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R&D Roundup: ‘Twisted light’ lasers, prosthetic vision advances and robot-trained dogs

I see far more research articles than I could possibly write up. This column collects the most interesting of those papers and advances, along with notes on why they may prove important in the world of tech and startups.

In this edition: a new type of laser emitter that uses metamaterials, robot-trained dogs, a breakthrough in neurological research that may advance prosthetic vision and other cutting-edge technology.

Twisted laser-starters

We think of lasers as going “straight” because that’s simpler than understanding their nature as groups of like-minded photons. But there are more exotic qualities for lasers beyond wavelengths and intensity, ones scientists have been trying to exploit for years. One such quality is… well, there are a couple names for it: Chirality, vorticality, spirality and so on — the quality of a beam having a corkscrew motion to it. Applying this quality effectively could improve optical data throughput speeds by an order of magnitude.

The trouble with such “twisted light” is that it’s very difficult to control and detect. Researchers have been making progress on this for a couple of years, but the last couple weeks brought some new advances.

First, from the University of the Witwatersrand, is a laser emitter that can produce twisted light of record purity and angular momentum — a measure of just how twisted it is. It’s also compact and uses metamaterials — always a plus.

The second is a pair of matched (and very multi-institutional) experiments that yielded both a transmitter that can send vortex lasers and, crucially, a receiver that can detect and classify them. It’s remarkably hard to determine the orbital angular momentum of an incoming photon, and hardware to do so is clumsy. The new detector is chip-scale and together they can use five pre-set vortex modes, potentially increasing the width of a laser-based data channel by a corresponding factor. Vorticality is definitely on the roadmap for next-generation network infrastructure, so you can expect startups in this space soon as universities spin out these projects.

Tracing letters on the brain-palm

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Health APIs usher in the patient revolution we have been waiting for

Rish Joshi
Contributor

Rish is an entrepreneur and investor. Previously, he was a VC at Gradient Ventures (Google’s AI fund), co-founded a fintech startup building an analytics platform for SEC filings and worked on deep-learning research as a graduate student in computer science at MIT.

If you’ve ever been stuck using a health provider’s clunky online patient portal or had to make multiple calls to transfer medical records, you know how difficult it is to access your health data.

In an era when control over personal data is more important than ever before, the healthcare industry has notably lagged behind — but that’s about to change. This past month, the U.S. Department of Health and Human Services (HHS) published two final rules around patient data access and interoperability that will require providers and payers to create APIs that can be used by third-party applications to let patients access their health data.

This means you will soon have consumer apps that will plug into your clinic’s health records and make them viewable to you on your smartphone.

Critics of the new rulings have voiced privacy concerns over patient health data leaving internal electronic health record (EHR) systems and being surfaced to the front lines of smartphone apps. Vendors such as Epic and many health providers have publicly opposed the HHS rulings, while others, such as Cerner, have been supportive.

While that debate has been heated, the new HHS rulings represent a final decision that follows initial rules proposed a year ago. It’s a multi-year win for advocates of greater data access and control by patients.

The scope of what this could lead to — more control over your health records, and apps on top of it — is immense. Apple has been making progress with its Health Records app for some time now, and other technology companies, including Microsoft and Amazon, have undertaken healthcare initiatives with both new apps and cloud services.

It’s not just big tech that is getting in on the action: startups are emerging as well, such as Commure and Particle Health, which help developers work with patient health data. The unlocking of patient health data could be as influential as the unlocking of banking data by Plaid, which powered the growth of multiple fintech startups, including Robinhood, Venmo and Betterment.

What’s clear is that the HHS rulings are here to stay. In fact, many of the provisions require providers and payers to provide partial data access within the next 6-12 months. With this new market opening up, though, it’s time for more health entrepreneurs to take a deeper look at what patient data may offer in terms of clinical and consumer innovation.

The incredible complexity of today’s patient data systems

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NWU researchers develop a throat-worn wearable that could offer early warnings for COVID-19 patients

The ongoing COVID-19 pandemic is resulting in big shifts across industries, but the development of more long-term solutions that address a future in which what we need to do is mitigate the impact of the new coronavirus seems like a worthwhile place to invest time and effort. Projects like a new one from Northwestern University researchers working with the Shirley Ryan AbilityLab in Chicago that resulted in a wearable to potentially provide early warnings to COVID-19 patients are a prime example of that kind of work.

The wearable is designed to be worn on the throat, and it’s already in use by around 25 individuals, who are providing early data about its effectiveness via at-home and in-clinic monitoring. The hardware involved monitors coughs and respiratory activity, and then feeds that into a set of algorithms developed by the research team that can identify what might be early symptoms of COVID-19, and potential signs that the infection is progressing in a dangerous way that could require more advanced care.

The gadget is designed to be worn around the clock, and provides a continuous data stream. This has the advantage of providing insight as it becomes available, instantly, instead of relying on regular check-ins, or waiting for when symptoms are clearly bad enough that someone needs additional help, at which point it’s usually past the stage of early intervention. The wearable essentially looks like a thin bandage the size of a postage stamp, and it can monitor not only cough sounds and frequency, but also chest movements, heart rate, body temperature and respiratory rate.

It’s tuned specifically to what health experts have generally tagged as the most common early symptoms of COVID-19, which include fever, coughing and problem breathing. The “suprasternal notch,” which is the technical name for the site on the throat where the wearable rests, is “where airflow occurs near the surface of the skin” through the respiratory pathways of the body, according to Northwestern researcher John A. Rogers who led the device’s development team.

