Graeme Thickins on Tech

Reflections & analysis about innovation, technology, startups, investing, healthcare, and more .... with a focus on Minnesota, Land of 10,000 Lakes. Blogging continuously since 2005.

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Which Minnesota Accelerator Has Graduated 18 Healthcare Startups in the Last Year?

If you know how startup accelerator programs work, 18 is a seriously impressive number to achieve in 12 months. Having a program that can put that many startups, that quickly, through a rigorous process, enabling them to launch effectively out into the world, deserves some major praise. And I’m about to give it to them.

Hats off to gBETA MedTech! And especially to the program manager who runs it, Adam Choe. Adam is the man! If you’re not familiar with this program (a part of gener8tor Minnesota), it’s a free, seven-week accelerator that works with medical device, healthcare-gBETA MedTech logorelated software, biotech, and diagnostics startups. In 2018, it successfully ran three — count ’em, three! — cohorts of six startups each. So, yes, it prepared a total of 18 healthcare-related startups, from Minnesota and beyond, to go out and raise money, continue their product development, build out their teams, and start hitting their milestones. And it did all that very, very well.

I can say that because, as a gener8tor mentor since 2016, I was involved throughout. I have met and heard the pitches of every single one of those 18 startups — at least twice, actually. The highlight is always the final pitch of these startups at the demo night for each cohort, called “LiveBeta,” an event attended by at least a few hundred folks here in the Twin Cities (a large percentage of which are investors). That is where these founders shine! And you can really see the progress they’ve made during the seven-week program.

Scene at LiveBeta demo event on January 16, 2019

Hundreds gathered at the JJ Hill Center in St. Paul to hear the Fall 2018 gBeta MedTech class give their pitches.

I have never ceased to be impressed when I attend these demo nights that gener8tor and gBETA put on (and I’ve attended each and every one since gener8tor came to Minnesota in 2016). These founders get on stage and deliver amazing, very well prepared pitches that really focus great attention on the problem they’re solving and the attendant market opportunity. (And they each must have a total addressable market of hundreds of millions of dollars, or more, to participate in the program.)

Logos of the 18 gBETA MedTech startups in 2018

The 18 startups that completed the gBETA MedTech program in calendar year 2018.

You can bet you’ll be hearing more about many of these startups going forward. Remember these 18 names! You can click through and read more about them on gBETA MedTech’s site here.

And what’s more impressive than 18? Well, try 23. That’s actually the total number of startups that gener8tor graduated here in Minnesota during 2018 when you count the five that went through its main equity program during the summer.  (One of which is healthcare.) Congratulations to those startups as well: Cellular EMT, FaithBox, Onepanel, SpeechMed, and Virtue Analytics. I wrote about that cohort here.

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P.S.  I should also mention here that the very first gBETA startup I mentored, which was part of the first class in Minnesota in late 2016, happened to be healthcare related — and it went on to be acquired just two short years later: CoreBiome. Congrats to them!

The Story Isn’t the iPhone Xs – It’s What’s In It: the A12 Bionic Chip

iPhone Xs

Click on image to enlarge.

Maybe you heard there was an Apple event? And a new phone, the iPhone Xs? And I’m guessing you saw a gazillion media stories, too, about how darn expensive it was, right? That’s actually a major pet peeve of mine — the lamestream media just cannot let go of that same tired old line. Who can afford these things? How will people ever pay that much for a phone? Blah, blah, blah. Well, you know how it always turn out. Um, Apple does okay.

Three things make that lame media line pathetic. First of all, it isn’t just a phone — it’s a supercomputer. (Do you know what those used to cost? Meaning the equivalent computer power, not that long ago.) Second, it’s the computer you use the most, if you’re like most people. (And for some people, it’s their only computer.) From that perspective, the iPhone is downright cheap. Have you ever paid multiple times the cost of an iPhone for a computer? One that won’t fit in your pocket. I sure have.

And, third, hardly anyone pays for an iPhone upfront, anyway. Small monthly payments make it like a utility. Less money than what many people spend monthly at Starbucks.

