INTRODUCTION
Blue Mesa Health was founded in 2015 and is a digital therapeutics company with locations in New York and Vancouver, British Colombia. Blue Mesa Health comprises of seven team members Curtis Duggan- CEO and Co-Founder, Misa Nuccio – CHO and Co-Founder, Evan Willms – CTO and Co-Founder, Amy Soetopo – Developer, Johnathan Bixby- Director, Joshua Bixby – Director. Mesa Health are a team of health professionals, operators and technologists. An important note is half of Americans are either diabetic or pre-diabetic. This company was founded to deliver preventive health solutions to the healthcare market.
Blue Mesa Health innovative product is called “Transform” which delivers a digital therapeutics solution specifically targeted at diabetes prevention. With (1/3) 33% Americans who are at the risk for diabetes the innovative product “Transform” would impact significantly the number of participants, achieved through a market of large employer and health plan customers. Blue Mesa Health partnered with Solera Health in 2015 and in 2016 partnered with Blueprint Health. The reason why they partnered with these companies are because it would contact more individuals who can benefit from “Transform”.
After the launching of “Transform” twelve months later Blue Mesa expanded its wings to “Transformemos”. The difference between “Transform” and “Transformemos” is it’s being translated in the language Spanish along with Spanish dieticians and coaches. Another partnership was made in January 2018 from a company outside of the U.S. Blue Mesa partnered with a Germany company called Merck KGaA on the Diabetes Prevention Program. Merck KGaA would pilot its Diabetes Prevention Program regions and territories outside of the United States.
MARKET ANALYSIS
Individuals with chronic diseases account for 81% of hospital admissions, 91% of prescription drug users and 76% of physician visits. A chronic disease is a human health condition or ailment that is persistent or otherwise long-lasting in its effects or a disease that comes with time. Some chronic ailments include Coronary Artery Disease, stroke, respiratory disease, some cancers, and kidney disease could be effects of advanced type 2 diabetes.
An estimated 33% of adults in the United States have either diabetes or are prediabetic. Prediabetes is a wakeup call to type 2 diabetes. Negative impact of type 2 diabetes includes but is not limited to:
- Increased cost of Medicare
- Absenteeism from work
- Poor productivity due to personal down time
These situations are preventable. With the aid of Blue Mesa, the progression of type 2 diabetes can be nipped at the bud while conditions for prediabetes reversed.
Blue mesa’s main objective is to provide remote, tailored diabetes prevention programs to employees and covered individuals in English or Spanish. The size of diabetes prevention market in the United States stands at $1.2billion with an estimated diabetic or prediabetic population of 84million not including figures for gestation diabetes.
PRODUCT
Transform: Digital Diabetes Prevention Program.
The product that Blue Mesa Health Care offers is directed to prevent diabetes. It works as follows: First, after the first payment is done by the customer, an airless scale and a new Fitbit Flex is sent directly to the customer’s home. Second, the user creates an account and downloads the app that is available for Apple and Android devices (also website friendly). In the platform and online dashboard users can find many resources such as Weekly lessons, dynamic progress measurements, online transformation community group and healthy choices such as diets and workout examples and exercises.
In addition, a personal coach will be assigned to the individual, the coach will be able to see the results directly from the scale and the Fitbit to see the progress. The client will have monthly meetings with the coach to set new achievable goals and to check if the customer is accomplishing their objectives. Also, the coach will be available via phone and in app chat.
Additionally, the product is also available for those who are not smartphone users, Blue Mesa offers the product by mail and email and the personal coach would be available by phone and email. The product (Transform) is now available in Spanish with app in Spanish and Spanish speaker coaches. It is important to mention that Blue Mesa and its Coaches are approved by CDC (Center for Disease Control).
In Summary, Blue Mesa Health Care practices the art of prevention providing social support through coaches and connecting individuals to share their experiences. They provide healthy diets and encourage customers to eat healthy and workout by monitoring weight. And finally, by monitoring physical activities with the Fitbit Flex. Some goals for customer could be as follows: lose 7% of body weight, increase physical activities, instill healthy behaviors, all these together will reduce the risk of diabetes. In other words, the 12-month Blue Mesa product will add healthy habits and routines to the costumers in order to prevent diabetes, after those 12 months there are from 3-6 months follow ups from the coaches to make sure the change is sustainable.
COMPETITION
In the market, we need an understanding of startups’ target market and the current economic conditions, in order to find the most suitable startup. According to our survey, Blue Mesa Health is a good choice. This is a health care company, which delivering digital behavior change programs to support the prevention diabetes and other chronic diseases. Blue Mesa has some competitors and the most competitive companies are Noom and Omada.
Noom has mobile programs which has several measures for different chronic diseases. It provides a serious of curriculum, experienced coaches, mobile tracking and callable coaching tools. 71% of people are at lower risk of developing diabetes. Noom has mobile application which gathers data from medical devices, such as FitBit Flex, One Drop Chrome, Omron BP786.
Omada is an startup in digital behavioral medicine, which has an innovative method to prevent, manage, treat and monitor in type 2 diabetes, heart disease, and obesity. Omada’s online programs combine the advanced technology and unique design. They also have good performance in practice.
Although these startups are competitive, only the Blue Mesa’s curriculum have CDC approval, people do not need to worry about its safety and effectiveness. The price for the program in Blue Mesa is more than twice cheaper comparing with other companies. Until this year, the Moon has already raised $26M and the Omada raised $126.5M. But the Blue Mesa just raised $1.3M. Philips has opportunity to use $1.5M to $3.5M to get the 10% Blue Mesa’s equity. Therefore, the Blue Mesa is the most suitable startup for Philips.
