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Alphabet-backed primary care startup One Medical files to go public

One Medical, a San Francisco-based primary care startup with tech-infused, concierge services filed for an IPO with the Securities and Exchange Commission today.

Internal medicine doctor Tom Lee founded the startup, now valued at well-over $1 billion dollars, in 2007. Lee exited his company in 2017, leaving it in the hands of former UnitedHealth group executive Amir Rubin.

The startup currently operates 72 health clinics in nine major cities throughout the U.S., with three more markets expected to open in 2020 and has raised just over $500 in venture capital from it’s biggest investor, the Carlyle Group (which owns just over a quarter of shares), Alphabet’s GV, J.P. Morgan and others. Google also incorporates One Medical into its campuses and accounts for about 10% of the company revenue, according to the SEC filing. The filing also mentions the company, which is officially incorporated as 1Life Healthcare Inc. ONEM, now plans to raise about $100 million.

Presumably, this money will help the company improve upon its technology and expand to more markets. We’ve reached out to One Medical for more and so far have only been referred to its wire statement.

According to that statement, One Medical has applied for a listing as ticker symbol, ONEM under its common stock on the Nasdaq Global Select Market.

 

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Amazon launches Amazon Care, a virtual and in-person healthcare offering for employees

Amazon has gone live with Amazon Care, a new pilot healthcare service offering that is initially available to its employees in and around the Seattle area. The Amazon Care offering includes both virtual and in-person care, with telemedicine via app, chat and remote video, as well as follow-up visits and prescription drug delivery in person directly at an employee’s home or office.

First reported by CNBC, Amazon Care grew out of an initiative announced in 2018 with J.P. Morgan and Berkshire Hathaway to make a big change in how they all collectively handle their employee healthcare needs. The companies announced at the time that they were eager to put together a solution that was “free from profit-making incentives and constraints,” which are of course at the heart of private insurance companies that serve corporate clients currently.

Other large companies, like Apple, offer their own on-premise and remotely accessible healthcare services as part of their employee compensation and benefits packages, so Amazon is hardly unique in seeking to scratch this itch. The difference, however, is that Amazon Care is much more external-facing than those offered by its peers in Silicon Valley, with a brand identity and presentation that strongly suggests the company is thinking about more than its own workforce when it comes to a future potential addressable market for Care.

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The Amazon Care logo.

Care’s website also provides a look at the app that Amazon developed for the telemedicine component, which shows the flow for choosing between text chat and video, as well as a summary of care provided through the service, with invoices, diagnosis and treatment plans all available for patient review.

Amazon lists Care as an option for a “first stop,” with the ability to handle things like colds, infections, minor injuries, preventative consultations, lab work, vaccinations, contraceptives and STI testing and general questions. Basically, it sounds like they cover a lot of what you’d handle at your general practitioner, before being recommended on for any more specialist or advanced medical treatment or expertise.

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Rendered screenshots of the Amazon Care app for Amazon employees.

Current eligibility is limited to Amazon’s employees who are enrolled in the company’s health insurance plan and who are located in the pilot service geographical area. The service is currently available between 8 AM and 9 PM local time, Monday through Friday, and between 8 AM and 6 PM Saturday and Sunday.

Amazon acquired PillPack last year, an online pharmacy startup, for around $753 million, and that appears to be part of their core value proposition with Amazon Care, too, which features couriered prescribed medications and remotely communicated treatment plans.

Amazon may be limiting this pilot to employees at launch, but the highly publicized nature of their approach, and the amount of product development that clearly went into developing the initial app, user experience and brand all indicate that it has the broader U.S. market in mind as a potential expansion opportunity down the line. Recent reports also suggest that it’s going to make a play in consumer health with new wearable fitness tracking devices, which could very nicely complement insurance and healthcare services offered at the enterprise and individual level. Perhaps not coincidentally, Walgreens, CVS and McKesson stock were all trading down today.

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Colombian point-of-sale lender ADDI nabs $12.5 million from Andreessen Horowitz

Andreessen Horowitz <3 Latin American startups.

Latin America is the only region outside of the U.S. where the venture firm is routinely investing capital, and it just made another commitment, doubling down on its early-stage support for the point-of-sale lending startup ADDI.

