by your startup?

Yeah, you are the boss, you are the man of the show. Since you run the startup, you need it to reflect the type of entrepreneur you are and the entrepreneurial qualities you have as best as possible. That way, you can run it better!

So, ask yourself, what quality do you want for your startup to be its brand identity? It can be anything. For example – if you think hustle is the best quality of a startup (although, I disagree), it can be – “being the hardest worker in the room”, or if you want your employees to have a quality personal life, it can be something else.

Now, when you have landed on some values which you hold dear, make sure everybody in your business knows it – the employees, your partners, the directors and even the janitors!

Step #2. Make Sure Employees (Both Present and Future) Reflect those Ideals

If all you look at when hiring employees is whether they have the requisite skills or not, then you could be doing a grave mistake. Studies have proven that employees who are not a cultural fit with your business shall not work their best.

Heck, they can even become toxic in nature and do more harm to your company culture than good. Suppose you have an open-door policy wherein any employee can talk to you directly; however a mid-level executive doesn’t want that and shouts at and harasses his juniors for going to you without passing through him first – what do you think is going to happen?

Your startup culture will be in-operational for just one worker and can hinder performance among all your employees. That’s why mistake #1 in my post on business mistakes showed that you need a good HR even if your business is new. An HR has relevant skills and expertise in hiring the best workers so that can be a breather for you and help your business focus on, where it is truly necessary.

Step #3. Make Sure Everyone’s Voice is Heard

In order to truly know whether every employee is resonating according to your business ideals, you have to make sure that the voice of employees at even the lowest level is heard. That way, you can be sure the startup culture has truly sunk in.

In order to create a culture that actually motivates the employees, you also have to make sure that they understand that their voice matters and that if they have any grievances to tell or advices to offer, it has a good chance to be acted upon.

Also, this step that is to make everybody’s voice heard should not be made only in a vertical direction that is only from down to the top; rather it should be made laterally. Colleagues should know what their teammates think and feel.

That way, it can promote good communication and the workplace is going to remain energized. You need to also support lateral feedback even if means you have to go above and out of what you should be doing.

Step #4. Give Feedback

Now, the above step will be quite redundant without this process in place. Your employees will stop saying what they feel if they believe that what they say will not be acted upon. Therefore, you have to be proactive in giving feedback to employees. Show them that their work counts and learn to motivate them. Hold interactive sessions, talk one-on-one with employees who have addressed their grievances to you and also share your thoughts on any input they have given.

That way, you actually know whether your company culture is striving or whether the employees have just put up a facade to please you. Now, an even more important point – there will always be some employees who go against the company culture or even rebel against them.

There are three ways to handle them which you must note and be careful of:

  1. Firstly, by providing gentle feedback about how you want things to be and remain in your business. This works against employees who unknowingly have strayed from the path and need just a gentle pat to return back on track. For example, if you have a company  culture on wearing formal attire and being extremely disciplined but you see a guy who is trying to break free, because he feels the clothes are very restrictive, you can guide him to a middle path.
  2. Secondly, by actively supporting him in his endeavour. You know, some people are really creative and can’t be bounded. While, it can do a lot of damage to your company culture, if you feel that the guy has got a lot to offer, you can let him be a wild horse. This usually applies to some very creative overachievers. These guys are usually rebels and if they don’t actually harm the way other employees do their work, it is best to keep them and encourage their habits! Seems rather odd, right!?
  3. Lastly, by firing him. Some people just poison the company culture. Toxic employees who are constantly fighting their peers or are late in finishing their work almost always need to be eradicated or else you risk the chance of demotivating your other employees.

While, it looks rather simple, it is the simple things that have the most effectiveness. Executing these principles at your startup can be the separating factor from just a startup and a startup with a workforce who are optimized to win!

By:

Source: How to Create a Winning Startup Culture

 

Babylon Health Gets $2 Billion Valuation With New Funding That Will Help It Expand In U.S.

Babylon Health, a U.K.-based startup whose fast growth has been shadowed by concerns about the efficacy of its telemedicine apps, has raised $550 million in Series C funding, elevating the company to unicorn status. Saudi Arabia’s Public Investment Fund (PIF), which invest on behalf of the Saudi Arabian government, led the round that valued the company at $2 billion with a total of $635 million raised.