So, now that I’ve totally destroyed that meme, I’ll get to the point of this post… 🙂  And that is this: not only is the iPhone Xs a bargain, but it is by far the best smartphone out there, ever,  because of what powers it: the A12 Bionic chip.

Here’s what some very smart journalists say on that subject:

Stephen Shankland, CNet (“A12 chip gives Apple big advantage over rivals“):

Click on image to enlarge.

The A12 is the industry’s first chip to be built using a 7-nanometer manufacturing process. A nanometer is a billionth of a meter, so when Apple moved from the A11 chip’s 10nm process to the A12’s 7nm, it meant the company could stuff twice the number of circuit elements called transistors into the same surface area. In the case of the A12, that’s 6.9 billion transistors.

You don’t necessarily need to understand the nuances of transistor sizes or just how small a nanometer really is. The bottom line is that the advancement will let the iPhone XS and XS Max run graphics 50 percent faster than 2017’s iPhone X, while artificial intelligence software will work 8 times faster. And perhaps most important, your battery won’t get drained.

The A12 “is so far ahead of the industry that it will still be competitive with the best Android smartphones in two years, and massively more powerful than lower-end phones,” said Stratechery analyst Ben Thompson.

The real advantage of the 7nm process is that Apple can do it all without flattening your battery. “The lower power can extend battery life or allow Apple to push the performance up by 20 percent when the user needs the extra boost,” said Linley Group analyst Linley Gwennap.

The chip industry has been in a pickle for more than a decade as the previously steady progress in ever-faster processor clock speeds sputtered. That’s forced chipmakers to figure out other ways to try to make chips better, because no longer does the same software automatically run faster with each new chip generation.

5 trillion operations per second

Click on image to enlarge.

Special-purpose circuitry has been one primary coping mechanism. First came graphics processing units, or GPUs, which accelerate not just gaming effects like hazy air and gleaming chrome, but also physics calculations that make explosions look real. Apple’s A11 chip had three GPU engines called cores, but the A12 has four.

More recently, chipmakers have begun adding chip technology to accelerate artificial intelligence chores. AI — also called machine learning and neural networks these days — can let devices understand speech commands, take better photos and recognize unhealthy heartbeat patterns. The A12’s built-in AI circuitry can perform 5 trillion operations per second, an eightfold increase over the A11.

Apple is in a strong position compared to some phone rivals because it controls not only the processor but the operating system and other software like speech recognition and photo apps. The company can ensure all the parts of the system work well together.

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Om Malik, Partner, True Ventures, and Founder, GigaOm (a portion of his notes on the Sept 12 Apple Event)

That new shiny new A12 Bionic chip with more cores in its neural engine, ability to do way more with its GPU and CPU… seriously— this is the most impressive work…. this is some chip nerd nirvana. Here are some facts about the A12 Bionic. It has:

Click image to enlarge.

• 6.9 billion transistors.
• Two high-performance CPU cores deliver 15% more speed and 40% greater efficiency compared to the A11.
• Four other CPU cores are 50% more efficient than those on the prior chip.
• Six-core GPU designed by Apple. It is 50% faster than the block on the A11.
• New neural engine sports eight cores, versus two in the A11, giving it a nine-fold performance bump vs. A11.
• CoreML machine-learning framework can hit 5 trillion operations/sec, versus 600 billion ops/sec on the A11 using one-tenth of the energy.

What does all this mean? This is the first serious edge-computing device with more oomph than many laptops. The neural engine can now do a lot of those things Google does in the cloud — on a device. When it comes to automatic video editing and stuff such as the identification of faces, we are going to see the power of this chip. The gaming demos and the ARKit 2 demos, should be enough of a clue as to what this new chip can enable…  there is something special about the iPhone Xs. And that’s Bionic!

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James Vincent, The Verge (“A12 Bionic chip ‘the smartest and most powerful chip ever in a smartphone’):

The end result should be the same as ever: faster apps… More tangible, though, will be the new functionality enabled by this sort of processing muscle. Particularly apps that use the company’s machine learning framework, Core ML, which the new A12 Bionic runs nine times faster than last year’s chips.