ADDI picked up $12.5 million in new financing in April of this year as the company looks to expand its lending services online.

For an American audience, the closest corollary to what ADDI is up to is likely Affirm, the point-of-sale lender that’s raised a ton of cash and come in for some (valid) criticism for its basic business model.

Like Affirm, ADDI lets its borrowers apply for credit at the moment of purchase. The company likens its service to the layaway and credit plans that already exist in Colombia — but involve pretty onerous requirements to use. Company co-founder Santiago Suarez and Andreessen Horowitz general partner Angela Strange both commented on how, in some cases, Colombian shoppers have to have three people vouch for a borrower before a store will issue credit or agree to a layaway plan.

The difference between an ADDI loan — or any loan — and layaway is that an installment payment plan doesn’t charge interest (and even with the fees that installment plans do charge, they are often still cheaper than taking out a loan).

But financial products are coming for consumers in Latin America whether those buyers like it or not — and for the most part, it seems they do like it.

Historically, only the wealthiest clientele in Latin America received anything resembling the kinds of financial products that are more widely available in the United States, according to Strange. And the investment in ADDI is just part of her firm’s thesis in trying to make more services more broadly available in a region where a technological transformation is creating unprecedented opportunities for challengers.

That assessment is what drew Santiago Suarez back to Latin America only two years ago. A former executive at Lending Club who previously had worked as the head of New Product Development and Emerging Services at J.P. Morgan, Suarez saw the tremendous growth happening in Latin America and returned to Colombia to see if he could bring some much needed services to his home country.

Suarez partnered with his childhood friend, Elmer Ortega, who was working as the chief technology officer of the local hedge fund where he had previously been employed as a derivatives trader before learning how to code.

Together, the two men, who had known each other since they were five years old, set out to transform how credit was offered in retail shops. It’s an industry that Suarez had known well since his parents had owned stores.

“In the U.S. there are all of these gaps that fintech companies are filling,” says Suarez. “But the gaps in Latin America are bigger.”

Suarez and Ortega incorporated the company in September 2018, around the same time they raised $2.3 million from the regional investment firm, Monashees, Andreessen and Village Global . They then raised another $1.5 million in an internal round of financing before closing the most recent funding.

The company offers loans at annual percentage rates ranging from 19.99% to 28.90%. The company started with a digital solution for brick and mortar retailers because 90% of retail in Colombia still happens offline. 

Although it’s in its early days, the company has already originated 10,000 borrowers and typically loans out roughly $500 since it launched on February 22, according to Suarez. He declined to comment on the company’s default rate on loans.

Now with 40 employees on staff, the company is looking to bring its lending tool to more e-commerce and physical retailers, according to Suarez. And despite the threat of cyclical political turmoil, Suarez says there’s no better time to be investing in Colombia. 

“It’s the most stable country outside of Chile… Way more stable than Brazil, way more stable than Argentina and way more stable than Mexico,” Suarez says. “What we’re looking at is more than cyclical instability… those things go beyond that. Nubank was able to build a multibillion business in the worst political and economic crisis in Brazil’s history. I think Colombia is an incredibly attractive space with a deep talent pool.”

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Gender, race and social change in tech; Moira Weigel on the Internet of Women, Part Two

Tech ethics can mean a lot of different things, but surely one of the most critical, unavoidable, and yet somehow still controversial propositions in the emerging field of ethics in technology is that tech should promote gender equality. But does it? And to the extent it does not, what (and who) needs to change?

In this second of a two-part interview “On The Internet of Women,” Harvard fellow and Logic magazine founder and editor Moira Weigel and I discuss the future of capitalism and its relationship to sex and tech; the place of ambivalence in feminist ethics; and Moira’s personal experiences with #MeToo.

Greg E.: There’s a relationship between technology and feminism, and technology and sexism for that matter. Then there’s a relationship between all of those things and capitalism. One of the underlying themes in your essay “The Internet of Women,” that I thought made it such a kind of, I’d call it a seminal essay, but that would be a silly term to use in this case…

Moira W.: I’ll take it.