The new capital will enable the company to expand into more markets including the U.S. and Asia, Babylon said, and it will also bolster its artificial intelligence capabilities on the platform, which serves 4.3 million users worldwide. An unnamed U.S health insurer and a fund of global reinsurer Munich Re also invested. Vostok New Ventures, which already holds a 10% stake in Babylon, previously said it would participate in the new round, as did Sweden’s Kinnevik.

With an aim of cutting healthcare costs and broadening access, Babylon secured deals with Britain’s National Health Service with its apps to replace local doctor visits with video consultations and a chatbot that doled out advice on whether to see a doctor. It released a new artificially intelligent chatbot that promised to give diagnostic advice on common ailments, without human interaction. Its progress, however, was stuttered by doubts about the services’ abilities. Interviews with current and former Babylon staff and outside doctors revealed broad concerns that the company has rushed to deploy software that had not been carefully vetted, then exaggerated its effectiveness, Forbes revealed in December. The company disputed those claims, saying its software goes through many clinical tests.  The company also came under fire for failure to follow up with patients receiving mental health treatment. At the time, Babylon blamed problems with the NHS referral system.

Any blunders don’t seem to have slowed the company’s momentum.

Led by CEO and Founder Ali Parsa, an Iranian-born former banker, Babylon has also secured contracts with Prudential and Samsung. It says it now delivers 4,000 clinical consultation a day, and one patient interaction every 10 seconds.

“We have a long way to go and a lot still to deliver,” Parsa said in a statement. “While the burden of healthcare is global, the solutions have to be localized to meet the specific needs and culture of each country.”

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I serve as assistant editor for Forbes Innovation, covering cybersecurity and venture capital. I have covered politics at POLITICO, entertainment for Time Out New York, but my most fascinating beat has been covering the intersection of technology, finance, and entrepreneurship. I’m also an alumna of CUNY Graduate School of Journalism, and the University of Washington. Email tips to mmelton@forbes.com

Source: Babylon Health Gets $2 Billion Valuation With New Funding That Will Help It Expand In U.S.

Groupon Made Eric Lefkofsky A Billionaire—His Cancer-Fighting Startup Is Worth Far More

Eric Lefkofsky hasn’t taken a science class since college. But as he meanders through the Chicago lab of Tempus, his medical startup, he presents an air of expertise. “One thing you can see right off the bat is the purple staining of this cell,” he says, pointing to the pathology slide of a patient with breast cancer. He walks past vials of lysis buffer and a $1 million genomic sequencer. “Tempus is attempting to bring the power of artificial intelligence to healthcare,” he says. “The first step in all that is data.”

Assembling data was the first step in Lefkofsky’s other ventures. The 49-year-old has launched five companies worth at least $250 million apiece, each promising to transform an industry by using big data. His best-known venture is Groupon; despite the deals site’s disappointing share price, Lefkofsky is worth an estimated $2.7 billion.

Tempus is predicated on the theory that information, lots of it, will enable doctors to personalize cancer treatments and make them more effective. A doctor treating a patient with lung cancer might send a tumor sample to Tempus for genomic sequencing. Tempus identifies a mutation in the gene for epidermal growth factor receptor, which causes cells to grow and divide too much. With that, the doctor prescribes a targeted therapy that can have better results than chemotherapy.

So far the 700-employee company has raised $520 million (Lefkofsky put in $100 million). The lavish $3.1 billion valuation suggests investors expect his approach to make a big score, starting with cancer, then against chronic conditions like depression and diabetes. But precision medicine is a nascent field. Tempus, on its own or with a research partner, has published fewer than 20 peer-reviewed manuscripts since its founding four years ago. A competitor, sequencing firm Foundation Medicine, has published over 400 in 9 years.

While the cost of sequencing has dropped, it still runs $1,000 to $5,000 per analysis, and Tempus loses money doing it. Tempus also licenses its library of anonymized data to drug companies, insurers and researchers. Lefkofsky won’t reveal revenues, but says it gets seven-figure fees from seven of the ten largest cancer drug companies.