This hardware can potentially be useful in a number of ways: First, it’s a valuable tool for front-line healthcare workers, offering them what will hopefully be an early warning sign of any oncoming illness, so they can avoid infecting their colleagues and get the treatment they need as efficiently as possible. Second, it could be used by those already diagnosed with COVID-19, to potentially provide valuable insight into the course of the infection, and when it might be getting worse. Third, it could eventually also be used to tell scientists working on therapies what is working, how and how well, with live information from test subjects both in-clinic and at home.

The device is also relatively easy to produce, with the team saying they can do so at a rate of around hundreds per week, without even needing to lean very heavily on outside suppliers. That’s a considerable advantage for any hardware that might need to be leveraged in volume to address the crisis. Plus, people can wear it almost unnoticed, and it’s very easy to use both for clinicians and patients.

There are other projects in the works to see how devices that monitor biometrics, including the Oura ring, and the Kinsa thermometer, can help contain the epidemic. The researchers behind this wearable have spun up an engineering company called Sonica to manage their device’s development, and will now be working with various agencies (including through funding by BARDA) to deploy it in more places, and see about potentially productizing the wearable for wide-scale use.

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A full-time VC & part-time ER doctor shares his thoughts on COVID-19

An emergency room physician for the past 12 years, Dr. Robert Mittendorff joined Norwest Venture Partners eight years ago as a healthcare investor; the firm invests in a number of healthcare startups, including Talkspace, which raised a $50 million Series D last year, and TigerConnect.

As the COVID-19 pandemic spreads, Mittendorff is spending his weekdays with portfolio companies and weekends working with Kaiser Permanente in San Francisco. While he notes that his medical colleagues are “bearing the brunt” of the pandemic by working full time, we wanted to hear from someone who has a foot in both the investing and the healthcare world right now.

In this interview, he discusses what he’s learned from both roles, how it has influenced his healthcare investments, and offers his predictions regarding which companies will fare the best in the future.

This interview has been edited for length and clarity.

TechCrunch: How did you get to where you are today?

Dr. Robert Mittendorff: So, my journey to being a venture capitalist at Norwest and investing in healthcare companies as well as an emergency physician was really a parallel set of paths that overlapped and that cross every once in a while and now usually on a daily basis.

I started off life as a biomedical engineer really focused on wanting to be on the side of innovation and on the development of technologies to help human health. I knew early on that I wanted to be on the business side [of that], but it was important for me to understand and really be deeply in touch with what it was like to be a provider.

The journey started out going to engineering school, medical school, and then business school in the middle of medical school. I trained at Stanford, which really exposed me to county hospitals, which are probably going to be the more challenging situations as the weeks go on here, and then to Kaiser Permanente. And then, of course, Stanford, I was exposed to San Francisco General and then the Santa Clara Valley Hospital. I always practice part-time following up so it’s been 12 years as an attending, practicing part-time as an emergency physician.

In the venture space I saw an opportunity to really help select entrepreneurs and markets to grow them to a higher impact state.

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YC startup Felix wants to replace antibiotics with programmable viruses

Right now the world is at war. But this is no ordinary war. It’s a fight with an organism so small we can only detect it through use of a microscope — and if we don’t stop it, it could kill millions of us in the next several decades. No, I’m not talking about COVID-19, though that organism is the one on everyone’s mind right now. I’m talking about antibiotic-resistant bacteria.

You see, more than 700,000 people died globally from bacterial infections last year — 35,000 of them in the U.S. If we do nothing, that number could grow to 10 million annually by 2050, according to a United Nations report.

The problem? Antibiotic overuse at the doctor’s office or in livestock and farming practices. We used a lot of drugs over time to kill off all the bad bacteria — but it only killed off most, not all, of the bad bacteria. And, as the famous line from Jeff Goldblum in Jurassic Park goes, “life finds a way.”

Enter Felix, a biotech startup in the latest Y Combinator batch that thinks it has a novel approach to keeping bacterial infections at bay – viruses.

Phage killing bacteria in a petri dish

It seems weird in a time of widespread concern over the corona virus to be looking at any virus in a good light but as co-founder Robert McBride explains it, Felix’s key technology allows him to target his virus to specific sites on bacteria. This not only kills off the bad bacteria but can also halt its ability to evolve and once more become resistant.

But the idea to use a virus to kill off bacteria is not necessarily new. Bacteriophages, or viruses that can “infect” bacteria, were first discovered by an English researcher in 1915 and commercialized phage therapy began in the U.S. in the 1940’s through Eli Lilly and Company. Right about then antibiotics came along and Western scientists just never seemed to explore the therapy further.

However, with too few new solutions being offered and the standard drug model not working effectively to combat the situation, McBride believes his company can put phage therapy back at the forefront.

Already Felix has tested its solution on an initial group of 10 people to demonstrate its approach.

Felix researcher helping cystic fibrosis patient Ella Balasa through phage therapy

“We can develop therapies in less time and for less money than traditional antibiotics because we are targeting orphan indications and we already know our therapy can work in humans,” McBride told TechCrunch . “We argue that our approach, which re-sensitizes bacteria to traditional antibiotics could be a first line therapy.”

Felix plans to deploy its treatment in those suffering from cystic fibrosis first as there is no cure for this disease, which tends to require a near constant stream of antibiotics to combat lung infections.

The next step will be to conduct a small clinical trial involving 30 people, then, as the scientific research and development model tends to go, a larger human trial before seeking FDA approval. But McBride hopes his viral solution will prove itself out in time to help the coming onslaught of antibiotic resistance.

