The $1 billion acquisition of rent-to-own startup Divvy Homes, which was announced Wednesday, is expected to leave some shareholders without a payout, according to sources familiar with the deal.
The terms — and Divvy’s journey from buzzy startup to acquisition target — reflects the rollercoaster ride the proptech industry has endured over the past decade.
The San Francisco-based startup, founded in 2016, had raised more than $700 million in debt and equity from well-known investors such as Tiger Global Management, GGV Capital, and Andreessen Horowitz (a16z), among others. By 2021, the company was valued at $2.3 billion.
And while the Brookfield Properties purchase of Divvy for $1 billion was at half of its peak valuation, the acquisition could still be considered a win in an industry that has had a string of shutdowns and bankruptcies.
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However, it’s a loss for some shareholders, according to a letter from Divvy CEO and co-founder Adena Hefets, which was viewed by TechCrunch.
“If the transaction closes, Divvy will sell substantially all of its assets, namely its home portfolio and brand, to Brookfield for approximately $1 billion. However, after repaying its outstanding indebtedness, transaction costs, and liquidation preference to preferred shareholders, we unfortunately estimate that neither common shareholders nor holders of the Series FF preferred stock will receive any consideration,” according to the letter, which was sent to shareholders, former employees, and “Divvy supporters.”
FF preferred stock, also known as Founders Preferred Stock, is a type of stock that is issued to founders of a company. The law firm Cooley defines the shares as being issued to founders “at the time of incorporation in order to facilitate sales of stock by founders in connection with future equity financings.”
TechCrunch has reached out to Hefets and Divvy Homes for comment and will update the article with any response.
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Another source told TechCrunch that equity holders “got zero’d” so “founders, employees and VCs” will get “nothing” from the sale. The identity of the source, who asked to remain anonymous, has been verified by TechCrunch.
Divvy operated a rent-to-own model in which it worked with renters who wanted to become homeowners by buying the home they wanted and renting it back to them for three years while they built “the savings needed to own it themselves,” it said.
The company ran into some hiccups when mortgage interest rates began to surge in 2022, leading it to conduct three known rounds of layoffs in a year’s time. Divvy’s last known funding occurred in August 2021 — a $200 million Series D funding led by Tiger Global Management and Caffeinated Capital. The Series D round was announced just six months after a $110 million Series C.
Hefets also shared in the letter the “decision to sell wasn’t easy” and “came after a thorough review of Divvy’s strategic alternatives … and with significant deliberation around our options.”
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She said the move followed “years of fighting difficult market conditions, including rising interest rates, and making as many cost cuts as possible.”
As the company looked into what lay ahead in 2025, it decided the best way forward was to sell its “portfolio of homes now and return as much capital as possible to shareholders.”
“With almost a decade of pouring myself into this company, and believing in this mission, this was not the ending I had hoped for…While I am not proud of the financial outcome, I am proud of the impact we had on our customers’ lives,” Hefets added.
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Samsung Unpacked’s “one more thing” was a bit of a weird one. After the presentation ended, the company rolled a brief pre-packaged video of the Galaxy Edge — not to be confused with the “Star Wars” theme park of the same name.
Though limited, the reveal was confirmation of earlier rumors that the hardware giant is working on an extra-thin version of its new S25 flagship. The Galaxy S25 Edge is, presumably, another tier for the line, slotting in alongside the S25, S25+, and S25 Ultra.
Key details, including pricing, availability, and actual thickness were not revealed, though the company did showcase what appeared to be dummy models at Wednesday’s event. Early rumors pointed to a 6.4 mm thickness, a considerable reduction from the base Galaxy S25’s 7.2 mm.
Samsung clearly wanted to avoid taking too much wind out of the Galaxy S25’s sails during the event, so it opted instead for a more cryptic reveal. Even so, the mere appearance of the device at Unpacked may be enough to keep early adopters from preordering the S25 ahead of its February 7 release.
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After all, those are precisely the folks who get excited by things like a 0.8 mm profile reduction.
