Mar
31

391st 1Mby1M Entrepreneurship Podcast With Ben Mathias, Vertex Ventures - Sramana Mitra

Ben Mathias, Managing Partner at Vertex Ventures, India, discusses the trends and dynamics of the Indian startup eco-system, including exits. India needs exits at this point, even if they’re...

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Original author: Sramana Mitra

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Mar
31

Bootstrapping Decisively to $5M+ in Revenue: Mack Sundaram, CEO of RainMakerForce (Part 6) - Sramana Mitra

Sramana Mitra: How did you get this off the ground? Mack Sundaram: Being in a sales role, I had the privilege of having worked with companies. I personally have to find ways to solve this problem of...

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Original author: Sramana Mitra

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Mar
30

UberRUSH is shutting down

Uber is closing the doors on its on-demand package delivery service for merchants, RUSH, in New York City, San Francisco and Chicago, TechCrunch has learned. In an email to users, Uber said it plans to close RUSH operations June 30, 2018.

“At Uber, we believe in making big bold bets, and while ending UberRUSH comes with some sadness, we will continue our mission of building reliable technology that serves people and cities all over the world,” Uber’s NYC RUSH team wrote to customers.

Uber has since confirmed the wind-down.

“We’re winding down UberRUSH deliveries and ending services by the end of June,” an Uber spokesperson told TechCrunch. “We’re thankful for our partners and hope the next three months will allow them to make arrangements for their delivery needs. We’re already applying a lot of the lessons we learned together to our UberEats food delivery business in over 200 global markets across more than 100,000 restaurants.”

With UberRUSH, which I forgot still existed, people can request deliveries for items no more than 30 pounds in size, except animals, alcohol, illegal items, stolen goods and dangerous items like guns and explosives. Last April, Uber stopped providing courier services to restaurants, encouraging them to instead use UberEATS, the company’s food delivery service. The shutdown of UberRUSH comes shortly after Shyp, an on-demand shipping company, announced its last day of operations.

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Mar
25

These 3 simple things will reveal if a Rolex is real or fake, according to a watch expert

A company called Clipisode is today launching a new service that’s essentially a “talk show in a box,” as founder Brian Alvey describes it. Similar to how Anchor now allows anyone to build a professional podcast using simple mobile and web tools, Clipisode does this for video content. With Clipisode, you can record a video that can be shared across any platform – social media, the web, text messages – and collect video responses that can then be integrated into the “show” and overlaid with professional graphics.

The video responses feature is something more akin to a video voicemail-based call-in feature.

Here’s how it works. The content creator will first use Clipisode to record their video, and receive the link to share the video across social media, the web, or privately through email, text messaging, etc. When the viewer or guest clicks the link, they can respond to the question the show’s “host” posed.

For example, a reporter could ask for viewers’ thoughts on an issue or a creator could ask their fans what they want to see next.

How the video creator wants to use this functionality is really up to them, and specific to the type of video show they’re making.

To give you an idea, during a pre-launch period, the app has been tested by AXS TV to promote their upcoming Top Ten Revealed series by asking music industry experts “Who Is Your All-time Favorite Guitarist?

BBC Scotland asked their Twitter followers who they want to see hired as the new manager for the Scotland national football team.

Who do you want as the next Scotland manager?

We asked and you told us.

Watch here

Watch my #Clipisode: "Sportscene Extra – Scotland Manager"
https://t.co/E28dfSrlIi

— Jonathan Sutherland (@BBCjsutherland) February 8, 2018

A full-time Twitch gamer, Chris Melberger asked his subscribers what device they watch Twitch on.

The content creator can then receive all the video responses to these questions privately, choose which ones they want to include in their finished show, and drag those responses into the order they want. The creator can respond back to the clips, too, or just add another clip at the end of their video. Uploading pre-recorded clips from services like Dropbox or even your phone is supported as well.

Our Top Ten Revealed experts @josemangin @EddieTrunk @KevinBlatt @lyndseyparker @PeteGiovine made a Webisode highlighting their favorite guitarists to get you excited for the show!

Set your DVR for the premiere SUNDAY –> https://t.co/G9JlpvAoAA pic.twitter.com/Izqc1wu3Zv

— AXS TV (@AXSTV) February 10, 2018

Plus, content creators can use Clipisode to overlay professional-looking animations and graphics on top of the final video with the responses and replies. This makes it seem more like something made with help from a video editing team, not an app on your phone.

Because Clipisode invitations are web links, they don’t require the recipients to download an app.

“[People] don’t want to download an app for a one-time video reply,” explains Alvey. “But with this, people can reply.” And, he adds, what makes Clipisode interesting from a technical perspective, is that the web links users click to reply can work in any app in a way that feels seamless to the end user.

“That’s our biggest trick – making this work in other people’s apps, so there’s no new social network to join and nothing to download,” he says.

The app is free currently, but the plan is to generate revenue by later selling subscription access to the authoring suite where users can create the animated overlays and branding components that give the video the professional look-and-feel.

In an online CMS, creators can author, test and deploy animated themes that run on top of their videos.

The final video product can be shared back to social media, or downloaded as a video file to be published on video-sharing sites, social media, or as a video podcast.

Clipisode has been in development for some time, Alvey says. The company originally raised less than a million from investors including Mike Jones and Mark Cuban for a different product the founder describes as a Patreon competitor, before pivoting to Clipisode. Investors funded the new product with less than half a million.

The app itself took a couple of years to complete, something that Alvey says has to do with the animation studio it includes and the small team. (It’s just him and technical co-founder Max Schmeling.)

Clipisode is a free download on iOS and Android.

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Mar
30

Veriff wants to make it simple to present identification online

Whenever you are doing something online that requires you to present an official ID like a passport or driver’s license to complete the transaction, it presents risk to both parties. Consumers want to know they are secure and brands want to know the person is using valid credentials. That’s where Veriff comes in.