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Rick Merritt, EE Times, in his report after the Apple event:

A12 Bionic chip. © Apple Inc.

Click on image to enlarge.

The (A12’s) performance will speed a variety of operations, including unlocking the phone using Apple’s facial-recognition software. It also enables a new capability to group multiple Siri functions into shortcuts.

Third-party developers showed applications using Apple’s CoreML and ARKit 2 frameworks to enable new features supported by neural nets. They included Homecourt, an app tracking six metrics of basketball performance in real time, as well as new features in mobile games using augmented reality.

“The A12 is a game changer,” said Tim Bajarin, a veteran Apple watcher and president of Creative Strategies…

The iPhone XS and XS Max include dual 12-Mpixel-wide and telephoto cameras… (which) support a variety of features, including HDR10 and adjustable depth-of-field, relying on an image processor and the neural engine in the A12. “This is a new era of computational photography,” said Phil Schiller, Apple’s vice president of marketing.

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I didn’t need any more convincing than that, plus what I saw with my own eyes watching the live stream of the event. I ordered up an iPhone Xs Max as soon as I could, to replace my iPhone X, which I got in late 2017. I’m on the iPhone Upgrade Program, so the process is easy. I make monthly payments for my phone, automatically deducted from my business account, and I can upgrade to the latest model once per year. The net upcharge for me this time? Only five dollars more per month! … to get all the amazing new features and performance of the iPhone Xs Max. (I also had to pay off a small balance on my previous contract, as I was two months shy of a year with the iPhone X.)

It was the No-Brainer of the Century for me! And my new iPhone arrives within about two weeks.

Explore the World of Ecommerce Best Practices, Technology, and Trends in Minneapolis Sept 27

Irish Titan has announced its fourth annual Ecomm Forum conference to be held at the Aria event  center in downtown Minneapolis on Thursday, September 27, 2018.  The event, which attracted 300+ last year, will feature a host of great speakers, panelists, and sponsors. Registration begins at 1:00 pm, and  the event closes with a reception that wraps up at 7:00 pm (See a schedule here, which will be updated as the date gets closer.)

If you are involved in any way in ecommerce (who isn’t?), you should get yourself there. Tickets are only $30-40, right here on Eventbrite.

Ecomm Forum 2017 wide shot

The scene at last year’s Ecomm Forum.

Sponsors include many established players in the ecomm space, including DotMailer, ShopifyPlus, Magento, Big Commerce, Vertex, Avalara, Akeneo, Emarsys, and Siteimprove.

Darin Lynch

Darin Lynch, Founder, Irish Titan

IrishTitan, an ecommerce and digital strategy agency, has come  a long way since Darin Lynch launched it in 2004. I love what he’s built, the branding, the tagline (“Business First, Online Second”), the culture, the team. They have a ton of fun, support the community with sponsorships of their own, and the make the list of ‘Best Places to Work’ over and over again. Clients include Haskell’s, ApplianceSmart, Bank Cherokee, Fidelity Bank, Funky Chunky, Harbinger Partners, Heartland Equity Partners, National Camera Exchange, Rave Sports, The Patchery, and more.

Kudos to you, Darin, and the staff who puts such a great conference together!

gener8tor Minnesota Names 2018 Cohort

In what may be the worst-kept secret of the year, gener8tor today formally announced the five startups it accepted into its 2018 Minnesota program. The 12-week summer program officially kicked off the week of June 25th, but they tell me it always takes a while for all the legal paperwork to be completed — thus the delay in an official announcement, even though many in the Twin Cities community already knew. Nonetheless — ta-dah! — here’s the 2018 class, selected from some 800 applications it received from throughout North America:

CellularEMT
Detroit, MI
Dwain Watkins, CEO

CellularEMT connects certified technicians who provide a variety of on-demand services (e.g., cell phone repair, technical support) to consumers. By tapping into the gig economy, CellularEMT offers a lower cost, higher quality service than traditional tech support (i.e., Geek Squad), while providing entrepreneurial contractors higher earning potential than traditional employment. CellularEMT piloted with smart device screen repair, and has grown monthly revenue from $10,000 to $37,000 from January to May 2018.