GMKTec joins HP with a Ryzen AI Max+ 395 workstation mini PC
The Max+ 395 is currently the world’s most powerful APU and could be a nuisance to Nvidia’s DIGITS GB10
Expect products based on the 395 to roll out later in Q2 2025 after Chinese New Year
GMK, an emerging Chinese brand in the mini PC market, has announced (originally in Chinese) the upcoming launch of a new product powered by the AMD Ryzen AI Max+ 395.
The company claims this will be the world’s first mini PC featuring the Ryzen AI Max+ 395 chip. It also plans to offer versions with non-Plus Ryzen AI Max APUs.
According to ITHome (originally in Chinese), the device is part of GMK’s “ALL IN AI” strategy and is expected to debut in the first or second quarter of 2025.
AMD’s Ryzen AI Max+ 395 chip
The AMD Ryzen AI Max+ 395 processor boasts 16 Zen 5 cores, 32 threads, and a 5.1 GHz peak clock speed. Additionally, it integrates 40 RDNA 3.5 compute units, delivering solid graphics performance via the Radeon 8060S iGPU.
According to benchmarks, the Ryzen AI Max+ 395 outpaces the Intel Lunar Lake Core Ultra 9 288V in CPU tasks by threefold and surpasses NVIDIA’s GeForce RTX 4090 in AI performance tests.
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With a configurable TDP of 45-120W, the processor balances efficiency and performance, positioning itself as a competitive choice for AI workloads, gaming, and mobile workstations.
This platform adopts LPDDR5x memory, achieving a bandwidth of up to 256GB/s. It also integrates a 50TOPS “XDNA 2” NPU, providing impressive AI performance tailored towards Windows 11 AI+ PCs.
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The Max+ 395 specs suggest that the new GMK mini PC will likely surpass the performance of the current Evo X1 model, which features a Ryzen Strix Point HX 370 APU and is priced at $919.
Salesforce CEO Marc Benioff was literally chuckling when talking to CNBC from Davos about the new rift in Microsoft’s relationship with OpenAI. As part of OpenAI’s plans to team up with SoftBank and Oracle on a $500 billion data center project called Stargate, Microsoft is no longer the exclusive cloud provider for OpenAI.
“I think it’s extremely important that OpenAI gets to other platforms quickly because Microsoft is building their own AI and I don’t think Microsoft will use OpenAI in the future. They’ll have their own frontier models,” Benioff predicted, laughing. “That’s why they hired Mustafa Suleyman. And Mustafa Suleyman and Sam Altman are not best friends.”
Benioff said their dislike was visible at the year-ago Davos show, “where Sam and Mustafa were on panels together and not getting along.”
The end of Microsoft exclusively hosting OpenAI was destined to happen. Microsoft invested $1 billion in OpenAI in 2019 — years before OpenAI released ChatGPT at the end of 2022. Now, OpenAI appears bound for its own tech giant status, perhaps one day to rival Microsoft. OpenAI has also blamed a lack of available compute for product delays, indicating it needs more data center capacity than Microsoft can (or perhaps wants to) provide. And OpenAI’s exclusive agreement with Microsoft was to end whenever OpenAI achieved what they both agreed was AGI. To hear Sam Altman tell it, AGI is possible now.
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Some reports indicate tension between the two companies has been building since at least mid-2023, after OpenAI released its own, competing enterprise product. After Altman was fired and reinstated as OpenAI CEO in late 2023, employees from both companies told Business Insider they really don’t like working together. OpenAI’s folks tended to look down on those at Microsoft, some employees said.
Just a few months later, in early 2024, Nadella thumbed his nose back by hiring DeepMind and Inflection co-founder Mustafa Suleyman to lead Microsoft AI. (Microsoft has not yet responded to our request for comment.)