Kaarel Kotkas, CEO and founder of the company, says the goal is to be “the Stripe of identity .” What he means is he wants to provide developers with the ability to embed identity verification into any application or website, as easily as you can use Stripe to add payments.

The company, which was originally launched in Estonia in 2015, is a recent graduate of the Y Combinator winter class. When you undertake any activity on the web or a mobile app that requires a valid ID, if Veriff is running under the hood, you can submit an ID such as a driver’s license. It uses a secret sauce to determine that the ID being presented is an officially issued one and that it belongs to the person in question.

When you consider that there were over 15 million identity thefts in the US in 2016 alone, you know it’s not a simple matter to identify a forgery. Fake IDs can be quite good and it’s often difficult to identify fraudulent ones with the naked eye.

It’s hard to tell the difference between the real and fake IDs in this shot. Photo: Veriff

If you want to open a bank account online for instance, you have to provide proof of identity for the bank. With Veriff, you take a picture of yourself, then submit a picture of your official ID and Veriff analyzes it to make sure it’s valid.

The idea is to make the ID process easy and quick for the consumer, while providing an accurate way for the brand to check IDs online. Consumers also benefit because someone can’t use their identity online to get credit or other services.

If there is an issue with the ID, the person can be directed to a human for a video chat where they can discuss it if need be.

The company currently has 20 customers and is on track to do $100,000 in revenue this month, according to data they provided at their Y Combinator Demo Day presentation. They plan to make money by charging $1 per verification.

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Mar
25

Badoo's wealthy founder Andrey Andreev explained the ways he takes his obsession with food to the next level

ClearVoice recently launched a new feature to give freelancers a better way to show off their work and get new jobs.

CV Portfolios offer an easier alternative to personal websites that are often sparsely populated, out-of-date or otherwise neglected.

Thanks a technology that the company is calling VoiceGraph, writers no longer have to keep the pages updated themselves. Instead, co-founder and CEO Joe Griffin said VoiceGraph indexes stories from the top publishers online (about 250,000 currently) and matches them to their authors. It also aggregates metrics around social sharing and connecting to the authors’ own social media accounts.

“At the end of the day, what we want to do here is give freelancers very robust tools that make it as simple as possible to address one of the biggest hurdles freelancers were having: creating a portfolio and maintaining it,” Griffin said.

So for example, you can visit my CV Portfolio to see many of my latest TechCrunch articles. Granted, that’s not that so exciting, since you can do the same thing on my TechCrunch author page, but this could be pretty useful if I was a freelancer with a variety of publishers, or if I wanted to highlight articles I wrote for past employers.

There were around 400,000 automatically generated CV Portfolios at launch. Authors can claim their profiles, then edit them by creating new sections, moving articles around, deleting work that they’re not proud of, adding links or uploading files. And again, it’s a lot easier because they’re starting with a portfolio that’s already populated and automatically updated with new stories.

(And yes, if you’re a freelancer with an automatically generated portfolio that you don’t want on ClearVoice, Griffin said you can just delete it.)

The product is free. Sure, you can can use your CV Portfolio to promote yourself on ClearVoice’s talent marketplace, where freelancers get hired by companies to help with content marketing. But Griffin said he’s perfectly fine if people just want to create CV Portfolios and don’t participate in the market at all.

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Mar
30

1Mby1M Virtual Accelerator Investor Forum: With Nitin Pachisia of Unshackled Ventures (Part 4) - Sramana Mitra

Sramana Mitra: If you have to make 500 micro-VC funds productive, there needs to be some of these segmentation and clear definition. Otherwise, nobody will find anybody. It’s going to be constantly...

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Original author: Sramana Mitra

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Mar
23

How Raya’s $8/month dating app turned exclusivity into trust

My dad, brother, and I are now doing a monthly book club together. One of us chooses a book, we all read it, and then we do an hour-long video conference and talk about it. We’ve done this for about six months now and it’s wonderful.

A few months ago Daniel chose Waking Up White, and Finding Myself in the Story of Race by Debby Irving. It was a powerful book that started off strong.

“I can think of no bigger misstep in American history than the invention and perpetuation of the idea of white superiority. It allows white children to believe they are exceptional and entitled while allowing children of color to believe they are inferior and less deserving. Neither is true; both distort and stunt development. Racism crushes spirits, incites divisiveness, and justifies the estrangement of entire groups of individuals who, like all humans, come into the world full of goodness, with a desire to connect, and with boundless capacity to learn and grow. Unless adults understand racism, they will, as I did, unknowingly teach it to their children.

No one alive today created this mess, but everyone alive today has the power to work on undoing it. Four hundred years since its inception, American racism is all twisted up in our cultural fabric. But there’s a loophole: people are not born racist. Racism is taught, and racism is learned. Understanding how and why our beliefs developed along racial lines holds the promise of healing, liberation, and the unleashing of America’s vast human potential.”

I found myself nodding many times as I read this book. When I finished, I wandered around the web and found this TEDx Fenway talk by the author which does a great job of a high-level summary of the book.

I particularly liked this framing:

 

“What I’ve learned is that thinking myself raceless allowed for a distorted frame of reference built on faulty beliefs. For instance, I used to believe:

Race is all about biological differences.I can help people of color by teaching them to be more like me.Racism is about bigots who make snarky comments and commit intentionally cruel acts against people of color.Culture and ethnicity are only for people of other races and from other countries.If the cause of racial inequity were understood, it would be solved by now.”

Dad, Daniel, and I talked extensively about the notion of “Good intentions, bad information.” While it applies to many situations, it’s especially key in applying critical thinking to a complex, or deeply challenging situation, especially one where there is a visceral bias (emotional or intellectual) that appears. Consider applying Curiosity, Courage, and Tolerance by doing the following.