Faithbox
Omaha, NE
Jeff Smith, CEO

Faithbox provides monthly subscription boxes to the Christian market with proprietary devotionals, books, and products that benefit charitable projects (e.g., fund a school for disabled children in Kenya and health insurance for their mothers). Faithbox also partners with Christian musicians, authors, and organizations to offer custom co-branded subscription boxes to their audiences.

As the Christian brick-and-mortar retailer market shrinks (i.e., fewer books on the shelves at Walmart), Faithbox allows vendors to move the displaced inventory directly to consumers while buying that inventory at discount prices. In addition, Faithbox’s unique partnership with Christian artists and influencers (many of whom have millions of followers) leverages the partners’ brands to drive down acquisition costs and reach a larger audience. Faithbox is an Omaha-based Delaware C-Corp. It generates $180,000 MRR and is growing at 10%+ per month.

Virtue Analytics
Woodbury, MN
Vikas Mehrotra, CEO

Virtue Analytics (previously called Manboat) allows educational institutions to leverage the power of machine learning and predictive modeling to make better decisions across the admissions process. Customized to the institution’s environment, Virtue Analytics provides student-specific recommendations, related to admissions, financial aid & retention, enabling better outcomes for the student and delivering increased revenue to the institution.Virtue Analytics logo

Historically, admissions departments have relied on intuition, guesswork, and Excel spreadsheets to determine the amount of financial aid to offer in a manually intensive, sub-optimized manner. With Virtue Analytics, these decisions are optimized, automated using self-tuning algorithms that allocate available financial assistance by neither over funding (and wasting money) or under funding (and burdening a student with debt). Since going live in January 2018, it has secured contracts totaling $76K ARR with expectations to reach $240K ARR by December 2018.

Onepanel
San Francisco, CA
Donald Scott, COO

Onepanel allows companies, researchers, and students access to the same world-class machine learning and artificial intelligence tools that are used by Google and Facebook. Onepanel takes months and hundreds of thousands of dollars of investment in infrastructure and provides the same toolset as a platform, available at a click of a button. Onepanel’s suite of tools makes machine learning available for highly technical researchers and non-technical analysts alike, allowing them to collaborate and build on each other’s work.

SpeechMED
Miami, FL
Susan Perry, CEO

SpeechMED’s smart device application speaks medical information to patients in the language they understand. SpeechMED’s application removes obstacles to clear communication regardless of language preference, age, vision, and literacy level by playing the information out-loud in the patient’s native language and simplifying medical jargon into simple instructions. SpeechMED empowers patients and their caregivers to understand vital medical information resulting in improved health literacy, higher rates of medication adherence, reduced chance of medical mishap, and the resulting costs to payers. It is a Miami, Florida based Delaware C-Corp. and has a paid pilot at Baptist Health for $10,000.00 per month.

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About gener8tor

gener8tor is a nationally ranked accelerator that invests in high-growth startups. Three times a year, it invests $90K in each of five startups who receive a concierge experience during its 12-week accelerator program. (The program takes place in each of three cities: Madison, Milwaukee, and Minneapolis.) gener8tor supports the growth of these startups through its network of experienced mentors, technologists, corporate partners, angel investors, and venture capitalists. To date, 71 gener8tor alumni have cumulatively raised more than $150M in follow-on financing. Of these 71 alumni, 58% have raised more than $1M in follow-on financing or have been acquired. gener8tor invests in high-growth startups, including software, IT, web, SaaS, life science, medtech, e-commerce, and hardware. gener8tor is a proud member of the Global Accelerator Network (GAN) and is sponsored by American Family Insurance. It is a GOLD-tier accelerator in the U.S. as ranked by the Seed Accelerator Rankings Project.

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Disclosure: I’m a mentor for gener8tor Minnesota.

Minnesota-Raised Entrepreneur Jeremy Allaire Making Big Bet on Blockchain

(Note: as a followup to my post a while back, So What’s Happening in Bitcoin and Blockchain in Minnesota, I thought it would be interesting to tell you about another Minnesota connection of sorts in the blockchain/crypto world.)