While Benioff may hope that Microsoft will fully abandon OpenAI in the future, that could be wishful thinking, although Microsoft is reportedly working on its own LLM called MAI-1. Still, when Microsoft announced earlier this month a new AI group led by Jay Parikh that will build AI agents and apps, the post didn’t even mention OpenAI.
Even so, Benioff’s observations about Suleyman aren’t completely off. Suleyman has been known to dismiss Altman’s vision especially around AGI, and admitted last month in an interview with The Verge that the OpenAI partnership has “little tensions here and there.”
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Amid the Cold War, the possibility of a nuclear attack was deeply feared, yet at the same time, weirdly unimaginable. The stark terror of nuclear disaster persisted for years, highlighted in the 1984 BBC drama film “Threads”.
The film explored the hypothetical event of a nuclear bomb being dropped on a British city, and the societal breakdown that followed. People were horrified by the film, and it showcased everyone’s deepest and darkest fears around nuclear fallout.
Fast-forward nearly 40 years, and while nuclear fear still abounds, cybersecurity catastrophe is the new background dread – and in July 2024 we received our first major warning sign.
The CrowdStrike outage highlighted the widespread chaos that could ensue if millions of computers crashed simultaneously – reminding many people of the fear instilled during the Y2K bug.
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Now imagine this chaos, but instead of a software update gone wrong, it’s a cybercriminal targeting critical systems within a power station, resulting in a city losing power for a week. Or perhaps a vulnerability in a piece of fintech software triggering a 2008-style financial meltdown.
Whilst such an event may be difficult to envisage, the interconnectedness of modern systems makes it a real possibility. Achieving operational resilience must be the goal and this means prioritizing keeping business-critical functions running in the event of a serious incident. But to do so organizations first need to understand their minimum viable operation (MVO).
Trevor Dearing
Director of Critical Infrastructure at Illumio.
What is MVO?
MVO refers to the absolute minimum number of systems a business needs to remain operational or continue delivering services. This includes mapping out detailed rebuild protocols and establishing recovery measures to minimize downtime.
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Many organizations have come to realize that simply reducing the probability of a cyberattack to zero is impossible. Regardless of how much money organizations spend on security, it doesn’t make their systems or data less attractive to cybercriminals.
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Whilst money can’t reduce the probability, it can reduce the impact of an attack when spent correctly. Instead of focusing solely on breach prevention, organizations are increasingly shifting their investments to prioritize breach containment and impact mitigation, ensuring they can maintain their MVO.
In the power station example mentioned earlier, the organization’s MVO would include the SCADA and ICS systems that control energy creation, monitoring, and distribution. By identifying their MVO, the power station can build a cyber resilience strategy that protects these critical systems and keeps the power on when the inevitable breach occurs.
This approach is not an admission that cybercriminals have beaten us, but an acceptance of the reality that it’s impossible to guarantee immunity from breaches. Instead, it’s about limiting the impact when they do occur. There’s no shame in being breached; however, a lack of preparedness is inexcusable, especially for businesses in critical sectors.
Putting the MVO approach into practice
So where should you start? The first step in understanding your MVO is identifying the systems critical to maintaining operations, and this is unique to each business. For example, the systems considered part of an organization’s MVO will be completely different in retail compared to energy.
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Once these have been identified, you need to then identify the risks surrounding or linked to these systems. What are they communicating with and how? Consider risk vectors, the supply chain, and any third parties connecting to your MVO systems.
Like most organizations, it’s likely you rely on a significant number of third parties to operate – just look at the vast number of suppliers and contractors keeping the NHS running, and the impact of the attack on pathology supplier Synnovis. It’s critical that you understand which third-party systems are connected to your networks and limit and control what they have access to. Best practice is to enforce a policy based on least privilege to limit connectivity to the bare minimum required.
This is also where having an “assume breach” mentality is essential. Assume breach shifts the focus from solely trying to prevent unauthorized access to ensuring that, once inside, attackers’ movements are severely restricted and their impact is minimized. This not only helps you to strategically manage and mitigate risks, but also safeguard MVO assets and critical operations.