Curiosity: Ask yourself silently, “Why did I just think that thought?” Force yourself to chase down the “why” before you go on.Courage: Resist feeling terrified that you will say the wrong thing. There are lots of different ways to say something with a qualifier that you don’t have any idea whether what you are saying is going to be offensive, interpreted correctly, or correct.Tolerance: Tolerate your own feelings of discomfort, anger, grief, and embarrassment. Take a deep breath and calmly press through into the situation.

There’s a lot more in the book that both challenged me and helped me. I’m sure I interpreted plenty of it wrong, but, in the same way that I’m reading and exploring a lot of feminist literature, I’m going to include explorations of race and ethnicity in the stuff I’m reading.

Daniel – thanks for choosing Waking Up White, and Finding Myself in the Story of Race as one of our monthly books.

Also published on Medium.

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Original author: Brad Feld

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Mar
30

1Mby1M Virtual Accelerator Investor Forum: With Jason Lemkin of Storm Ventures (Part 2) - Sramana Mitra

Sramana Mitra: Am I hearing that when you look back on EchoSign, you feel that you sold too early? Jason Lemkin: I think it was a lucrative and fair financial transaction. What I didn’t realize until...

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Original author: Sramana Mitra

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Mar
30

April 4 – Rendezvous with Sramana Mitra in Menlo Park, CA - Sramana Mitra

For entrepreneurs interested to meet and chat with Sramana Mitra in person, please join us for our weekly informal group meetups. If you are living in the San Francisco Bay Area or are just in town...

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Original author: Maureen Kelly

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Mar
30

Nift raises $16.5M for a new kind of gift card

Nift, which is giving local businesses a new way to promote themselves, has raised $16.5 million in Series A funding.

The businesses that work with Nift (the name is short for “neighborhood gift”) can give special gift cards to their best customers. Those customers enter their codes on the Nift website, answer a few questions and can then choose from two free gifts from other local businesses.

Founder and CEO Elery Pfeffer suggested that this can help smaller businesses stay competitive against Amazon, while avoiding some of the pitfalls of promoting themselves through discount sites like Groupon. For one thing, Pfeffer argued that the person receiving the Nift is “somebody else’s best customer — this is not a bargain hunter motivated by a deal.”

“They’re getting a gift they weren’t expecting,” he said. “We make the selection for them, so there’s no self-selecting bargain hunting going on. That’s what makes the whole thing work.”

The idea is that businesses get new customers in exchange for promoting other merchants. It’s up to each merchant to determine what makes someone their best customer and how many Nift cards they want to give out, but Pfeffer (a data scientist who previously founded influencer marketing company Pursway) said his team has built sophisticated tools to find “the perfect match” between customers and gifts.

This approach has already been pretty successful in Boston, where the company says 250,000 customers have activated more than 500,000 Nift cards. Pfeffer said 86 percent of those customers end up receiving a gift from a business that they’ve either never visited or haven’t visited in the past year. Afterwards, 88 percent of customers said they’re interested in visiting the business again, and a month later, 37 percent have actually done so.

The new funding comes from Spark Capital, Foundry Group and Accomplice and will fuel the startup’s plans to expand to five new markets (in addition to Boston, it’s currently available in Providence and Washington, D.C.).

“Retail has changed dramatically with the widespread adoption of e-commerce, but something has been missing for small businesses at the local level,” said Foundry Group’s Seth Levine in the funding announcement. “Nift is providing a way for merchants to deliver the experiences customers want, while fostering a healthy ecosystem. The success of the platform illustrates the impact it’s already having in strengthening these businesses and revitalizing communities.”

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Mar
30

April 5 – 393rd 1Mby1M Mentoring Roundtable for Entrepreneurs - Sramana Mitra

Entrepreneurs are invited to the 393rd FREE online 1Mby1M mentoring roundtable on Thursday, April 5, 2018, at 8 a.m. PDT/11 a.m. EDT/8:30 p.m. India IST. If you are a serious entrepreneur, register...

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Original author: Maureen Kelly

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Mar
30

What CVS is doing to mom-and-pop pharmacies in the US will make your blood boil

Customers at a CVS store and pharmacy in Cambridge, Massachusetts, on December 4. Reuters

CVS Caremark, the in-house pharmacy benefit manager for CVS, has been accused of squeezing small pharmacies, driving some out of business.Lawmakers in Arkansas and Ohio have been quick to pass laws designed to end this by demanding higher transparency or regulatory oversight.CVS is also trying to buy up small pharmacies, which is much easier to do if they're going out of business.

The short version of what happened to CVS in 2018 is this: The company got too greedy, and then it got caught.

In its greed, the company squeezed independent mom-and-pop pharmacies. The squeezing wasn't being done by the part of CVS you buy dental floss from or visit to pick up a prescription, though it's not unrelated. It's a behind-the-scenes business known as a pharmacy benefit manager, which manages payments between insurers and pharmacies and drug companies.

The mom-and-pop pharmacies say CVS' in-house pharmacy benefit manager, CVS Caremark, slashed reimbursements for medications sold to their patients on Medicaid. At the same time, they say, it was reimbursing CVS pharmacies at much better rates. With some of them on the verge of going out of business, these pharmacies have rallied lawmakers — both Democrats and Republicans — to put an end to this.

So now CVS faces a tide of resistance to the way it deals with smaller rivals. Already, Arkansas legislators have passed a law aimed at curbing this behavior. This is new regulation in a Republican-dominated state. That's how bad things looked to the lawmakers.

Ohio is forcing PBMs to disclose more about the way their pricing and contracts work. Mom-and-pop pharmacists in states like Texas and Kentucky are realizing they have a CVS problem on their hands too. Caremark manages payment for Medicaid-managed care plans in more than 20 states.