Jeremy Allaire, CEO, Circle

Jeremy Allaire, CEO, Circle Internet Financial. (Photo credit: Getty Images.)

For a serial entrepreneur who got his start right out of college in his home state of Minnesota, Jeremy Allaire has had quite a ride. Soon after graduating from Macalester College in St. Paul, he and brother J.J. founded Allaire Corp, an Internet software tools company. After a couple of years in  Minnesota, the firm migrated to Cambridge MA to take a VC infusion. In 1999, it had a successful IPO and soon after was acquired by rival Macromedia for $360 million. Jeremy served as CTO of that firm for a few years, then in 2003 joined VC firm  General Catalyst Partners as an executive-in-residence.

In 2004, Jeremy founded Brightcove, an online video platform used by many top media and marketing organizations worldwide. There, he raised close to $100 million in four rounds and had a successful IPO in 2012. He still serves as Chairman of the Board of Brightcove.

In 2013, Jeremy announced the launch of Circle, an Internet-based consumer finance company that aims to bring the power and benefits of digital money, such as Bitcoin, to the mainstream. As CEO of Boston-based Circle, Jeremy has raised $135 million in four rounds of VC, including $50 million led by Goldman Sachs.

Fast forward to today, when CNBC ran a story  summarizing an on-air interview it did with Jeremy, wherein he stated, in essence, that all global currencies will become cryptocurrencies. (Emphasis mine.) You read that right! He said every currency in the world, as the article stated, “from the U.S. dollar to the Chinese yuan,” will have its own cryptocurrency version.

“Our view is that all fiat currency will be crypto,” he told CNBC in the interview on Monday, June 18. “It seems inevitable at this point.”

The article describes Circle thusly:

Allaire’s start-up offers a blockchain-powered app that lets people send money to each other for free.  Blockchain is the public ledger of activity that underpins cryptocurrencies like bitcoin.

Circle also has a product that lets users invest in cryptocurrencies like bitcoin and ethereum, and another that facilitates over-the-counter cryptocurrency trading for institutional investors.

Circle is now valued at $3 billion and is backed by U.S. investment bank Goldman Sachs and Chinese internet giant Baidu. The CNBC piece also noted that Circle recently said it wants to introduce a new cryptocurrency pegged to the U.S. dollar, called “USD Coin.”

The idea is to speed up transactions made with dollars by using blockchain technology — which maintains a continuously growing digital record of transactions — and reducing the volatility seen in most cryptocurrencies.

It’s not the first so-called “stablecoin” on the market — other cryptocurrencies backed by fiat have been introduced. The most notable stablecoin is tether, a controversial virtual currency which critics have claimed was used to prop up bitcoin prices last year.

Allaire said that Circle’s U.S. dollar-backed crypto would benefit from coming under stricter regulations. The token is being built within an open-source platform called CENTRE, which Circle hopes will be joined by financial institutions and other firms.

Allaire said that the aim of the USD Coin was to bring mainstream financial processes into the world of cryptocurrencies and blockchain technology.

“Our focus with fiat stablecoins is we really think of it as a core building block for a crypto-native global digital economy,” the article quoted Allaire as saying.

“Our interest is in how do we take all of the tasks involved in the financial industry and move those onto a crypto-native infrastructure.”

The CNBC article also added that Circle is looking to add crypto tokens for the Euro and the British Pound.

Wow, what a story! A long way from his start here in the Twin Cities, but this Minnesota-born entrepreneur isn’t just out to change the world of banking — he’s out to change the very nature of money itself.

Go, Jeremy!

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P.S.  As long as we’re taking a bit of a walk back in history, I’ll link to three other posts I wrote about Jeremy on this blog some years ago, including one lengthy piece entitled “Minnesota Boy Makes Good (Very Good)” — based on an interview of Jeremy at the very seminal PC Forum in 2006. It was the last of an amazing run of those conferences, one that stands out in my mind as the best, most star-studded Internet conference I ever attended. And I attended and reported on plenty!

 

 

 

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