“We know the antibiotic resistant challenge is large now and is only going to get worse,” McBride said. “We have an elegant technological solution to this challenge and we know our treatment can work. We want to contribute to a future in which these infections do not kill more than 10 million people a year, a future we can get excited about.”

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Paige raises $45M more to map the pathology of cancer using AI

One of the more notable startups using artificial intelligence to understand and fight cancer has raised $45 million more in funding to continue building out its operations and inch closer to commercialising its work.

Paige — which applies AI-based methods such as machine learning to better map the pathology of cancer, an essential component of understanding the origins and progress of a disease with seemingly infinite mutations (its name is an acronym of Pathology AI Guidance Engine) — says it will be use the funding to inch closer to FDA approvals for products it is developing in areas such as biomarkers and prognostic capabilities.

It also plans to use the funding to continue developing better ways of diagnosing and ultimately fighting the disease, as well as exploring further commercial opportunities for its work, specifically within the bio-pharmaceutical industry.

This round is being led by Healthcare Venture Partners, with previous investor Breyer Capital, Kenan Turnacioglu and other funds participating. The company is not disclosing its valuation, but PitchBook noted that a first close of this round (when it raised $33 million) put the valuation at $208 million. That would value Paige now at about $220 million with the $45 million close, more than three times its valuation in its previous round.

Paige first emerged from stealth back in 2018 — with a bang.

Paige.AI — as it was known at the time — was hatched inside the Memorial Sloan Kettering Cancer Center, one of the world’s foremost institutions both for working on cancer therapies and treating cancer patients, and along with a $25 million investment led by Jim Breyer, Paige had secured exclusive access to MSK’s 25 million pathology slides as well as its intellectual property related to the AI-based computational pathology that underpinned its work. These slides make up one of the biggest repositories of its kind in the world, and as all solutions and services built on machine learning are only as good as the data that’s fed into them, they were critical to the startup’s beginnings.

The startup also launched with some serious talent behind it.

Much of the computational pathology being used by Paige had been developed by Dr Thomas Fuchs, who is known as the “father of computational pathology” and is the director of Computational Pathology in The Warren Alpert Center for Digital and Computational Pathology at Memorial Sloan Kettering, as well as a professor of machine learning at the Weill Cornell Graduate School of Medical Sciences.

Fuchs co-founded Paige with Dr David Klimstra, chairman of the department of pathology at MSK, and Fuchs had originally started out as the CEO of Paige, but was replaced earlier this year by Leo Grady, who joined from another bio-startup, Heartflow (another company backed by Healthcare Venture Partners). Fuchs is still supporting the company, but no longer in an executive role.

In the nearly two years since it launched, there have been some milestones reached. The company, which has around 30 employees today, has been the first to get an FDA breakthrough designation (which helps expedite the long process of drug approvals in urgent areas where there are few or no other options for patients) for using AI in oncology pathology. It’s also the first to get a CE mark in the same category, which opens the door to working in Europe, too. Paige has so far ingested 1.2 million images into its slide database and is using them — in algorithms that also take in genomic data, drug response data and outcome data — to work on developing diagnostic solutions.

But as with all new medical products, progress is not measured in quarters as it might be with a more typical tech startup. Moving fast and breaking things is something to be avoided. So even with all of the above advances, there has yet to be any commercial products launched, nor is Grady giving any specific time frames for when they will. And when the company came out of stealth in 2018, it said it would be focusing on breast, prostate and other major cancers, although today it’s not as quick to specify what its targets will be when it does launch commercial products.

Similarly, it’s also expanding its remit from primarily clinical environments to pharmaceutical ones.

“The clinical side is still our focus, but this is an expansion and realisation that this has a broader impact, and that includes pharmaceutical customers,” Grady said. 

And the dropping of the .AI in its name was also intentional, in part a reaction it seems to how much AI gets thrown around today.

“There is a fundamental misconception, which is thinking of AI as a product and not a technology,” said Grady. “It’s a technology set that can allow you to do many things that could not have been done in the past, but you need to apply it in a meaningful way. Developing a good AI and putting that on the market will not cut it in terms of clinical adoption.”

The funding round, Grady said, saw a lot of interest from strategic investors, although the company intentionally has stayed away from these.

“We were approached by all of the scanner vendors and some of the biopharmaceutical companies,” he said. “But we made the decision to not take a strategic investment with this round because we wanted to be neutral with hardware vendors and not be too tied with any one.”

He also pointed to the challenges of talking to investors when you are working in a cutting-edge area (a challenge that has foxed many an investor also into backing the wrong horses, too, such as Theranos).

“We’re at the intersection of three areas: tech, medical devices and clinical medicine, and life sciences and biotech,” he said. “Many investors sit squarely in one and don’t feel comfortable in others. That makes the conversations challenging and short. But there has been an increasing blend between those three sectors.”

That’s where Healthcare Venture Partners fits into the mix. “Paige exemplifies the benefits of digital pathology and represents the bright future of AI-driven medical diagnosis,” said Jeff Lightcap of Healthcare Venture Partners, in a statement. “As hospitals embark on digital transformations, they will face challenges associated with these transitions. We believe Paige addresses many of these issues by enhancing the ability of clinical teams and pathologists to collaborate. We’re confident in Paige’s future and believe they will continue to develop cutting-edge technologies that enable pathology departments to transform their practices, which have changed little in the last century.”