How Zero Trust supports an MVO approach
One of the best ways to adopt an assume breach mindset and protect MVO assets is by embracing Zero Trust.
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Zero Trust is a security strategy based on the principle of “never trust, always verify.” It enforces stringent least-privilege principles at all access points, minimizing the risk of unauthorized access. This approach significantly reduces the impact of attacks and aligns with a MVO approach by identifying critical assets, their usage, and data flows within the network.
Micro-segmentation technologies like Zero Trust Segmentation (ZTS) are foundational to Zero Trust as they divide networks into isolated segments with dedicated controls. With Micro-segmentation in place, you can restrict user access, monitor traffic, and prevent lateral movement in case of unauthorized access, isolating and safeguarding your critical assets.
Not all cyberattacks need to result in suspension of operations
The UK government has warned about the economic disaster that could unfold if a cyberattack on critical infrastructure was successful. However, for the reality is that the impact could be catastrophic for any enterprise or business that fails to safeguard its critical operations.
In Richard Horne’s debut speech as the NCSC CEO, he spoke about the increasing hostility faced by the UK, with attackers wanting to cause maximum disruption and destruction. And while a cyberattack might not immediately seem as scary as the nuclear attack in “Threads,” its disastrous impact on society is as significant as that of a weapon of mass destruction.
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Therefore, securing the assets that keep society and businesses running is essential. Not all cyberattacks need to end in business or operational failure. By prioritizing an MVO approach with Zero Trust and micro-segmentation at its core, you can ensure your organization avoids catastrophic fallout from attacks.
This article was produced as part of TechRadarPro’s Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro
After a turbulent few years for companies operating in the real estate market, Divvy Homes announced Wednesday that it is getting acquired by a division of Brookfield Properties for “a total consideration” of about $1 billion.
The outcome may not be the fire sale as previously described in other reports, although it is less than the $2.3 billion that Divvy was last publicly valued at in 2021. The deal is expected to close in mid-February. (Reporter’s note: After this story was published, TechCrunch learned that some Divvy shareholders may not receive proceeds from the acquisition, according to a letter from CEO and co-founder Adena Hefets that was viewed by TechCrunch.)
Divvy operated a rent-to-own model in which it worked with renters who wanted to become homeowners by buying the home they wanted and renting it back to them for three years while they built “the savings needed to own it themselves,” it said.
The company ran into some hiccups when mortgage interest rates began to surge in 2022, conducting three known rounds of layoffs in a year’s time.
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Founded in 2016, the once-buzzy startup had raised more than $700 million in debt and equity from well-known investors such as Tiger Global Management, GGV Capital, and Andreessen Horowitz (a16z), among others. Divvy’s last known funding occurred in August 2021 — a $200 million Series D funding led by Tiger Global Management and Caffeinated Capital. The Series D round was announced just six months after a $110 million Series C.
Maymont Homes, the Brookfield unit that is buying Divvy, operates in over 40 markets across the United States. In a written statement, Divvy said it has “created 2,000 homeowners to date.”
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The team behind Nord Security, Tesonet, Hostinger, Oxylabs launches AI orchestration platform
The orchestration platform aims to resolve a major pain point, deploying AI LLMs at scale seamlessly
$8 million raised to help enterprises handle the mounting amount of LLMs, with more than 200 now supported
As artificial intelligence tools rapidly evolve, businesses face growing challenges in managing AI models, balancing costs, and ensuring reliable performance.
Nexos.ai, a new unified AI orchestration platform from the founders of business VPN vendor Nord is designed to help enterprises deploy AI at scale by addressing these challenges; providing access to over 200 AI models to simplify their integration into enterprise
The company has secured $8 million in funding from investors, including Olivier Pomel, CEO of Datadog; Sebastian Siemiatkowski, CEO of Klarna; Ilkka Paananen, CEO of Supercell; and Avishai Abrahami, CEO of Wix.com.