This is important because CVS is trying to cut a $68 billion deal to buy a health insurer, Aetna — a deal that would make it even more powerful and more able to obscure the whys and hows of pricing all through the healthcare system.

What's more, CVS isn't the only healthcare company trying to turn into a leviathan. Over the past few years the largest healthcare companies — including insurers, PBMs, hospitals, and drug companies — have been combining in what is known as vertical integration, or mergers between companies in the same industry whose businesses don't directly compete.

They say this is an effort to create efficiency in the healthcare system. What CVS has shown, though, is that this kind of integration can actually get companies drunk on pricing power, and create monopolistic monsters.

In Arkansas

To their credit, once legislators in Arkansas figured out what was happening to local pharmacies, they moved at blinding speed.

The state legislature nearly unanimously passed a bill designed to curb this behavior from PBMs on March 14.

The situation had gotten desperate, fast. The way mom-and-pop pharmacists tell it, CVS started bringing the pain at the beginning of 2018. Suddenly, reimbursement rates for Medicaid plummeted at the same time drug prices for Medicaid started rising. So in the beginning of February, Arkansas Attorney General Leslie Rutledge started investigating the matter.

"The amount paid to the pharmacy was less than half of what was being charged to the plans," Scott Pace, of the Arkansas Pharmacists Association, told Business Insider.

Pharmacists in Arkansas, for example, say:

For a Fentanyl Patch 100, CVS pharmacies were reimbursed $400.65 while mom-and-pop pharmacies were reimbursed $75.74.

For Amoxicillin, CVS pharmacies were reimbursed $35.92 while mom-and-pop pharmacies were reimbursed $12.21.

For even something as simple as Ibuprofen, CVS pharmacies were reimbursed $5.86 while mom-and-pop pharmacies were reimbursed $1.39.

Sometimes, the pharmacists say, they weren't reimbursed enough to cover the cost of filling the prescription. These aren't the only ones, to be clear. Business Insider has seen a long list of alleged disparities like the ones above.

CVS, for its part, denies that it is squeezing the mom and pops. Business Insider sent the above examples to the company, and its spokeswoman Christine Cramer said they were patently wrong. However, she also said the pharmacists were "cherry-picking" reimbursements that look especially bad.

"The facts are that on an aggregate basis, we reimburse independent pharmacies at a higher rate than larger regional and national chains," she said.

"CVS Caremark considers local, independently owned pharmacies to be important partners in creating our pharmacy networks, and in fact, independent pharmacies account for nearly 40% of our network," she added. "Furthermore, we reimburse our participating network pharmacies, including the many independent pharmacies that are valued participants in our network, at competitive rates that balance the need to fairly compensate pharmacies while providing a cost-effective benefit for our clients."

This response did not jibe with what legislators, patients, and pharmacists were seeing on the ground, though.

Out of a $50 drug, for example, say $22 was paid to the mom and pop, the rest went to CVS — to its PBM. At the same time, patients looking at how much a drug cost their health plan in their explanation-of-benefits portal would show a price of, say, $100.

"The numbers were stark," Pace said.

Here's the letter pharmacists are getting, urging them to sell their businesses to CVS. Business Insider So until this was all figured out, people who bought medicines at their local pharmacies in Arkansas (and Ohio) didn't know that their neighbors were getting screwed. They also didn't know that, as their local pharmacists were getting squeezed, CVS was waiting in the wings, sending out letters offering to buy the very mom-and-pop shops it was forcing out of business.

One pharmacist, Rick Pennington of Lonoke, Arkansas, said that if it weren't for his business mailing a generic erectile-dysfunction pill to nine states, he'd be out of business.

"When you look at who's controlling the money and who has the leverage, it's the PBMs who have control," Pace told Business Insider. "These folks are trying to get more integrated into the healthcare system, and so far we've seen that means patients lose. Next, they'll buy a hospital and be an HMO. I think that's bad for patient choice."

He added: "It's not a free market because there is no transparency on pricing."

CVS, however, denies coordination between its PBM and its pharmacies.

"Our retail business has engaged in acquisition activity and outreach to other pharmacies since well before CVS and Caremark merged, and, in fact, the communications materials related to this activity has been relatively unchanged over the years," Cramer said. "Any retail acquisition activity is completely unrelated to, separated from, and not coordinated in any way with the PBM business' management of its pharmacy network."

In Ohio

The story for pharmacists in Ohio is a bit different. There, some have viewed CVS as problematic for years, but instead of seeing reimbursement rates plunge, legislators and pharmacists said they've been moving up and down like crazy since around 2015. By October or November of last year, gross annual margins for Medicaid payments to mom and pops were going below zero, and pharmacists were losing money on most drugs sold.

"Because those rates are set arbitrarily you're set up for a roller-coaster ride," Antonio Ciaccia of the Ohio Pharmacists Association said in a phone interview with Business Insider. "No one expects to get rich off Medicaid ... but if you sat down with a pharmacist that was willing to tell you, 'Here's what I was getting paid,' you could match it up with state-utilization data and see the spread and how significant the loss was... That's what kind of lit everything up in Ohio."

There was also the suspicion that Medicaid was being overcharged. One legislator, after being briefed on what was going on by Ohio's Medicaid agency, said simply, "We're getting hosed."

And of course, CVS sent those letters soliciting acquisitions. One came on November 9 of last year, a particularly bad time for the state's mom-and-pop pharmacists.

Suddenly, the number of people in Ohio government demanding answers, led by Ohio Speaker Cliff Rosenberger, started to multiply. They realized that the Ohio Department of Medicaid wasn't even asking for the right pricing data, and CVS had never considered giving it to them. Now, as rules change within the department, it'll have to.