Greg E.: One of the reasons I thought your essay should be required reading basic reading in tech ethics is that you argue we need to examine the degree to which sexism is a part of capitalism.

Moira W.: Yes.

Greg E.: Talk about that.

Moira W.: This is a big topic! Where to begin?

Capitalism, the social and economic system that emerged in Europe around the sixteenth century and that we still live under, has a profound relationship to histories of sexism and racism. It’s really important to recognize that sexism and racism themselves are historical phenomena.

They don’t exist in the same way in all places. They take on different forms at different times. I find that very hopeful to recognize, because it means they can change.

It’s really important not to get too pulled into the view that men have always hated women there will always be this war of the sexes that, best case scenario, gets temporarily resolved in the depressing truce of conventional heterosexuality.  The conditions we live under are not the only possible conditions—they are not inevitable.

A fundamental Marxist insight is that capitalism necessarily involves exploitation. In order to grow, a company needs to pay people less for their work than that work is worth. Race and gender help make this process of exploitation seem natural.

Image via Getty Images / gremlin

Certain people are naturally inclined to do certain kinds of lower status and lower waged work, and why should anyone be paid much to do what comes naturally? And it just so happens that the kinds of work we value less are seen as more naturally “female.” This isn’t just about caring professions that have been coded female—nursing and teaching and so on, although it does include those.

In fact, the history of computer programming provides one of the best examples. In the early decades, when writing software was seen as rote work and lower status, it was mostly done by women. As Mar Hicks and other historians have shown, as the profession became more prestigious and more lucrative, women were very actively pushed out.

You even see this with specific coding languages. As more women learn, say, Javascript, it becomes seen as feminized—seen as less impressive or valuable than Python, a “softer” skill. This perception, that women have certain natural capacities that should be free or cheap, has a long history that overlaps with the history of capitalism.  At some level, it is a byproduct of the rise of wage labor.

To a medieval farmer it would have made no sense to say that when his wife had their children who worked their farm, gave birth to them in labor, killed the chickens and cooked them, or did work around the house, that that wasn’t “work,” [but when he] took the chickens to the market to sell them, that was. Right?

A long line of feminist thinkers has drawn attention to this in different ways. One slogan from the 70s was, ‘whose work produces the worker?’ Women, but neither companies nor the state, who profit from this process, expect to pay for it.

Why am I saying all this? My point is: race and gender have been very useful historically for getting capitalism things for free—and for justifying that process. Of course, they’re also very useful for dividing exploited people against one another. So that a white male worker hates his black coworker, or his leeching wife, rather than his boss.

Greg E.: I want to ask more about this topic and technology; you are a publisher of Logic magazine which is one of the most interesting publications about technology that has come on the scene in the last few years.

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OpenFin raises $17 million for its OS for finance

OpenFin, the company looking to provide the operating system for the financial services industry, has raised $17 million in funding through a Series C round led by Wells Fargo, with participation from Barclays and existing investors including Bain Capital Ventures, J.P. Morgan and Pivot Investment Partners. Previous investors in OpenFin also include DRW Venture Capital, Euclid Opportunities and NYCA Partners.

Likening itself to “the OS of finance,” OpenFin seeks to be the operating layer on which applications used by financial services companies are built and launched, akin to iOS or Android for your smartphone.

OpenFin’s operating system provides three key solutions which, while present on your mobile phone, has previously been absent in the financial services industry: easier deployment of apps to end users, fast security assurances for applications and interoperability.

Traders, analysts and other financial service employees often find themselves using several separate platforms simultaneously, as they try to source information and quickly execute multiple transactions. Yet historically, the desktop applications used by financial services firms — like trading platforms, data solutions or risk analytics — haven’t communicated with one another, with functions performed in one application not recognized or reflected in external applications.

“On my phone, I can be in my calendar app and tap an address, which opens up Google Maps. From Google Maps, maybe I book an Uber . From Uber, I’ll share my real-time location on messages with my friends. That’s four different apps working together on my phone,” OpenFin CEO and co-founder Mazy Dar explained to TechCrunch. That cross-functionality has long been missing in financial services.

As a result, employees can find themselves losing precious time — which in the world of financial services can often mean losing money — as they juggle multiple screens and perform repetitive processes across different applications.