Nexos.ai launch
Tomas Okmanas and Eimantas Sabaliauskas, co-founders of Nord Security and now Nexos.ai, faced challenges in integrating AI across various companies even after spending over $100,000 on large language models (LLMs) in some cases.
Feedback from businesses also revealed a lack in infrastructure capable of supporting scalable, high-quality, and cost-effective AI applications. Nexos.ai also includes models from providers such as OpenAI, Google, and Meta, to assist enterprises in managing their AI operations.
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“Companies know that AI is an operational and competitive necessity, but they’re drowning in the challenges of managing multiple models, controlling costs and ensuring accurate and reliable performance,” Okmanas said.
“At the same time, AI models are becoming increasingly autonomous and capable of handling complex tasks with minimal human intervention. We’ve built nexos.ai to be the enterprise-grade platform that makes working with AI as intuitive as working with human teams – providing the infrastructure and oversight to make sure these models perform at their best while remaining cost-effective and secure.”
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Scheduled for release in early 2025, the platform is already being tested by international companies to cater for automated customer support.
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An Indian tribunal on Thursday suspended restrictions that would have barred WhatsApp from sharing user data with its parent company Meta, delivering a significant victory for Mark Zuckerberg’s social media empire in its largest market by users.
The ruling by the National Company Law Appellate Tribunal temporarily lifts a five-year ban imposed by India’s antitrust regulator, which had accused WhatsApp of abusing its market dominance through its 2021 privacy policy.
India is the largest market for Meta and WhatsApp. More than 700 million users in India use WhatsApp each month, according to insights from Sensor Tower.
In November, the Competition Commission of India determined that WhatsApp’s “take-it-or-leave-it” privacy update constituted an abuse of Meta’s dominant position by forcing users to accept expanded data collection without an opt-out option.
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At the time, the watchdog found Meta was dominant in two key markets in India: a so-called “over-the-top” messaging apps through smartphones, and online display advertising.
While staying the ban on Thursday, the tribunal ordered Meta to deposit about $12.35 million — half of a larger penalty — within two weeks. The court will next hear the case on March 17.
The tribunal, led by Justice Ashok Bhushan, expressed concern that the five-year ban could threaten WhatsApp’s business model, which provides the messaging service free to users.
Meta’s lawyers argued that India’s forthcoming digital privacy law, expected to go into effect later this year, should govern such matters rather than competition rules.
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“We welcome the NCLAT’s decision to grant a partial stay on the Competition Commission of India’s (CCI) order. While we will evaluate next steps, our focus remains on finding a path forward that supports millions of businesses that depend on our platform for growth and innovation as well as providing high-quality experiences that people expect from WhatsApp,” a Meta spokesperson said in a statement.
The dispute began when WhatsApp required users to accept expanded data sharing with Meta’s platforms or risk losing access to the messaging service. While European users can opt out of such sharing, Indian users cannot — a distinction that regulators found problematic.
Good morning! Let’s play Connections, the NYT’s clever word game that challenges you to group answers in various categories. It can be tough, so read on if you need clues.
What should you do once you’ve finished? Why, play some more word games of course. I’ve also got daily Strands hints and answers and Quordle hints and answers articles if you need help for those too, while Marc’s Wordle today page covers the original viral word game.
SPOILER WARNING: Information about NYT Connections today is below, so don’t read on if you don’t want to know the answers.
NYT Connections today (game #592) – today’s words
Today’s NYT Connections words are…
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BETTER
BLANKET
SATCHEL
PAGAN
WIDEN
COOLER
WHIP
SMARTER
BASKET
ECLIPSE
BOMBER
UTENSILS
ТОР
FEDORA
SURPASS
VIXEN
NYT Connections today (game #592) – hint #1 – group hints
What are some clues for today’s NYT Connections groups?
YELLOW: Superior output
GREEN: Alfresco dining
BLUE: As seen in the Temple of Doom
PURPLE: Sounds likeWhite House residents
Need more clues?
