Roundup of news and ideas from the world of startups – Week ending 17th Nov 2019.
News you can use
UA’s Arizona Forge set to become crucible for Tucson startups – The University of Arizona’s nascent Arizona Forge has been called a business incubator, but it will be much more than that when it opens in February at the historic Roy Place Building downtown. The building at 44 N. Stone Ave. — formally known as the Arizona Forge Business Innovation Hub — will serve as a nexus between UA students and faculty, startup founders and corporate innovators, fronted by the nonprofit entrepreneurship group Startup Tucson.
Google’s data privacy scrutiny continues, new Peloton machine rumors and more digital health news briefs – The increased spotlight on Google’s healthcare privacy practices doesn’t seem to be letting up, with the Washington Post publishing a story this morning detailing a botched arrangement between the tech giant and the National Institutes of Health back in 2017. The two groups had a research arrangement centered on more than 100,000 chest X-ray images provided to Google by the NIH. However, according to an anonymous source and emails obtained by the Post through a Freedom of Information Act request, Google was days from publicly posting these images before being stopped by the NIH due to concerns that many contained identifiable details.
Startup Merger and Acquisitions
Amazon Makes Healthcare Buy As Its Plans Start to Take Shape – The e-commerce giant just bought a telemedicine technology startup to help with its healthcare-related efforts. In what is its first healthcare-related acquisition since spending $753 million in June 2018 to acquire PillPack, Amazon.com (NASDAQ:AMZN) inked a deal to buy Health Navigator, a start-up that provides digital triage tools and symptom lookup. The value of the deal was not disclosed. Amazon intends to offer Health Navigator services to its employees, shedding further light on where the e-commerce giant is heading in the healthcare market.
Nike has picked up Russell Wilson’s Tally/TraceMe in a rare acquisition – Nike has prolonged been synonymous with premium sneakers and utterly different sports gear, nonetheless now the corporate would be extending its model into one more role — digital media — ensuing from the rumored acquisition of a Seattle-based startup. TechCrunch has realized and confirmed that the multibillion-greenback sports big has acquired TraceMe, which on the delivery built an app to let fans settle with sports stars and utterly different celebrities sooner than later pivoting right into a service called Tally, a platform aimed at sports teams, broadcasters and venues to again fans settle around carrying events.
Canada-based ATB Financial acquires FinTech startup Grow Technologies – ATB Financial has acquired the technology assets of Vancouver-based FinTech startup Grow Technologies Inc, to offer a revived digital experience to its customers. The company recognized its customers’ need for online tools that enable quick account opening and loan requests. With Grow’s acquisition, ATB’s customers will soon have access to an easy-to-use and time-saving digital platform that will offer an improved banking experience, according to a statement.
PaySense To Enter Lending Segment With NBFC Acquisition – Mumbai-based fintech startup PaySense has decided to enter the lending sector completely by acquiring an undisclosed non-banking finance company (NBFC) for INR 3 Cr. The NBFC buyout will allow the company to get an NBFC license and lend its capital, instead of being a service provider.PaySense has applied for the Reserve Bank of India (RBI) licence to begin lending. In addition, the company is also looking to raise $150 Mn to $165 Mn equity stake to have enough capital to support the process. The company’s founder and CEO Prashanth Ranganathan told ET that PaySense is looking for a long term partnership though mere equity and acquisitions.
Digital Media Startup Zumi Shuts Shop – The African lifestyle and fashion focused media platform Zumi announced that it is shutting shop after struggling to make decent revenues as well as raise capital.
Launched in 2016, Zumi had raised over USD 250K from Chandaria Capital, UAE based Majlis investment and a few other investors. Founded by Ex-Rocket Internet Africa Employees William McCarren and Sabrina Dorman, Zumi was planning to pivot into an eCommerce platform as advertising revenue didn’t pick up.
Doodhwala shuts down operations; FreshToHome takes over its consumer base – Microdelivery business (aka subscription commerce) isn’t an easy business as making money through selling milk is tough. We have witnessed the shutdowns of several startups as well as the consolidation of a few with large companies interested in the space. The segment seems to have seen another casualty. Bengaluru-based Doodhwala has stopped operations due to certain undisclosed constraints. According to an email sent to its subscribers, FreshToHome will continue to service Doodhwala’s customer base in Bengaluru.