malay's comments

GOOG split in early April to create a third class of shares (Class C) that allows the founders to maintain control the company through their shares (Class B) for the foreseeable future. They had issued so many Class A shares, their 10:1 voting rights were becoming diminished.

Neither company cares about the comparison.

Visit rockhealth.com/startups/submit/ and let us know if you have any questions. We host office hours every week or I'm happy to walk you through it via e-mail.

We're a full-service seed fund. Our roots were as an accelerator, but over time, we have realized that we continue to support our portfolio companies long after they "finish" at Rock Health.

Our equity investment model is very similar to the YC/Start Fund relationship. KPCB, Mohr Davidow Ventures, and Mayo Clinic fund the companies we select with a $100,000 convertible note, at the same terms of an existing/pending seed round, or on flexible terms up to an uncapped note. We're different from YC in the sense that Rock Health itself takes no equity in the companies. We try to be extremely entrepreneur-friendly, and ultimately, the convertible note is entirely optional. For companies that don't want the note, we write non-dilutive grants up to $20,000.

In terms of whether we help our companies get funding (or not), our companies have raised more than $100M[1] from investors including Collaborative Fund, Felicis, First Round, Floodgate, Founders Collective, Founders Fund, General Catalyst, Khosla Ventures, NEA, The Social+Capital Partnership, SV Angel, True Ventures, and USVP, just to name a few (for context, our first cohort of companies finished at Rock Health in November 2011).

[1]http://rockhealth.com/about/annual-report/

We would love to hear more about it. We don't have any sequencing companies, but have multiple hardware and medical device companies in our portfolio. We don't shy from capital-intensive businesses.

Malay here from Rock Health—you're absolutely right. We have two close partners in the area (UnitedHealthcare and Mayo both) and come out once or twice a year.

I'd love to connect with the community next time I'm in the Twin Cities. Send me an e-mail (in profile or malay@rockhealth).

I was almost positive I had read the idea of Twitter as a protocol before (or something very similar), even though on Twitter[1] pg notes he never published this specific piece despite having written it in 2009. I really appreciated the simplicity of thinking of Twitter that way, and the definition has stuck with me.

In case anyone else wanted to know where they read it, it's under Request for Startups, #3[2].

[1] https://twitter.com/paulg/status/338702876744482816

[2] http://ycombinator.com/rfs3.html

For medical devices that are based on modern mobile platforms, the average FDA clearance time is down to 67 days. It's not nearly as capital-intensive as it used to be and there are going to be plenty of predicate devices to base your filings on.

The ubiquitous computing plus sensor environment is making healthcare hardware startups the norm—we're seeing more and more applicants in this space at Rock Health. We don't think the FDA process is that onerous, and just published a report outlining the process for entrepreneurs who are new to the space.

If you want to dig into the million SNP raw data from 23andMe any further than what is presented on the website, Jeff Hammerbacher and Konrad Karczewsk taught a Skillshare on doing your own personal genome analysis with Python and various other tools.

Slides here: http://www.slideshare.net/jhammerb/20130206skillshare

Github repo here: https://github.com/hammer/personal-genome-analysis

If you don't hear from one of our alumni because they happen to miss this thread, feel free to e-mail me (e-mail is in profile) and I would be happy to connect you with someone.

These are some good points. On the EHR question, I think what we would like to see is a company that starts using the work coming out of Standards & Interoperability (S&I)[1]. One can reasonably expect that much of this work will surface in Meaningful Use requirements (since one of the primary objectives of MU is interoperability) and thus would force vendors, including Epic, to comply. The platform here would do the "hard work" of integrating under the S&I frameworks to multiple endpoints and exposing the integration through developer-friendly APIs, similar to what Eligible has done on the administrative side. We see this type of "easy" integration leading to more modularity for EHRs (which is supported by Meaningful Use requirements) and ultimately better end products for hospitals and patients.

[1]http://wiki.siframework.org/

For a number of common health insurance transactions (verifying/checking health insurance information for a patient, procedure eligibility, patient demographics, claims status) that are part of the standard HIPAA transaction set, Eligible replaces legacy X12 EDI with a modern API.

Basically, if you are building any healthcare tools that could use administrative information from a health insurance company, you should probably be doing it on Eligible's platform.

http://eligibleapi.com

While I agree they are still heavily supply-constrained, the CapEx figures that Apple has released indicates they are significantly ramping up manufacturing capacity. They have sold more than 15M iPads in a quarter before. I would be surprised if they didn't have the capacity to sell 20-25M this holiday quarter.