We’re firmly in spoiler territory now, but read on if you want to know what the four theme answers are for today’s NYT Connections puzzles…
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NYT Connections today (game #592) – hint #2 – group answers
What are the answers for today’s NYT Connections groups?
YELLOW: OUTDO
GREEN: PICNIC ACCESSORIES
BLUE: PARTS OF AN INDIANA JONES COSTUME
PURPLE: RHYMES OF U.S. PRESIDENT NAMES
Right, the answers are below, so DO NOT SCROLL ANY FURTHER IF YOU DON’T WANT TO SEE THEM.
NYT Connections today (game #592) – the answers
The answers to today’s Connections, game #592, are…
BLUE: PARTS OF AN INDIANA JONES COSTUME BOMBER, FEDORA, SATCHEL, WHIP
PURPLE: RHYMES OF U.S. PRESIDENT NAMES PAGAN, SMARTER, VIXEN, WIDEN
My rating: Hard
My score: 3 mistakes
Oh my gosh I found today’s Connections difficult.
Maybe if the RHYMES OF U.S. PRESIDENT NAMES had included Chump I would have got there, but this wasn’t the only group I was mentally grappling with.
On my third attempt I managed to link BOMBER, FEDORA, SATCHEL, and WHIP, but it wasn’t because I thought they had anything to do with PARTS OF AN INDIANA JONES COSTUME – if I’m honest, I’d forgotten his bag preference.
Cluelessly, I thought they were accessories named after a person, based on the incorrect assumption that Fedora was someone famous in the 1920s. In fact, the history of the Fedora is much more interesting and culminates in a 2016 article that described the fedora hat as the world’s “most-hated fashion accessory”. Yes, this is the same year as a certain red cap rose to prominence.
Yesterday’s NYT Connections answers (Wednesday, 22 January, game #591)
GREEN: RESULTS OF SOME DIGGING DITCH, HOLE, PIT, TRENCH
YELLOW: TYPES OF ACADEMIC COURSES DISCUSSION, LAB, LECTURE, SEMINAR
NYT Connections is one of several increasingly popular word games made by the New York Times. It challenges you to find groups of four items that share something in common, and each group has a different difficulty level: green is easy, yellow a little harder, blue often quite tough and purple usually very difficult.
On the plus side, you don’t technically need to solve the final one, as you’ll be able to answer that one by a process of elimination. What’s more, you can make up to four mistakes, which gives you a little bit of breathing room.
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It’s a little more involved than something like Wordle, however, and there are plenty of opportunities for the game to trip you up with tricks. For instance, watch out for homophones and other word games that could disguise the answers.
It’s playable for free via the NYT Games site on desktop or mobile.
Stockholm startup Neko Health has made a big bet on consumers wanting to learn about their state of health and how to prevent things going wrong. Now, investors are making a big bet on Neko.
The startup has raised a fresh $260 million in funding, a Series B that values Neko at $1.8 billion post-money, TechCrunch has learned exclusively.
Neko will be using the capital to break into new markets like the U.S.; continue developing its diagnostics, potentially with acquisitions; and to open more clinics in response to demand. With its waitlist now at over 100,000 people – up from 40,000 just a few months ago – Neko has scanned and evaluated 10,000 patients to date in clinics in Stockholm and its newer market of London.
“It’s very clear that there’s incredible demand for a different way of thinking about health care,” Hjalmar Nilsonne, the CEO and co-founder, said in an interview. He spoke to TechCrunch over a video link from New York, where he is working on laying the groundwork for setting up clinics in the U.S. market.
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The U.S. is a priority, he said, because right now it accounts for the most people on its waitlist outside of Europe. “Of course, we want to come to the U.S. We think there’s a lot we could contribute to the ecosystem here, made possible by this funding round,” he added.
Lightspeed Venture Partners, a new investor in the company, is leading this Series B, with General Catalyst, O.G. Venture Partners, Rosello, Lakestar and Atomico participating. The round follows a Series A of $65 million in 2023 from Lakestar, Atomico, General Catalyst and Prima Materia, the investment firm co-founded by Spotify’s Daniel Ek, who happens to be the other co-founder of Neko. Prima Materia also seeded Neko with its initial funding but is not an investor in this latest round.