Additionally, major banks, institutional investors and other financial firms have traditionally deployed natively installed applications in lengthy processes that can often take months, going through long vendor packaging and security reviews that ultimately don’t prevent the software from actually accessing the local system.

OpenFin CEO and co-founder Mazy Dar (Image via OpenFin)

As former analysts and traders at major financial institutions, Dar and his co-founder Chuck Doerr (now president & COO of OpenFin) recognized these major pain points and decided to build a common platform that would enable cross-functionality and instant deployment. And since apps on OpenFin are unable to access local file systems, banks can better ensure security and avoid prolonged yet ineffective security review processes.

And the value proposition offered by OpenFin seems to be quite compelling. OpenFin boasts an impressive roster of customers using its platform, including more than 1,500 major financial firms, almost 40 leading vendors and 15 of the world’s 20 largest banks.

More than 1,000 applications have been built on the OS, with OpenFin now deployed on more than 200,000 desktops — a noteworthy milestone given that the ever-popular Bloomberg Terminal, which is ubiquitously used across financial institutions and investment firms, is deployed on roughly 300,000 desktops.

Since raising their Series B in February 2017, OpenFin’s deployments have more than doubled. The company’s headcount has also doubled and its European presence has tripled. Earlier this year, OpenFin also launched it’s OpenFin Cloud Services platform, which allows financial firms to launch their own private local app stores for employees and customers without writing a single line of code.

To date, OpenFin has raised a total of $40 million in venture funding and plans to use the capital from its latest round for additional hiring and to expand its footprint onto more desktops around the world. In the long run, OpenFin hopes to become the vital operating infrastructure upon which all developers of financial applications are innovating.

Apple and Google’s mobile operating systems and app stores have enabled more than a million apps that have fundamentally changed how we live,” said Dar. “OpenFin OS and our new app store services enable the next generation of desktop apps that are transforming how we work in financial services.”

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Microsoft launches a fully managed blockchain service

Microsoft didn’t rush to bring blockchain technology to its Azure cloud computing platform, but over the course of the last year, it started to pick up the pace with the launch of its blockchain development kit and the Azure Blockchain Workbench. Today, ahead of its Build developer conference, it is going a step further by launching Azure Blockchain Services, a fully managed service that allows for the formation, management and governance of consortium blockchain networks.

We’re not talking cryptocurrencies here, though. This is an enterprise service that is meant to help businesses build applications on top of blockchain technology. It is integrated with Azure Active Directory and offers tools for adding new members, setting permissions and monitoring network health and activity.

The first support ledger is J.P. Morgan’s Quorum. “Because it’s built on the popular Ethereum protocol, which has the world’s largest blockchain developer community, Quorum is a natural choice,” Azure CTO Mark Russinovich writes in today’s announcement. “It integrates with a rich set of open-source tools while also supporting confidential transactions—something our enterprise customers require.” To launch this integration, Microsoft partnered closely with J.P. Morgan.

The managed service is only one part of this package, though. Microsoft also today launched an extension to Visual Studio Code to help developers create smart contracts. The extension allows Visual Studio Code users to create and compiled Etherium smart contracts and deploy them other on the public chain or on a consortium network in Azure Blockchain Service. The code is then managed by Azure DevOps.

Building applications for these smart contracts is also going to get easier thanks to integrations with Logic Apps and Flow, Microsoft’s two workflow integration services, as well as Azure Functions for event-driven development.

Microsoft, of course, isn’t the first of the big companies to get into this game. IBM, especially, made a big push for blockchain adoption in recent years and AWS, too, is now getting into the game after mostly ignoring this technology before. Indeed, AWS opened up its own managed blockchain service only two days ago.

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Enterprise SaaS Marketplace AppDirect Raises $140M Series E Round Led By J.P. Morgan

monetization-devices AppDirect makes it easier for enterprises to buy cloud services from the likes of Box, Google, Symantec and others (and serves as a kind of referral service for these businesses). The company today announced that it has raised a $140 million funding round led by J.P. Morgan. All of the company’s existing institutional investors, including Foundry Group, iNovia Capital, Mithril Capital… Read More

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