BUSINESS MODEL
Blue Mesa has a pay-for-performance business model. The company earns monthly customers’ fees in delivering behaviour change one year program. The customers of Blue Mesa can be employers concerned about rising costs related to chronic diseases, health authorities and individuals considering diabetes prevention.
Blue Mesa has all major components of an effective pay-for-performance model.
- Evaluation. The company clearly define targets for customers individually that could be easily measured with devices provided in the beginning of program.
- Consistency. All of the measurements are being delivered straight to the cloud storage and user-friendly app and can be accessed anytime by either customer or personal coach assigned to this customer. The data collects on everyday basis to unsure that customer is on track.
- On-going coaching. Every customer has personal coach who provides timely feedback on past performance and makes suggestions for future activity change.
First month fee is $188. It includes two smart devices: Fitbit bracelet and remotely operated scale. From the second to 12th month the fee is 39$ per month. We know that at the end of 2017 the company had about 6000 customers. With roughly estimation the 2017 annual revenue was up to $3M. According to the conference call with Blue Mesa’s CEO, the expected growth rate to be tripling every year so it gives us the forecasted $81M revenue in 2020.
ROADMAP
On May 6th, 2015 Blue Mesa Health launched its innovative new product “Transform” with various selected providers and partners. Transform is a lifestyle program that integrates remote coaching from dieticians, a support peer group and a smartphone application technology with connected bathroom scales and activity trackers. This is a digital health platform for pre-diabetes and is a remotely delivered diabetes prevention program which are delivered by real heath coaches. With the launching of “Transform” Blue Mesa Health has designed and commercialized two chronic disease prevention programs based on the CDC’s (Centers for Disease Control) landmark National Diabetes Prevention Program.
Later that year in December 2015 Blue Mesa Health partnered with Solera Health (An integrated health network) to deliver “Transform” the Diabetes Prevention Program. The partnership would increase Blue Mesa Health capacity to contact more individuals who can benefit from “Transform”. Solera Health would have the capacity to offer clients a digitally-delivered diabetes prevention program. On February 9th, 2016 Blue Mesa Health partnered with Blueprint Health to increase their ability to help prevent chronic diseases with first class digital behavioral change programs. Blueprint Health are in the company of a few ventures such as Healthily, GlucoIQ and Oculus Health.
Twelve months later “Transform” expanded its wings into “Transformemos” which is the Spanish version of “Transform”. It is now being translated in the language Spanish along with Spanish dieticians and coaches. Blue Mesa Health closing seed round was 1.3 Million July 24th, 2017.
For the new year Blue Mesa partnered with a Germany Company Merck KGaA on the Diabetes Prevention Program. This Germany company is a leading science and technology company. Merck KGaA would pilot its Diabetes Prevention Program regions and territories outside of the United States. Also, this company is a global player in the type two diabetes and they are continuously improving the lives of patients with type two diabetes.
Based on the Conference call from Blue Mesa Health CEO Curtis Duggan the future for this company are expanding more in European countries and launching in South America for 2018. In 2019, Blue Mesa Health would be applied for prevention of other chronic diseases.
TEAM
Curtis Duggan – Chief Executive Officer
Mr. Curtis Duggan is a Co-Founder and Chief Executive Officer at Blue Mesa Health Inc. His main experience and background can be summarized as an agency owner in the technology’s field, mobile’s product development, and user experience design. Since 2015, trough Mesa Health Mr. Duggan is trying to scale chronic diseases prevention programs to those who need it.
Misa Nuccio – Chief Health Officer
Ms. Misa Nuccio, MPH, is a Co-Founder and Chief Health Officer at Blue Mesa Health Inc. Misa. Nuccio has lot years of experience in chronic disease prevention to the team. She has worked in chronic disease prevention for more than 6 years and previously employed for the American Cancer Society and got an MPH from Columbia University.
Evan Willms – Chief Technical Officer
Evan Willms Co-Founder and Chief Technical Officer at Blue Mesa Healt, has been developing lot of great products for more than a decade, with a previous working experience for companies like Unbounce, Procurify and Meltwater Systems.
Steven Kabanuk – Chief Operating Officer
Steven has been developing his experience as a leader managing surgical services for 15 years and has formal training in business and operations research. Most recently, he led a 700 employee, $100M portfolio in British Colombia’s largest hospital.
Adrian Cunanan – Director of User Experience
Ms. Adrian Cunanan has more than ten years of experience in Design, Product Management, & Entrepreneurship. His past clients include companies as Y-Combinator, 500 Startups, Startup Leadership, Boost.vc, Blueprint Health, & Dreamit Health.
Amy Soetopo – Software Developer
Ms. Amy has worked developing great mobile and web apps for companies like Stanley Park Ventures, Koho and Lendful.
The Directors
Jonathan Bixby – Co-Founder, Director
Jonathan is an outstanding entrepreneur with two recent successful exits among his records. Mr. Jonathan Bixby has founded, managed and exited several technology ventures, the most recent one is the sale of Strangeloop to Radware in 2013.
Mike Benna – Co-Founder, Director
Mr. Benna academic background is an Engineering Phd obtained at University of British Columbia from 1984 to 1987. He has been a General Partner at Stanley Park Ventures Ltd. since March 2013. He also founded Blitzoo Interactive in December 2009.
FUNDING
Blue Mesa Health raised $1.3 million in an initial seed round of funding on June 2017 and they closed more some more rounds in the next quarter. Blue Mesa Health’s main investors are Mobio Technologies, Blueprint Health, Redbrick Media, Pallasite Ventures and Stanley Park Ventures. More than that, the startup’s CEO Curtis Duggan is willing to raise a Series A round in the course of 2018, with a pre-money valuation included between $15M and