“We applaud Paige’s commitment to building clinical AI products that will improve the diagnostic process and patient care,” added Jim Breyer of Breyer Capital, in a statement. “This is a critical time for Pathology, as pathologists are carrying a heavier workload than ever before. Paige understands their needs and the team has built cutting-edge technologies to address them. Paige represents the future of computational pathology and we look forward to their continued growth and success.”

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Where top VCs are investing in digital health

The world of healthcare has notoriously been described as “broken” — plagued with high-friction workflows, sky-high costs and convoluted business models.

Over the past several years, a long list of innovative startups and salivating venture investors have pinned their focus on repairing the healthcare industry, but its digital transformation still appears to be in the very early innings. After a record-setting 2018, however, digital health investing continued to reach meteoric heights in 2019.

Mammoth pools of capital have flooded into various sub-verticals and business models, backing collections of new B2B and B2C companies focused on optimizing healthcare workflows, improving healthcare access and offering lower-cost distribution models. Over the past two years, digital health startups have raised well over $10 billion in funding across nearly 1,000 deals, according to data from Pitchbook and Crunchbase.

As we close out another strong year for innovation and venture investing in the sector, we asked nine leading VCs who work at firms spanning early to growth stages to share what’s exciting them most and where they see opportunity in the sector:

Participants discuss trends in digital therapeutics, telehealth, mental health and the latest in biotech and medical devices, while also diving into startups improving medical practitioner efficiency, evaluating the evolving regulatory environment and debating valuations and offering a ‘temp check’ on the market for digital health startups leveraging ML.

Annie Case, Kleiner Perkins

Although Kleiner Perkins has a long history of investing in iconic health companies, we believe it is still the early innings of digital health as a category today.

When I evaluate new opportunities in the space, I often start by thinking through how the company will move the needle on cost, quality, and access to care — the “iron triangle” of health care systems. Conventional wisdom has been that it’s impossible to improve all three dimensions simultaneously, but we are seeing companies leverage technology to shift this paradigm in meaningful ways.

It’s no longer just a promise. For example, Viz.ai is using artificial intelligence to detect and alert stroke teams to suspected large vessel occlusion strokes, enabling patients to get treatment faster. Their workflows improve access to life-saving care, deliver higher quality through reduced time to treatment (every minute counts as ‘time is brain’ in stroke care), and dramatically reduce the costs associated with long-term disability.

We are also seeing companies provide this type of tech-enabled care outside of the hospital setting. Modern Health is a mental health benefits platform that employers are making available to their employees. The platform triages individual employees to the right level of care, providing clinical care to those with diagnosable depression or anxiety, and making self-guided or preventative care available to everyone else. Their solution improves quality and access by offering mental health services to every employee and reduces the cost associated with untreated mental illness, lost productivity, or employee churn.

Heading into 2020, we’re eager to back digital health companies in new areas that leverage technology to impact cost, quality, and access. A few spaces that I’m excited about are behavioral health (mental health, substance abuse, addiction, etc), care navigation, digital therapeutics, and new models integrating telehealth, remote care and AI to better leverage medical professionals’ time.

Zavain Dar and Adam Goulburn, Lux Capital

Below are some thoughts and coming predictions on health tech broadly:

  1. Digital therapeutics continue to pick up steam — on the back of Pear and Akili, more companies push to FDA and enter the market. In addition, broader consumer platforms like Calm and Headspace look to broaden their offerings by investigating clinical approvals.
  2. At least one major pharma looks to expand its consumer surface area by acquiring one of the new digital, consumer-facing generics platform (ex Hims, Ro, NuRx).
  3. Venture funding for biotech continues to boom with at least three Series A’s of $100M or more in size.
  4. Drug discovery for neurodegeneration sees a renaissance. High-profile failings of Biogen and the beta-amyloid hypothesis sees a shift of innovation to early-stage biotech and venture creation.
  5. Big pharma has its DeepMind moment acquiring at least one machine-learning (AI) enabled drug discovery company.
  6. Clinical trial tech investments heat up; new companies and technologies emerge to make trials patients first and systems get smarter at finding the right patients at their point of care; large incumbents like IQVIA, LabCorp and PPD get acquisitive.
  7. At least three traditional Sand Hill Road tech venture firms open life science practices or raise dedicated funds.
  8. Machine learning targets chemistry driven by large advancements in transformer (NLP) models; has the time for computational chemistry finally come?
  9. HCIT sees a renaissance driven by increased CIO responsibility towards data interoperability. Companies either working on federated ML to allow systems to speak to each other or lightweight edge applications enabling rapid clinical deployment will see quick uptake and traction, until now impossible in HC.

Kristin Baker Spohn, CRV

In the last 10 years, digital health has exploded. Over $16B has been invested in the sector by VCs and we’ve seen IPOs from Livongo, Progyny and Health Catalyst, just in the last year alone. That said, there’s still a lot that mystifies people about the sector — there are spots that are overheated and models that will struggle to deliver venture scale outcomes. I’ve seen digital health evolve first hand as both an operator and investor, and I’m more excited than ever about the future of the space.

A few areas and trends that I’ve been following recently include:

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WeFarm rakes in $13M to grow its marketplace and network for independent farmers

Huge networks like Facebook and LinkedIn have a huge gravitational force in the world of social media — the size of their audiences make them important platforms for advertising and those who want information (for better or worse) to reach as many people as possible. But alongside their growth, we’re seeing a lasting role for platforms and networks focused on more narrow special interests, and today one of them — focused on farmers, of all communities — is picking up a round of funding to propel its growth.

WeFarm, a marketplace and networking site for small-holder farmers (that is, farms not controlled by large agribusinesses), has raised $13 million in a Series A round of funding, with plans to use the money to continue adding more users — farmers — and more services geared to their needs.