The funding and Neko’s growth are coming at a time when demands are shifting in the world of healthcare.
Around the world, whether healthcare systems are state-backed or privatized, there’s been a rising focus on preventative healthcare to spot signs before they develop into problems, including to offset the costs of handling chronic and complex conditions in populations that are living longer than before.
Alongside that, there has been a massive injection of technology into the worlds of medicine and health: new devices, new insights, and applications powered by, for example, artificial intelligence are changing how doctors are interacting with patients, what they are able to diagnose, and what patients are looking for in a medical environment.
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Not all of these advances are evolving seamlessly — very far from it — but they show few signs of going away, and Neko is playing into all of these changes.
The Neko Health experience involves a visit to a clinic — calm, futuristic, minimalist — where, for £300, a customer gets an hour-long exam based around proprietary hardware and software. That exam generates “millions of health data points,” Neko says.
Moles and other marks on your skin are detected and counted as part of a check for skin cancer; waist circumference, blood pressure, blood sugar, cholesterol and triglyceride levels, heart rate, grip strength and other parameters are measured and used to determine whether you are at risk of metabolic syndrome, stroke, heart attack, diabetes and more. The visit includes a consultation with a doctor and recommendations for follow-ups if needed.
Those follow-ups might come shortly after the initial visit — for example, further monitoring of blood pressure or heart activity — or it might be another full appointment the following year. Nilsonne said that currently 80% of its customers have rebooked and paid in advance for appointments in a year’s time.
Considering Neko is a company that has staked its whole ethos on the power of data and advance planning, it had a fairly random start in life.
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It was co-founded back in 2018 after Ek reached out to Nilsonne over Twitter to chat about the state of the healthcare market in response to a tweet of Nilsonne’s. Neither have backgrounds in the field – Nilsson’s previous startup was in climate tech – but through ongoing conversations, early ideas for Neko began to form.
It took six years to bring together a team and work out Neko’s vertically-integrated approach. Even so, Nilsonne said that Neko went into the market hoping for the best but unsure if their idea would resonate; now, according to the company, demand exceeds capacity.
Looking ahead, along with building more clinics to take in more users, Neko is focused on R&D around its medical hardware and software.
It’s starting from a fairly low-tech baseline because of the costs until recently of building and owning medical devices. “The average ECG machine in primary care is 15 years old, meaning the software is 15 years old,” Nilsonne said. “We have a completely different model where we’re vertically integrated, meaning we make these devices, we make the software, and we have the clinic.”
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He added that Neko’s aim is to have updates on a yearly cadence, bringing in more parameters to measure, and likely different tiers of service at different price points.
“The body scan today is kind of the iPod moment for Neko,” he said. “The iPod was an iconic product that people loved, and that was exciting. But no one today is using an iPod. It enabled Apple to invest in this incredible paradigm of hand held computational devices. So we very much see this as the beginning of a journey where we’re trying to contribute, you know, incredibly affordable, high quality preventative diagnostics, and every year we’re going to be able to do more and more with less and less.”
The funding round, he said, will “allow us to double down and really increase our investments in making the product better, which is ultimately about solving some of the core problems in health care.”
It will also give Neko a chance to put more space between itself and others looking at preventative healthcare opportunities, such as Zoi in France and Aware in Germany. The capital could also set it apart from efforts from public health services, such as the Health Check provided by the NHS in the U.K., which covers many of the same areas that Neko does.
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Some weeks ago, I heard from one of Neko’s early backers that some of the most insistent waitlisters were investors who wanted to check out the company first-hand for the health of their bodies and of their funds.
It seems that getting Lightspeed off the waitlist quickly yielded a strong result. As part of this funding round, Lightspeed partner Bejul Somaia will join Neko’s board.
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