Brad Miller, Rosenberger's press secretary, said this was something his boss had been looking into for years.

"In order to be responsible stewards of taxpayer dollars, you must have access to reliable and accurate data," he said. "Around the state, we are seeing the negative impact the current system is having on local, independent pharmacies, many of which have been forced to close in recent years. This, in turn, reduces patients' treatment options and access to care. Having access to this data will go a long way toward lowering prescription-drug costs for patients and employers, as well as help reduce the burden on Ohio taxpayers."

Ciaccia told Business Insider that the the three year CVS has been engaging in this behavior it has gained 68 pharmacies in the state. Competitor Walgreens, on the other hand, has only added 2 locations over the same period.

"We are done messing around in Ohio," he said. "This system is completely broken ... It is layered and layered with conflicts of interest. I don't care who the PBM is."

What a tailor can do!

Health Strategies Group PBMs have all sorts of tricks up their sleeves to make money not just from pharmacists, but also from insurers and drug companies — basically anyone involved in getting medicine to you.

Here are a few of their greatest hits:

They can make money (as we've seen here) off the spread between what they pay pharmacists and what they charge your insurance plan. They have gag orders on pharmacists, so your pharmacist can't tell you whether it's actually cheaper for you to use plain old cash to buy a drug that isn't part of your healthcare plan. (Note, the fact that there might even be a cheaper alternative challenges the PBMs' claim that they save money for their clients in the first place.) They get reimbursements from pharmaceutical companies. The fatter the rebate, the more likely they'll include a company's drug in a client's (your) managed-care plan, but they don't have to share that reimbursement with the client (you). They can keep some and negotiate rebates for themselves. They can collect all kinds of administrative fees and other types of fees from drug companies too.

We've been learning about this slowly. Three PBMs — CVS Caremark, Express Scripts, and UnitedHealth Group — control about 70% of the US market, and they guard their secrets zealously. Recently, though, the news site Axios published a contract template for Express Scripts. No two contracts are alike, and Express Scripts grumbled that the one Axios published (which was rife with loopholes to make Express Scripts money at every turn) was old and irrelevant.

Yet the company demanded that DocumentCloud, where the contract was posted, immediately take it down, citing copyright infringement.

This "Oh it doesn't matter to our business — but 'DON'T TOUCH THAT!'" response is trending in PBM world.

For example, earlier this month the US Senate introduced the Patient Right to Know Drug Prices Act, which would ban the so-called gag clauses mentioned above, just like Arkansas lawmakers did.

The Pharmaceutical Care Management Association, the PBM lobby, responded to that by saying:

"We support the patient always paying the lowest cost at the pharmacy counter, whether it's the cash price or the copay. This is standard industry practice in both Medicaid and the commercial sector. We would oppose contracting that prohibits drugstores from sharing with patients the cash price they charge for each drug. These rates are set entirely at the discretion of each pharmacy and can vary significantly from drugstore to drugstore."

Sounds as if they're for it, right? Wrong. Here's the next sentence.

"Fortunately, to the degree this issue was ever rooted in more than anecdotal information, it has been addressed in the marketplace."

Rep. Earl "Buddy" Carter of Georgia. C-Span, screenshot So which is it, guys? Do you think transparency is important and support patient rights — or are you going to fight this bill?

It's a simple question. And it's easy to see the answer.

Rep. Buddy Carter, a Georgia Republican, introduced the Prescription Transparency Act to the US House of Representatives this month. It does basically the same thing as the Senate bill, and, as the only pharmacist in Congress, he knows he's facing a street fight from the PBM lobby.

"They spent $600,000 against me when I first ran for office three years ago to try to get me defeated, and over the past few years we've seen them ramp up their political activity," Carter told Business Insider. He's also noticed that legislators in Washington are finally waking up to the urgency of this situation. There have been hearings about drug pricing in both houses, and Scott Gottlieb, the commissioner of the Food and Drug Administration, has come out swinging especially hard, saying that the PBMs sit at the top of a "rigged system."

"We've seen some companies that dropped the PBMs such as Caterpillar and they've been able to control drug prices," Carter said in a phone interview. "Right now the focus is on prescription drug pricing, and the most impact we can have on pricing is to have control on transparency from the PBMs."

If you believe that, you should also believe taking that control won't be easy. Once we do, though, it may change the way you look at what our healthcare is trying to become.

Original author: Linette Lopez

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Mar
30

SoftBank's $100 billion mega-fund made it much harder for young tech startups to raise finance — here's why

SoftBank CEO Masayoshi Son with US President Donald Trump. Brendan McDermid/Reuters

There's been a drop-off in global early-stage startup funding over the past year, according to a report from Delta Partners.That's partly down to the rise of corporate venture funds, which are putting more money into "big bets" such as Uber and office sharing company WeWork.SoftBank has been the biggest driver of this trend with its $100 billion Vision Fund.Early-stage startups are finding it tougher to raise money as funders become more risk-averse.

When Business Insider recently asked one prominent European fund manager what he thought about SoftBank, he raised his eyebrows and said: "It's a spaceship."

The Japanese telecoms giant, and specifically its $100 billion (£71 billion) Vision Fund, has rewritten the rules of venture capital over the past 12 months, and investors and startups are still adjusting.

The Vision Fund is essentially a gigantic corporate venture fund that drops huge amounts of money into both well-established tech firms and promising startups. The amount of money it has at its disposal is unprecedented, and has shifted the dynamics of venture funding around the world.

SoftBank has taken an 17.5% stake in Uber, and dropped $502 million into Improbable, a UK gaming software firm. It's also active in Asia, with a stake in Indian Uber rival Ola.

According to a new report from tech consultancy Delta Partners, seen by Business Insider, SoftBank kickstarted a trend last year of funding mega-rounds — which benefited late-stage companies but put a serious squeeze on seed-stage financing.