The round, which brings the total raised by the company to a modest $20 million, is being led by True Ventures, with AgFunder, June Fund; previous investors LocalGlobe, ADV and Norrsken Foundation; and others also participating.

WeFarm today has around 1.9 million registered users, and its early moves into providing a marketplace — helping to put farmers in touch with local suppliers of goods and gear such as seed and fertilizers — generated $1 million in sales in its first eight months of operations, a sign that there is business to be had here. The startup points out that this growth has been, in fact, “faster… than both Amazon and eBay in their early stages.”

WeFarm is based out of London, but while the startup does have users out of the U.K. and the rest of Europe, Kenny Ewan, the company’s founder and CEO, said in an interview that it is seeing much more robust activity and growth out of developing economies, where small-scale agriculture reigns supreme, but those working the farms have been massively underserved when it comes to new, digital services.

“We are building an ecosystem for global small-scale agriculture, on behalf of farmers,” Ewan said, noting that there are roughly 500 million small-scale farms globally, with some 1 billion people working those holdings, which typically extend 1.5-2 hectares and often are focused around staple commercial crops like rice, coffee, cattle or vegetables. “This is probably the biggest industry on Earth, accounting for some 75-80% of the global supply chain, and yet no one has built anything for them. This is significant on many levels.”

The service that WeFarm provides, in turn, is two-fold. The network, which is free to join, first of all serves as a sounding board, where farmers — who might live in a community with other farmers, but might also be quite solitary — can ask each other questions or get advice on agricultural or small-holding matters. Think less Facebook and more Stack Exchange here.

That provided a natural progression to WeFarm’s second utility track: a marketplace. Initially Ewan said that it’s been working with — and importantly, vetting — local suppliers to help them connect with farmers and the wider ecosystem for goods and services that they might need.

Longer term, the aim will be to provide a place where small-holding farmers might be able to exchange goods with each other, or sell on what they are producing.

In addition to providing access to goods for sale, WeFarm is helping to manage the e-commerce process behind it. For example, in regions like Africa, mobile wallets have become de facto bank accounts and proxies for payment cards, so one of the key ways that people can pay for items is via SMS.

“For 90% of our users, we are the only digital service they use, so we have to make sure we can fulfill their trust,” Ewan said. “This is a network of trust for the biggest industry on earth and we have to make sure it works well.”

For True and other investors, this is a long-term play, where financial returns might not be as obvious as moral ones.

“We are enormously inspired by how Kenny and the Wefarm team have empowered the world’s farmers, and we see great potential for their future,” said Jon Callaghan, co-founder of True Ventures, in a statement. “The company is not only impact-driven, but the impressive growth of the Wefarm Marketplace demonstrates exciting commercial opportunities that will connect those farmers to more of what they need to the benefit of all, across the food supply chain. This is a big, global business.”

Still, given the bigger size of the long tail, the company that can consolidate and manage that community potentially has a very valuable business on its hands, too.

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In the Accelerator over the Sea

In our oceans the scale of disasters is measured in millions, billions, and trillions, while solutions amount to single digits: individuals or institutions working to impact a chosen issue with approaches often both brilliant and quixotic. Putting such individuals in close contact with both whales and billionaires is the strange alchemy being attempted by the Sustainable Ocean Alliance’s Accelerator at Sea.

I and a few other reporters were invited to observe said program, a five-day excursion in Alaska that put recent college graduates, aspiring entrepreneurs, legends of the sea, and soft-spoken financial titans on the same footing: spotting whales from Zodiacs in the morning, learning from one another in the afternoon, and drinking whiskey good and bad under the Northern lights in the pre-dawn dark.

The boat — no, not that big one, or that other big one… yes, that one.

In that time I got to know the dozen or so companies in the accelerator, the second batch from the SOA but the first to experience this oddly effective enterprise. And I also gathered from conversations among the group the many challenges facing conservation-focused startups.

(By way of disclosure, I should say that I was among four press offered a spot on the chartered boat; Those invited, from penniless students to deep-pocketed investors, could join provided they got themselves to Juneau for embarkation.)

The picture painted by just about everyone was one of impending doom from a multiplicity of interlinked trends, and as many different approaches to averting or mitigating that doom as people discussing it.

What’s the problem?

In Silicon Valley one grows so used to seeing enormous sums of money expended on things barely categorizable as irritations, let alone serious problems, that it is a bit bewildering to be presented with the opposite: existential problems being addressed on shoestring budgets by founders actually passionate about their domain.

Throughout the trip, the discussions had at almost every occasion, be it looking for bear prints in a tidal flat or visiting a local salmon hatchery, were about the imminent collapse of natural ecosystems and the far-reaching consequences thereof.

Overfishing, rising water temperatures, deforestation, pollution, strip mining, microplastics — everywhere we looked is a man-made threat that has been allowed to go too far. Not a single industry or species is unaffected.

It’s enough to make you want to throw your hands up and go home, which is in fact what some have advised. But the people on this boat are not them. They were selected for their dedication to conservation and ingenuity in pursuing solutions.

Of course, there’s no “solution” to the million of tons of plastic and oil in the oceans poisoning fish and creating enormous dead zones. There’s no “solution” to climate change. No one expects or promises a miracle cure for nature’s centuries of abuse at human hands.

But there are mitigations, choices we can make and technologies we can opt for where a small change can propagate meaningfully and, if not undo the damage we’ve done, reduce it going forward and make people aware of the difference they can make.