Lefkofsky got the entrepreneurial bug at the University of Michigan, where he studied history and made money selling carpets. In 2001, he cofounded InnerWorkings (marketing), then Echo Global Logistics (transportation) and Mediaocean (advertising software). One of Lefkofsky’s hires, Andrew Mason, pitched an idea for a business focused on “collective action.” Lefkofsky invested $1 million in what became Groupon. A year after its 2008 founding, it booked $14.5 million in revenue; in 2011, it generated $1.6 billion.

“It certainly feels like my entire career has led to this point,” Lefkofsky says. “I hope this will be my legacy project.”

Lefkofsky spent a few years dabbling on other projects, including Uptake (predictive analytics for heavy industry). “I always knew back then, [with] those businesses, that I would be in and out,” he says.

In 2014, Lefkofsky’s wife, Liz, was diagnosed with breast cancer. “I was just perplexed at how little data had permeated her care,” he says. That experience ultimately launched Tempus. (Liz has “been taking it one day at a time,” Lefkofsky says.)

Yet again, Lefkofsky needed data. But some researchers were initially hesitant to share. “They wanted us to basically send all our samples there for all our patients” in the future, says John McPherson, deputy director of the UC Davis Comprehensive Cancer Center. “But we took a more cautious approach.” They ran a head-to-head comparison involving gastrointestinal cancer between Tempus and Foundation Medicine; Tempus fared well.

                       

In 2017 Tempus reached a licensing agreement with the American Society of Clinical Oncology to extract and organize data from 1 million patient records. Today the company says it already works with 30% of U.S. oncologists; many send patient records and biopsies to Tempus for analysis. Tempus hopes to sequence 120,000 genomic samples for doctors this year.

Even with that data, Tempus faces stiff competition. Last year Swiss drug giant Roche spent $4.3 billion acquiring Foundation Medicine and big data firm Flatiron Health. Another startup, Concerto HealthAI, backed by billionaire Romesh Wadhwani, has access to many of the same records as Tempus.

                           

Doctors at UC Davis, McPherson says, have only sent about 100 samples to Tempus, considerably fewer than they’ve sent to Foundation. “I think they were a little baffled by the amount of data that came back [from Tempus],” McPherson says. Clinicians “tend to take the easier route just to save time. But there are several clinicians that are now working fairly closely on the research side with them.”

Lefkofsky remains supremely optimistic. “It certainly feels like my entire career has led to this point,” he says. “I hope this will be my legacy project.”

I’ve been a reporter at Forbes since 2016. Before that, I spent a year on the road—driving for Uber in Cleveland, volcano climbing in Guatemala, cattle farming in Urugua…

Staff writer at Forbes. Email me at mtindera@forbes.com and follow me on twitter @mtindera07.

Source: Groupon Made Eric Lefkofsky A Billionaire—His Cancer-Fighting Startup Is Worth Far More

The Most Sustainable Companies In 2019

As political and business leaders gather for the World Economic Forum in Davos, Switzerland, this week, a roster of the most sustainable companies is also enjoying a moment in the spotlight. The list, the Global 100, ranks large corporations across the globe on their performance reducing carbon and waste, their gender diversity among leadership, revenues derived from clean products, and overall sustainability. In its 15th year, the ranking is compiled by a Canada-based sustainability-focused financial information company and magazine, Corporate Knights, beginning with a list of about 7,500 companies, all of which generate more than $1 billion in annual revenue………..

Source: The Most Sustainable Companies In 2019

Brex Has Amassed A Valuation Of $1.1 Billion In Under Two Years – Donna Fuscaldo

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Brex, the provider of a credit card for startups, has raised $125 million in venture funding, propelling the company into unicorn status with a $1.1 billion valuation. Earlier Friday the San Francisco-based startup announced it closed a $125 million Series C round of funding with Greenoaks Capital and DST Global leading the investment round. This comes on the heels of $50 million raised in June. Since changing course a little more than a year-and-a-half ago, Brex has been able to amass a valuation of more than $1 billion…….

Read more: https://www.forbes.com/sites/donnafuscaldo/2018/10/05/brex-has-amassed-a-valuation-of-1-1-billion-in-under-two-years/#47f0025b65a1

 

 

 

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