Thank you Sergei Polevikov
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Perhaps the “murder” theme isn’t the most well-timed.
For those who’ve followed my work, you’ll know I’ve spent significant time dissecting the “pump and dump” schemes in venture capital. Until now, the bulk of my analysis has been laser-focused on the “pump” phase—examples abound here, here, and here.
There are two phases at work as illustrated below.
What could possibly go wrong?
According to their VC overlords, the IPO was the ultimate goal, the champagne-popping celebration of success. Instead, these companies—corrupted by venture capital’s destructive “champagne and cocaine” mentality—found themselves woefully unprepared for the disciplined, public-facing demands of life as a publicly traded company. The VC's goal is to 'sell'. That is plain and simple. The companies they invest in have stellar credentials, a market need, a good design, acceptance by providers and/or patients, and exponential growth.
MBA schools apparently teach graphs, business models, spreadsheets, and a few ethical constraints.
Greed played a large role in the debacle. It all begins when venture capital is used to buy other companies in unrelated activities. The idea of further exponential growth leads to overspending, increased overhead, and purchasing other businesses that VCs know less about than the original acquisition. The VCs have no real interest in the core content of digital businesses.
Take Teladoc for instance. Teladoc was a very successful early adopter of telehealth, doing very well until they allowed themselves to seek V.C. After the infusion of capital Teladoc purchased Livongo, a company focused on remote monitoring and management of diabetes, blood pressure, and weight management. Smart devices, expert support, and health management strategies available at no cost through your company benefits.
Here are more details of the evolving pandemic of VC infection
2️⃣ Google’s $100 Million Bet on Amwell Evaporates. Poof... 🪄
3️⃣ Another Telehealth Magic Trick: Glen Tullman’s $18.5 Billion Lemon Sale of Livongo to Teladoc Shareholders. Tullman successfully ran Allscripts, a well-known EHR vendor, then went on to run Transcarent, an application for businesses to use for self-insurance.
5️⃣ Amwell’s 1.9-Star Customer Reviews
6️⃣ Amwell’s Biggest Customers
7️⃣ VC Bros’ Magic Trick: Pump, Dump, Disappear
8️⃣ The ‘Champagne and Cocaine’ of COVID Overspending: The Telehealth Crash
9️⃣ Amwell’s Volatility and Illiquidity: A 1999 Internet Startup Vibe from the Parents’ Basement
🔟 Splitting Shares Is Worse Than Splitting Hairs
1️⃣1️⃣ Amwell’s Survival Scenarios: Slim Pickings
1️⃣2️⃣ My Thoughts on the Telehealth Market in 2025 and Beyond
The Health AI IPO Checklist: How to Spot the Next Unicorn or Sniff Out the Next Donkey
Just look at the list of recent digital health startups turned IPO compiled by Blake Madden. It’s a bloodbath of red.
How it works.
Let me pause here for a second. Most people don’t realize how tech giants like Google and Microsoft invest in healthcare. These corporations sprinkle a little bit of money ($100 million is a drop in the bucket for Google) across multiple startups in diverse areas: telehealth, mental health, AI, therapeutics, etc., and see what sticks. It’s like playing Pin the Tail on the Donkey while blindfolded. Most of the time, the tail doesn’t fit, but they are waiting for that one big time when it finally fits.
Admittedly I do not know much about business, however, in my later years, I read a lot. I know now why I chose to be a doctor even if it is much more difficult now.
I feel for my younger brethren. Many now realize their mistake and are looking for exit strategies. Physicians no longer are in control. The strict moral and ethical codes have been ripped from Hippocrates to the Mark Cubans,
1. Alexis Ohanian 167
4 Ashton Kutcher 68
The number following their names is the number of investments in healthcare each VC owns.
A look at 2024 and the past decade is no indication of future success. (Fierce Health Care)
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