Small fish in a big, scary pond

The trip came right at the beginning of the accelerator, a choice that meant they were only getting started in the program and in fact had never met one another. It also meant in many cases their pitches and business models were less than polished. This is for the most part an early-stage program, and early in the program at that.

That said, the companies may be young but the ideas and technologies are sound. I expect to follow up with many as they perfect their hardware, raise money, and complete pilot projects, but I think it’s important to highlight each one of them, if only briefly. The accelerator’s demo day is actually today, and I wish I could attend to see how the companies and founders have evolved.

Some accelerators are so big and so general-purpose that it was refreshing to have a manageable number of companies all clustered around interlinked issues and united by a common concern. If young entrepreneurs trying to change the world isn’t TechCrunch business, I don’t know what is.

The problems may be multifarious, but I managed to group the startups under two general umbrellas: waste reduction and aquatic intelligence.

But before that I want to mention one that doesn’t fit into either category and for other reasons deserves a shout out.

coral vita

Coral Vita grows corals at many times their normal rate and implants them in dying reefs.

Coral Vita is working on a special method of fast-tracking coral growth and simultaneously selecting for organisms resistant to bleaching and other threats. The founder, Gator Halpern, impressed the importance of the coral systems on us over the trip, as did filmmaker Jeff Orlowski, who directed the harrowing documentaries Chasing Ice and Chasing Coral. (He gave a workshop on storytelling — important when you’re pitching a film or a startup.)

Gator is using a special method to grow corals at 50 times normal rates and hopefully resuscitate reefs around the world, which is awesome, but I wanted to put Coral Vita first because of a horribly apropos coincidence: Hurricane Dorian, the latest in a historically long unbroken line of storms, struck his home and lab in the Bahamas while we were at sea.

It was literally battering the islands while he was supposed to pitch investors, and he used his time instead to ask us to help the victims of the storm. That’s heart. And it serves as a reminder that these are not armchair solutions to invented problems.

If you can spare a buck, you can support Coral Vita and victims of Dorian in the Bahamas here.

Waste reduction

The other companies were addressing problems equally as destructive, if not quite so immediately so.

Humans produce a lot of waste, and a lot of that waste ends up in the ocean, either as whole plastic bags scooping up fish, microplastics poisoning them, or heavier trash cluttering the sea floor. These startups focused on reducing humanity’s deleterious effects on ocean ecosystems.

Cruz Foam is looking to replace one of my least favorite substances, Styrofoam, which I see broken up and mixed in with beach soil and sand all the time. The company has created a process that uses an incredibly abundant and strong material called chitin to create a lightweight, biodegradable packing foam. Chitin is what a lot of invertebrates use to form their shells and exoskeletons, and there’s tons of it out there — but the company has been careful to find ethical sourcing for the volume it need.

Cruz Foam’s chitin-based product, left, and Biocellection’s plastic reduction process.

Biocellection is coming from the other direction, having created a process to break down polyethylenes (i.e. plastics) into smaller molecules that are useful in existing chemical processes. It’s actually upcycling waste plastic rather than repurposing it as a lower grade product.

Loliware was in SOA’s first batch, and creates single-use straws out of kelp material — a timely endeavor, as evidenced by the $6M round A they just pulled in, and backlog of millions of units ordered. Their challenge now is not finding a market but supplying it.

Dispatch Goods and Muuse are taking complementary approaches to reducing single-use items for take-out. Dispatch follows a model in use elsewhere in the world where durable containers are used rather than disposable ones for delivery items, then picked up, washed, and reused. Kind of obvious when you think about it, which is it’s common in other places.

Muuse (formerly Revolv) takes a more tech-centric approach, partnering with coffee shops to issue reusable cups rather than disposable ones. You can keep the cup if you want, or drop it off at a smart collection point and get a refund; RFID tags keep track of the items. Founder Forrest Carroll talked about early successes with this model on semi-closed environments like airports and college campuses.

repurpose screen

Repurpose is aiming to create a way to go “plastic neutral” the way people try to go “carbon neutral.” Companies and individuals can sponsor individual landfills where their plastics go, subsidizing the direct removal and handling costs of a given quantity of trash.

Finless Foods hopes to indirectly reduce the huge amount of cost and waste created by fishing (“sustainable” really isn’t) by creating lab-grown tuna tissue that’s indistinguishable from the real thing. It’s a work in progress, but they’ve got a ton of money so you can probably count on it.

Intelligence and automation

The technology used in the maritime and fishing industries tends toward the “sturdy legacy” type rather than “cutting edge.” That’s changing as costs drop and the benefits of things like autonomous vehicles and IoT become evident.

Ellipsis represents perhaps the most advanced, yet direct, application of the latest tech. The company uses camera-equipped drones using computer vision to inspect rivers and bodies of water for plastics, helping cleanup and response crews characterize and prioritize them. This kind of low-level data is largely missing from cleanup efforts, which gave rise to the name, which refers to both the peripatetic founder Ellie and the symbol indicating missing or omitted information

ellipsis gif

Ellipsis uses computer vision to find plastic waste in water systems.

For larger-scale inspection, autonomous boats like Saildrone are an increasingly valuable tool — but they cost hundreds of thousands of dollars and have their own limitations.

EcoDrone is a lower-cost, smaller, customizable autonomous sailboat that costs more like $2,500. Plenty of missions would prefer to deploy a fleet of smaller, cheaper boats than put all their hopes into one vessel.

seaproven

Sea Proven is going the other direction, with a much larger autonomous ship: 20 meters long with a full ton of payload space. That opens up entirely new mission profiles that use sophisticated, large-scale equipment and require long-term presence at sea. The company has two ships now embarking on a mission to track whales in the Mediterranean.