In other words, it became a lot harder for early startups to raise funding.

Here's a chart — you can see the global number of deals in 2017 was down, with particular impact on the seed stage. That means early-stage startups found it tougher to raise venture funding.

Delta Partners

And here's another set of charts showing that growth-stage companies are getting a bigger piece of the funding pie:

Delta Partners

The data reflects real-world worries around early-stage funding.

Young startups are a naturally risky place to put your money — they're not making much revenue, and maybe haven't worked out whether there's even much demand for whatever they are building. Unsurprisingly, investors are averse to that risk, so it falls to specialist early-stage funds and individual angel investors to get these firms going.

One British seed investor told Business Insider this week that, with the UK's economy lagging, there's anecdotal evidence to suggest angels are putting their money somewhere other than startups. And the crash in early-stage funding clearly isn't just limited to the UK, as shown by Delta Partners' data and other reports.

SoftBank, and the rise of big corporate funds, points to a trend of more money going into dominant players, such as Uber and office-sharing company WeWork, who might "win" their entire market. They represent a safer bet — if anything in tech can be considered safe.

Delta Partners

Delta Partners predicted in its report that early stage funding will recover, and that Asia and Europe will have a role to play here. But it looks like the megafunds and their megarounds are here to stay.

Original author: Shona Ghosh

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Mar
30

These may be the last photos of the Chinese space station before it falls to Earth

Maximilian Teodorescu captured an image of Tiangong-1 passing in front of the sun.Courtesy of Maximilian Teodorescu

The Chinese space station Tiangong-1 is in its final hours and will most likely fall to Earth early in the morning on April 1.Maximilian Teodorescu, a researcher from Romania, was able to capture images of Tiangong-1 passing in front of the sun.It'll likely be one of the last times we see Tiangong-1 — at least, aside from debris that is likely to survive the burn and land on Earth.

The bus-sized Chinese space station Tiangong-1, known as "Heavenly Palace," is whipping around our planet in the final hours before it burns into Earth's atmosphere. In the very near future, it will break up, with some of its debris likely falling to Earth.

In these final hours, Maximilian Teodorescu, a scientific researcher with the National Institute for Lasers and Plasma in Bucharest, Romania, was able to photograph Tiangong-1 as it made a transit passing in front of the sun.

In Teodorescu's photo above, you can see the space station's transit.

An illustration of China's Tiangong-1 modular space station orbiting Earth.Aerospace Corporation

This photo is likely one of the last times Tiangong-1 will be seen before its journey, which began when it was launched in 2011, comes to an end on or around Easter Sunday (April 1).

Teodorescu told Business Insider that he's been interested in astronomy for about two decades now. His interest starting with science fiction before he moved on to real-life space programs.

"It is fascinating still for me to know that humans are trying to get out of their perfect habitat down here on Earth and try to find other habitable worlds in our Solar System and beyond. It's perhaps the most important era of the Human Civilization," Teodorescu said in an email.

"And the still small steps we take, like the ISS and other space stations, are proof that this part of our evolution is occurring right now. And I must take advantage of this moment, and at least image these technical marvels, if not be a part of the programs. This is why I try to catch any close transit in front of the Moon or Sun whenever I can."

Follow the station's pass-by in the GIF below.

The Tiangong-1 modular space station is expected to fall to Earth in a fiery blaze.

But at the moment, it's just one of about 23,000 other human-made objects larger than a softball zooming around the planet.

China stopped using the two-room, 9.4-ton vessel, in June of 2013. The Chinese program lost touch with Tiangong-1 — its first space station — in March of 2016. The station is now losing forward speed, which means that gravity is pulling it towards Earth faster and faster, with the air around it too thin to slow it down.

But as it enters the atmosphere, the situation will change.

When the spacecraft falls into thicker air, the drag will begin to rip off solar panels, antennas, and other loosely attached pieces. Superheated plasma will heat the vessel to thousands of degrees, melting and disintegrating it.

Little will survive. Even though there are layers of protective material and substances like titanium on board, some parts, including potentially re-usable gear and hardware, are likely to survive re-entry.

It's possible there will be a 1,000 mile-footprint of debris, Bill Ailor, an aerospace engineer who specializes in atmospheric reentry, told Business Insider.

It's more likely than anything else that most debris will fall into the ocean, which covers 71% of Earth's surface. The chances of a piece hitting a person "is about 1 million times smaller than the odds of winning the Powerball jackpot," according to The Aerospace Corp., where Ailor works.

"It's not impossible, but since the beginning of the space age ... a woman who was brushed on the shoulder in Oklahoma is the only one we're aware of who's been touched by a piece of space debris," Ailor said.

Original author: Dave Mosher and Kevin Loria

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Mar
30

Roam debuts a robotic exoskeleton for skiers

Roam, a San Francisco-based robotics startup, has just debuted a lower-body robotic exoskeleton aimed firmly at skiers. The company’s first product doesn’t stray too far from nearby Ekso Bionics, where CEO and founder Tim Swift worked previously — though the simply titled Robotic Ski Exoskeleton trades warehouse work and mobility assistance for the admittedly more exhilarating world of downhill skiing.

The product is essentially a pair of braces that strap on the wearer’s thighs, connecting to ski boots on one side and a small backpack on the other. The braces absorb shock, provide support and generally make you look like some crazy cyborg sent back from the future to punish snow.

A combination of built-in sensors and software adjust the system’s fabric and air actuators, providing additional support to the quadriceps. That all happens automatically, though users can also opt to control the thing manually, as well.

In spite of only announcing this week, the company says its “first releases are already spoken for,” meaning interested parties will have to join a waiting list to get their hands on it. And that’s honestly probably perfectly fine as they’re only available in the U.S. for now, and spring is finally upon us.

