Fitness research. Halloween costume. European pharma.
You Got Served…Fully
Nimble, a same-day delivery pharmacy, raised a $28M Series A from Sequoia Capital, Khosla Ventures, and more this week.
We’re starting to see more companies that are trying to own more parts of their vertical, becoming full-service startups instead of just another middleman. Want to fix drug distribution? Be a pharmacy (Nimble). Want to fix clinical trials? Be an end-to-end clinical research organization (Science37). Want to improve outcomes? Be a carrier (Oscar).
While they can reap more of the financial rewards and rely less on third parties, they also highlight another reality. It is super expensive and hard to scale these kinds of companies. Just to get off the ground these companies have to raise $25M+ immediately, and they’re probably going to burn through a ton of money just trying to take market share from well-known names.
Question is, is tech really enough of an edge to beat incumbents? These startups believe they can generate their own data, handle risk better, improve customer experience, and more. But existing players are examining their own offerings and figure out how to use tech themselves.
Some are even trying to be more customer friendly, maybe your next insurance call will go from 1 hour to 57 minutes.
Trick-Or-Treating Chronic Disease
This is the last newsletter before Halloween, so in case you need a good costume idea I wanted to help.
And if you want to burn some calories off from the sweets, we did a 70+ slide deep dive into the fitness industry. More ways to tell myself “I’ll start next week”.