Nets and traps are notoriously dumb, producing a huge amount of “bycatch,” animals caught up in them that aren’t what the fishing vessel was aiming (or licensed) to collect. Smart Catch equips these huge nets with a camera that tracks and characterizes the fish that enter, allowing the owner to watch and monitor them remotely and respond if necessary.

smartcatch

Meanwhile “dumb” traps can still be smarter in other ways. Stationary traps in stormy seas are often lost, dragged along the sea bed to an unknown location, there to sit attracting hapless crab and fish until they fall apart centuries from now. Blue Ocean Gear makes GPS-equipped buoys that can be tracked easily, reducing the risk of losing expensive fishing kit and line, and preventing “ghost fishing.”

Connectivity at sea can be problematic, with satellite often the only real option. Sure, Starlink and others are on their way, but why wait? A system of interconnected floating hubs from ONet could serve as hotspots for ships carrying valuable and voluminous data that would otherwise need to be processed at sea or uploaded at great cost.

screen dashboard cable 1

And integrating all that data with other datasets like those provided by universities, ports, municipalities, NGOs… good luck getting it all in one place. But that’s the goal of SINAY, which is assembling a huge ocean-centric meta-database where users can cross-reference without having to sort or process it locally. Clouds come from oceans, right? So why shouldn’t the ocean be in the cloud?

Accelerator at Sea

The idea of commencing this accelerator program with a trip to southeast Alaska is a fanciful one, no doubt. But an influx of support for the accelerator’s parent organization, the Sustainable Ocean Alliance, made it possible. The SOA raised millions from the mysterious Pine and not-so-mysterious Benioffs, but it also made a deep impression on the founder of Lindblad Expeditions, Sven Lindblad, who offered not just to host the event but to attend and speak at it.

He joined several other experts and interesting people in doing so: Former head of Google X Tom Chi, Value Act’s Jeff Ubben, Gigi Brisson and her Ocean Elders, including Captain (ret.) Don Walsh, the first man to reach the bottom of the Challenger Depths in the Marianas Trench. He’s hilarious, by the way.

I met SOA founder Daniela Fernandez at a TechCrunch event a few years ago when all this was just one of many twinkles in her twinkly eyes, and it’s been rewarding to watch her grow a community around these issues, which have passionate supporters around the globe if you’re willing to look for them and validate their purpose. It’s not a surprise to me at all that she has collected such an impressive group.

The boat, departing from Juneau, made a number of stops at local places of interest, where we would meet locals in the fishing industry, whale researchers, and others, or hear about the local economy ecology from one of the boat’s designated naturalists. In between these expeditions we did team-building exercises, honed pitches, and heard talks from the people mentioned above on hiring practices, investment trends, history.

These people weren’t just plucked from from the void — they are all part of the extended community that the SOA and Fernandez have built over the last few years. The organization was built with the idea of putting young, motivated people together with older, more experienced ones, and that’s just what was happening.

gator jeff workshop

In a way it was what you might expect out of an accelerator program: Connecting startups with industry veterans and investors (of which there were several present) and getting them the advice and exposure they need. There was a pitch competition — the “Otter Sanctuary” (you had to be there).

But there was something very different about doing it this way — on a boat, I mean. In Alaska. With bears, whales, and the northern lights present at every turn.

“For the first time ever, we brought together a community of ocean entrepreneurs from all around the world and allowed them to become fully immersed in the environment that they have been working so hard to protect,” said Craig Dudenhoffer, who runs the accelerator program. “It was amazing to see the entrepreneurs establishing lifelong relationships with each other and with members of the SOA community. It might seem counter-intuitive for a technology entrepreneur, but sometimes you have to disconnect from technology in order to reconnect with your mission.”

In a normal startup accelerator, and in fact for the remainder of this one, aspiring entrepreneurs are living on their own somewhere, coming into a shared office space, attending office hours, meeting VCs in their offices or at demo days. That’s just fine, and indeed what many a startup needs — a peer group, a focal point in space and time, goals and advice.

On the boat, however, these things were present, but secondary to the experience of, say, standing next to someone under the aurora. I’m aware of how that sounds — “it was an experience, man!” — but there’s something fundamentally different about it.

In an office in the Bay Area, there is an established power structure and hierarchy. Schedules are adjusted around meetings, priorities are split, time and attention are devoted in formal 15-minute increments. On the boat there was no hierarchy, or rather the artificial one to which we would cleave in the city was flattened by the scale of what we were learning and experiencing.

You’d be in a zodiac or pressed against the railing with your binoculars, talking about whales and the threat of microplastics with whoever’s next to you in a normal fashion, only to find out they’re a billionaire who you’d never be able to meet directly with at all, let alone on equal terms.

Sitting at breakfast one day the guy next to me started talking about hydrogen-powered trucking — I figured I’d indulge this harmless idealist. In fact it was Jeff Ubben and Value Act was investing millions in an ecosystem they fully expect to take over the west coast. This sort of encounter was happening constantly as people engaged naturally, acting outside the established hierarchies and power structures.

Part of that was the gravity of the issues the startups were facing, and which we were reminded of repeatedly by the impending hurricane, the hatchery warning of salmon apocalypse, the visibly collapsing ecosystems, and perhaps most poignantly by the changes seen personally by Don and Sven, who were been on the seas professionally long before I was even born.