Even using current run rate sales of the Nexus tablet, they would only be selling 3M a quarter. Apple sold 3M tablets in a weekend. If only 20% of the reported sales were for the iPad Mini, it is doubtful Apple will be outsold in the holiday quarter (even with giving competitors the extra month), especially considering its distribution reach. However, we'll never know, since neither Google nor Amazon release sales figures (Asus reported the Nexus number).

Pharmaceuticals represent approximately 10% of total health care expenditures versus hospital, physician and clinical services representing approximately 51% of total health care expenditures (for the latest estimated year of spending, 2010) [1].

Within Medicare, prescription drugs account for 11% of total Medicare expenditures and are projected to be 13.5% of total expenditures by 2021 [1].

Further, the prescription drug benefit ("Part D") has cost about 30% less than estimated by the CBO when the Medicare Modernization Act was passed (2003) [2]. This is due to a variety of factors, but a huge one has been lower-than-expected growth rates in per capita spending on prescription drugs, estimated at 4% per year since 2006 [2], much lower than overall growth in health spending.

[1] http://www.cms.gov/Research-Statistics-Data-and-Systems/Stat...

[2] http://www.kff.org/medicare/upload/8308.pdf

There was significantly more behind the scenes. It would be very similar to what PwC just paid for (rebranding from PriceWaterhouseCoopers) [1].

Accenture was a rebrand of Andersen Consulting, the consulting division of Arthur Andersen, the large accountancy. The Big-5 accountancy gave them their entire brand position, so the creation of the Accenture logo involved all of the campaigns for them to emerge, not just the logo or mark. This is also why their ads are in every airport—the brand identify had to be built from scratch. For Accenture, it ended up being exceptional timing, considering the Enron scandal would emerge in a year or so and end up destroying Arthur Andersen.

Most of the accountancies examined spinning out their consulting divisions, similar to Accenture. I wouldn't say the results were as successful as Accenture for those that chose to rebrand. E&Y sold their group to Cap Gemini, becoming Cap Gemini Ernst & Young, and eventually just Capgemini. PwC was going to spin out their division as "Monday", but instead ended up selling the group to IBM (only to eventually restart again). KPMG had BearingPoint, which eventually went bankrupt. Deloitte contemplated rebranding their consulting group as Braxton, but it never happened.

All in all, seems like the $100M was worth it.

[1] http://www.fastcodesign.com/1662367/pwcs-mighty-morphin-logo...

Changing the basis of competition in the marketplace from price to convenience (i.e., ease of use) is exactly what disruptive innovation is. Not all disruptive innovations are low end.

Stripe is actually more like a new market disruption because it is bringing in non-consumers who might not have even been able to setup payment processing without their solution. The same is true of Gumroad, or Shopify.

I don't disagree with the path you see Facebook going down and how disruptive it might be to Google. However, we shouldn't disallow for the chance that there will be an alternate future where "every little thing you do" is owned by an individual instead of a corporation or multitude of corporations. A personal data store, that companies pay the individual to access, is not inconceivable. It's being created by researchers[1] and start-ups[2] and may be accelerated by privacy laws.

[1] MIT Media Lab: http://media.mit.edu/research/groups/1448/openpds-privacy-pr...

[2] Personal: http://www.personal.com

Ballmer certainly deserves more respect. Microsoft is still growing and making significantly more money at higher margins than nearly every other company on the planet.

This article was published in a week where the CEO of a major corporation admitted that he was completely wrong when he called concerns about his bank a "tempest in a teapot" just 4 weeks ago. He called his own company "sloppy" and "stupid" on national television.

And Ballmer is the worst CEO?

The idea that you can mask learned knowledge of a company's strategy by simply not explicitly revealing sensitive information is a difficult concept to wrap my mind around.

It is not possible to unlearn the information. If you are acting as a strategic advisor, the information has to weigh in your mind and you implicitly will end up revealing information, practically subconsciously. A simple case would be where one company explains an experiment they ran (perhaps testing a feature with a small part of their customer group) and the result of the experiment. If the competitive company comes in and says they are thinking of running a similar experiment and explicitly asks the advisors what they think—what is the response given?

I have a hard time understanding how this type of accumulated information could not enter into future judgments the advisors are making. As a management consultant who faces this type of challenge frequently (and overcomes it by avoiding competitive clients and never sharing my work) I am honestly curious how one elevates themselves above this type of subconscious thinking.

It would seem that a number of wealthy folks have an interest in space exploration. Musk has been mentioned, but Peter Thiel has also funded someone pursuing the idea of resource extraction from near Earth asteroids. Granted, it was for the 20 under 20 fellowship, so he is focused more on the research and design component, but nevertheless a fascinating area for wealthy people.