When they are more widely available, they’ll run somewhere in the ballpark of $2,000 to $2,500. Pricey, but no one ever said skiing — or being a robot — was going to be an affordable hobby.

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Mar
29

Mark Zuckerberg says a Facebook exec's memo justifying deaths in order to grow the network was a 'provocative' thing he disagrees with strongly (FB)

Andrew "Boz" Bosworth Andrew Bosworth

Andrew "Boz" Bosworth wrote a memo in 2016 saying that it is Facebook may kill people because the platform connects people.After the memo was first reported by BuzzFeed News, Boz tweeted that he didn't agree with the memo when he wrote it.CEO Mark Zuckerberg also released a statement saying he disagreed with the memo.

Facebook CEO Mark Zuckerberg denounced comments from one of his top executives on Thursday, following the publication of a 2016 internal memo in which the executive appeared to argue that the social network's growth objectives outweighed any harmful side-effects, including deaths, that could result from the use of the service.

The memo, written by Facebook VP Andrew "Boz" Bosworth and published by BuzzFeed on Thursday, was "one that most people at Facebook including myself disagreed with strongly," Zuckerberg said in a statement provided to Business Insider.

"We've never believed the ends justified the means," Zuckerberg said. But Zuckerberg defended the memo's author, one of his most trusted confidants, calling Bosworth a "talented leader who says many provocative things."

The comments mark the latest efforts at damage control by Zuckerberg as the 2-billion member social network he founded comes under fire for a variety of problems including its role in spreading false news and the unauthorized use of its user data by a tech firm linked to the Trump 2016 presidential campaign.

Longtime exec Andrew "Boz" Bosworth (pictured left) and Mark Zuckerberg Facebook According to the BuzzFeed report, Bosworth wrote the internal memo entitled "The Ugly," as part of the company's efforts to come to terms with some of the unintended consequences of its extreme growth that were beginning to become clear at the time.

"So we connect more people," Bosworth wrote in the memo. "That can be bad if they make it negative. Maybe it costs someone a life by exposing someone to bullies. Maybe someone dies in a terrorist attack coordinated on our tools."

"The ugly truth is that we believe in connecting people so deeply that anything that allows us to connect more people more often is *de facto* good," Bosworth continued.

Bosworth, who has been at Facebook since 2006, is known for being outspoken and has found himself at the center of controversy several times during the past year.

Following the publication of the memo on Thursday, Bosworth sought to distance himself from the remarks.

"I don't agree with the post today and I didn't agree with it even when I wrote it," Bosworth said in a statement he posted on his personal Twitter account.

"The purpose of this post, like many others I have written internally, was to bring to the surface issues I felt deserved more discussion with the broader company," the statement reads.

Read the full memo on BuzzFeed.

Original author: Rachel Sandler

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Mar
29

Tesla issues its largest recall to date, affecting 123,000 Model S vehicles (TSLA)

Tesla Model S P100D. Bryan Logan/Business Insider

Tesla has issued its largest recall to date, involving the Model S luxury sedan's power steering system.Five bolts holding the power steering motor in place can corrode and either come loose or break, possibly causing a loss of power steering. Manual steering would still work, however.The recall affects some 123,000 Model S vehicles worldwide, that were built before April 2016.

Tesla has issued a worldwide recall related to the power steering systems in 123,000 of its electric Model S vehicles.

Five bolts holding the power steering motor in place can corrode and either come loose or break, possibly causing a loss of power steering, the company said in an emailed statement on Thursday. Manual steering would still work in such a case.

According to Tesla, the problem is infrequent and typically occurs in cold-weather regions where salt is used to clear snow and ice on the road. No accidents or injuries have been reported, Tesla said.

The voluntary recall is specific to Model S cars that were built before April 2016, but has so far affected only 0.02% of the Model S vehicles in the US that fall under the recall's guidelines, according to the automaker.

The recall adds to a tumultuous run for Tesla of late. Here's a portion of what's happened so far:

Federal investigators are looking into a fatal crash involving a Model X SUV that hit a highway barrier in Northern California last week. Moody's downgraded Tesla's corporate credit rating due to multiple concerns, including production troubles surrounding the Model 3 entry level sedan. Tesla's stock has fallen about 25% over the last 12 trading days. And a Delaware judge on Wednesday refused to dismiss a shareholder class-action lawsuit against CEO Elon Musk and Tesla's board, over the company's multibillion 2016 acquisition of the energy company SolarCity.

There's also the matter of Tesla's balance sheet which has been looking morbid ahead of the car company's first-quarter earnings report, which is expected in a matter of weeks.

Tesla is also set to update shareholders on Model 3 production, which got off to a crawling start last July, and hasn't yet touched the company's original target of 5,000 units per week. Tesla slashed that target by half in January, promising to crank out 2,500 per week by the end of March.

But it looks like Tesla is climbing to just over 1,000 Model 3 units per week, according to unofficial data from Bloomberg.

In fall 2017, Tesla said it could produce 1,500 Model 3s in September alone, and 20,000 of the cars per month by December that year.

The last major voluntary Model S recall occurred in 2015, when the company summoned the entire fleet over a single Model S vehicle that experienced a seat belt malfunction.

"In order to ensure your safety, Tesla will proactively retrofit a power steering component in all Model S vehicles built before April 2016. (No other Tesla vehicles are affected.) There have been no injuries or accidents due to this component, despite accumulating more than a billion miles of driving.

To be clear, this recall does not apply to any Model X or Model 3 vehicles, only to Model S vehicles built before April 2016.

We have observed excessive corrosion in the power steering bolts, though only in very cold climates, particularly those that frequently use calcium or magnesium road salts, rather than sodium chloride (table salt). Nonetheless, Tesla plans to replace all early Model S power steering bolts in all climates worldwide to account for the possibility that the vehicle may later be used in a highly corrosive environment.