“It’s like salmon eggs”

On the last night of the trip, I shared a glass of wine with Sven to talk about why he was supporting this endeavor, which was undoubtedly expensive and certainly unusual.

“From a business perspective, I depend on the ocean — but there’s a personal connection as well. I’m constantly looking for ways to protect what we depend on,” he began. “We have a fund that generates a couple million dollars a year, and we find different people that we believe in — that have an idea, a passion, intelligence. You meet someone like Daniela, you want to go to bat for them.”

Kristin Hettermann ALASKA SOA 39

“When you’re 21 or whatever, you have all these idealistic thoughts about making a difference in the world. They need support in a variety of ways — advice, finance, mentorship, all these things are part of the puzzle,” he said. “What SOA has done is recognize people that have a good idea. Left to their own devices most of them would probably fail. But we can provide some support, and it’s like with salmon eggs – maybe instead of one in a million surviving, maybe two, or five survive, you know?”

“Tech is a valuable tool, but it has to serve to support an idea. It isn’t the idea. Eliminating plastics and bycatch, making data more useful, putting sonar sensors on robotic boats, all very interesting. We need solutions, actions, ideas, as fast as we can, to accelerate the change in behavior as fast as we can.”

His earnest replies soon became emotional, however, as his core concern for the ocean and planet in general took over.

“We’re fucked,” he said simply. “We are literally destroying the next generation’s future. I’ve been with colleagues and we’ve wept over glasses of wine over what we’re doing.”

“I have two personalities,” he explained. “And most of my friends, associates, scientists have these dual personalities, too. One is when they look in the mirror and talk to themselves — that tends to be more pessimistic. But the other is the external personality, where being pessimistic is not helpful.”

“Something like this really activates that optimism,” he said. “At the end of the day young people have to grab their future, because we sure haven’t done a great job of it. They have to get out there, they have to vote, they have to take control. Because if the system really starts to collapse… I don’t think anyone even begins to understand the magnitude of it. It’s unfathomable.”

The Accelerator at Sea program was a fascinating experience and I’m glad to have taken part. I feel sure it was valuable for the startups as well, and not just because of the $25,000 they were each spontaneously awarded from the investors on board, who in closing remarks emphasized how important it is that startups like these and the people behind them are supported by gatekeepers like venture firms and press.

The combination of good times in nature, stimulating experts and talks, and a group of highly motivated young entrepreneurs was a powerful mixture, and unfortunately one that is difficult to describe even in 3,000 words. But I’m glad it exists and I look forward to following the progress of these companies and the people behind them. You can keep up with the SOA at its website.

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Ginkgo Bioworks’ dev shop for genetic programming is now worth $4 billion

Ginkgo Bioworks is now worth $4 billion after a $290 million capital infusion that will give the company the cash to dramatically expand its developer shop for genetic programming.

The Boston-based company is one of a handful of U.S.-based early-stage companies that are on the forefront of developing the tools to modify genetic material for everyday applications.

“Cells are programmable similar to computers because they run on digital code in the form of DNA,” said Jason Kelly, CEO and co-founder of Ginkgo Bioworks, in a statement. “Ginkgo has the best compiler and debugger for writing genetic code and we use it to program cells for customers in a range of industries. Today’s fundraise will allow us to expand our technology and continue our drive to bring biology into every physical goods industry — materials, clothing, electronics, food, pharmaceuticals and more. They are all biotech industries but just don’t know it yet.”

Ginkgo makes money in two ways. The company sells its development services to anyone who comes in with an idea. Kelly said that it’d be like any agreement with an entrepreneur who hires a coding shop to develop an application.

For example, if an entrepreneur wanted to develop houseplants that smelled like roses or lilies, they could approach Ginkgo, pay a (not-insignificant) fee and Ginkgo would do the research into designing something like a lily-scented fern. (Kelly puts the sticker price on that kind of development somewhere in the neighborhood of $10 million, so a founder best believe their product can sell.)

“You don’t need to come in with deep biological know-how,” Kelly says. “The question is, is capital interested in the problem?”

The other way that Ginkgo is approaching the market is by taking equity stakes in businesses that rely on its technology.

Those take the form of joint ventures with companies like Bayer (the first joint venture partner for Ginkgo) and the launch of Joyn, a $100 million spin-out that was created in the summer of 2018.

The two companies are collaborating on the development of seeds that require less fertilizer for growth — something that could save the industry millions and decrease pollution associated with traditional chemical fertilizers.

Since that first spin-out, Ginkgo has created three other companies and joint ventures. There’s the $122 million deal to produce rare cannabinoids with the Canadian cannabis company, Cronos; a partnership with Roche that was born out of Ginkgo’s acquisition of Warp Drive Bio; and Motif Foodworks, which is working on manufacturing alternative proteins with a $120 million in financing.*

Alongside these large-scale initiatives, Ginkgo has signed partnerships with the West Coast powerhouse accelerator program from Y Combinator and a new Boston-based life sciences-focused group called Petri to conduct development work for startups from those programs in exchange for an equity stake.

“We’re not going to have all the good ideas,” says Kelly. “We want to tap the much larger pool of smart people and really have them building on our platform. Of all of the people we can give value to, we can give the most to startups. If we can offer them to do their biowork without all of the fixed costs of building a lab,” that’s valuable, he says.

Investors in the company include Y Combinator, DCVC, MassChallenge, Felicis Ventures, General Atlantic, Baillie Gifford, Bill Gates and Viking Global.

An earlier version of this article mentioned three company spinouts. The collaborations with Roche and Cronos are not independent companies. 

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