If the bolts fail, the driver is still able to steer the car, but increased force is required due to loss or reduction of power assist. This primarily makes the car harder to drive at low speeds and for parallel parking, but does not materially affect control at high speed, where only small steering wheel force is needed.

Our records show that you own a Model S affected by this voluntary recall. At this time there is no immediate action you need to take and you may continue to drive your Model S. Tesla will contact you to schedule an appointment when parts are available in your region. The retrofit will typically take around an hour."

Original author: Bryan Logan

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Mar
29

New York City just launched a free app to protect people's phones because cyber criminals are becoming a bigger threat

NYC Secure will be available for iPhone and Android users this summer.Brendan McDermid/Reuters

NYC Mayor Bill de Blasio unveiled a new mobile app on Thursday that will help protect New Yorkers online for free.The app is called NYC Secure and will help people monitor insecure WiFi networks and malicious content on their phones.Amid privacy concerns, city officials said the app will not collect any personal data.It will be available for download starting this summer.

NYC Mayor Bill de Blasio introduced a new mobile phone app that will help New Yorkers protect themselves online.

NYC Secure, which iPhone and Android users will be able to download this summer, will help people avoid unsafe WiFi networks and detect malicious content and apps on their devices.

"Now that our lives are more and more online, it's our job to make sure people's lives are safe online," de Blasio said at a news conference Thursday. "Our streets are already the safest of any big city in the country — now we're bringing that same commitment to protecting New Yorkers into cyberspace."

The app will:

Monitor the device for abnormal behavior and alert the user to that behavior Warn the user when joining a WiFi network that is known to contain malicious content Let the user know about insecure mobile apps downloaded from the app store

While the idea for the app was conceived by officials at NYC Cyber Command (NYC3), a government agency overseeing the city's cyber defenses, the app itself was built by an outside partner.

New York City Mayor Bill de Blasio said the initiative will cost $5 million a year. Reuters/Brendan McDermid

Geoff Brown, the chief information security officer for NYC, stressed that the app will collect "zero personal data" from those who download it.

"Our intent is to have [the app] designed in a way that at the very code level, it is only doing the things that we prescribe for it to do and it is doing nothing else," Brown said during a briefing with reporters on Wednesday. "It will not be taking a list of all the apps and sending it to a third party, to us, or anyone else. It'll only be performing the functions that are necessary to guide the user away from threats."

While the initiative is being targeted to New Yorkers, the app will be available to anyone based in the US.

In addition to the app, city officials also unveiled a city-wide effort to add a new layer of protection to public WiFi hotspots so that people will be alerted whether a guest or public network is secure.

Brown said the city will deploy the initiative across all NYC government agencies' public WiFi networks by the end of the year. The city is working in partnership with Global Cyber Alliance, an international cybersecurity group that combats cybercrime.

The NYC Secure app and WiFi protection initiatives will cost the city $5 million annually, de Blasio said.

The announcement comes amid increasing cyberattacks aimed at virtually anything connected to the internet.

Just last week, a group of hackers breached government computer systems in Atlanta, a situation the city's mayor, Keisha Lance Bottoms, described as "a hostage situation."

The incident has raised concerns about how prepared government officials are when it comes to protecting critical infrastructures and people's personal information.

Brown said NYC Secure is an attempt to ease those concerns.

"We don't think necessarily cybersecurity solutions should only be the purview of people that either have an incredible amount of knowledge to protect themselves or an incredible amount of money to buy protection," he said.

Original author: Brennan Weiss

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Mar
29

One of the data companies that Facebook just kicked off its platform is livid: 'We are getting thrown under the bus'

Noah Berger/AP

One of the data companies Facebook is planning to remove from its ad-targeting program has come out swinging.Acxiom CEO Scott Howe told Business Insider that Facebook is deliberately cutting off third-party data vendors to distract from its botched handling of the Cambridge Analytica mess.''We are getting thrown under the bus,' Howe said. "This was a masterful political manipulation."

A lot of people are not happy with Facebook right now. Add Scott Howe to the list.

Howe is the president and CEO of Acxiom, which collects consumer data from a wide variety of sources - data that has been employed by marketers for decades. It's also one of the companies that Facebook said it plans to stop working with for ad targeting.

Late Wednesday, Facebook announced plans to wind down a program that enabled advertisers to use data from third-party companies — ranging from Oracle to Acxiom — to target its users with specific ads.

Facebook has positioned that move as being aimed at better protecting consumer privacy in light of the ongoing fallout from the Cambridge Analytica scandal, which came to light when The New York Times and The Guardian reported that it had improperly obtained user data on as many as 50 million Facebook users.

Howe said that Facebook didn't give Acxiom a heads up regarding the decision. Beyond that slight, Howe believes that Facebook is using Acxiom and its other data partners as scapegoats to distract from its own problems.

"We are getting thrown under the bus," Howe told Business Insider. "This was a masterful political manipulation."

Howe is livid that Facebook has moved to push out data partners, even though the Cambridge Analytica controversy didn't directly have anything to do with them. "The trouble was in Facebook managing its own data," he said. "And this doesn't actually offer individuals any more protection."

Acxiom pulls data from a wide variety of sources, including public records, consumer surveys, retail records, and other vehicles to help brands tap into profiles of consumers. Howe's argument is that his company's sole focus is on protecting consumer data.

"So to blame us is hypocritical," he said. "Their statements are also so inconsistent. This is really about their walled garden. They are forcing advertisers to be reliant on Facebook reporting only. It helps them consolidate more power."

"That is awful for advertisers."

Facebook was not immediately available for comment.

Original author: Mike Shields

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