Collapse of Humane AI, LaunchVic's Bets, and a Cure for Cancer

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The Collapse of Humane AI?

HP Inc. acquired Humane AI for $116 million. Humane AI was set to revolutionise the way we interact with technology and AI. It was a device smaller than my AirPods case, yet capable of almost everything an iPhone could do.

In my opinion, this was one of the most innovative consumer tech devices since the Steve Jobs era of the iPhone. So, what went wrong?

The Rise and Fall of Humane

In 2019, two former Apple engineers, Imran Chaudhri and Bethany Bongiorno, left their senior positions at the tech giant to build Humane AI.

Their brainchild, the AI pin, was a wearable voice-controlled smart assistant that could answer calls, send messages, set reminders, count calories, and do so much more. The startup was backed by US$240 million in funding and 300 patents.

Yet, despite its futuristic appeal, the AI Pin failed to gain traction. With a pricey $699 price tag and an additional $24 monthly subscription, many potential customers saw the AI Pin as an overpriced gimmick rather than a game-changing innovation (like the iPhone).

Some technical issues led to mass returns, and ultimately, the company-once valued at $850 million-was acquired by HP Inc. for a mere $116 million. The investors took a massive hit.

The lesson? While the AI Pin’s small size gave it an edge, it didn’t do anything an iPhone couldn’t already do. This is why entrepreneurs should focus less on making ‘cool’ gadgets and more on solving real problems that customers actually need solutions for.

LaunchVic Bets on Healthtech

LaunchVic’s 30×30 program, designed to fund startups with the potential to become billion-dollar companies, has gone beyond its original 30-company target, now investing in 39 startups. This year alone, 11 new companies received funding.

This is a great initiative. Fast-growing startups often require mentorship and capital to scale. Therefore, more programs like this could be game-changers for the startup ecosystem, especially healthcare.

The fund has previously invested in biotech companies, such as Nutromics. The health-tech companies that received funding this year include:

1. Ausmed - A healthcare education platform tailored for Australian healthcare professionals.

2. IMRA Surgical - a company offering surgeon-led robotic surgical training for new specialists, using simulations and virtual reality.

LauchVic CEO, Dr. Kate Cornick, mentioned that the majority of referrals to invested companies came from investors who had already backed them. This collaboration between funds to support emerging companies is required to boost the entire startup ecosystem.

Weekly Deep Dive: Defense

When Beaten Zone, a firm investing in early-stage defense startups, raised AU$10 million out of a total of AU$60 million in early February, it seemed like an ambitious goal, especially since Australia already allocates 2% of its national GDP to defense.

For context, during his first term, Trump publicly pressured NATO countries (a group of 32 countries committed to mutual defense) to spend at least 2% of their GDP on defense. By 2023, only 11 countries met this target. However, in anticipation of Trump’s potential return in 2024, who has been very vocal about not protecting countries that spend less than 2%, a surprising 24 NATO countries met the 2% target.

Australia, however, already invests 2% of its GDP into defense.

Given this, people thought that Australia wouldn’t face any pressure from Trump or his administration on defense spending, meaning funds like Beaten Zone might struggle to raise capital. But this week, U.S. Energy Secretary Chris Wright made headlines in London by suggesting that he’d like to see Australia supply uranium and adopt nuclear energy.

As I recall from Andrew Fowler’s book Nuked (which I highly recommend), most Australians have historically opposed nuclear energy. Wright’s comments, however, could spark a significant boost in local defense spending, whether nuclear or not, in the near future. As a result, raising AU$60 million for firms like Beaten Zone now seems more achievable than ever.

Scientists Found WHAT?

A potential cure for an incurable disease?

A potential cure for pancreatic cancer: Only about 10% of people with pancreatic cancer survive beyond 5 years after diagnosis. This is mainly because around 90% of cancer cases are detected after the cancer has metastasized, making it extremely difficult to slow the progression of the disease.

Scientists have developed personalized mRNA vaccines and showed promising results in a small, early-stage Phase 1 clinical trial for pancreatic cancer treatment. In this study, 50% of the participants showed a lasting immune response to their cancer cells. Tumor growth was reduced in 50% of patients.

This is huge, considering 90% of pancreatic cancer patients die within 5 years post-diagnosis. The cells produced in response to mRNA that inhibit tumor growth can remain in blood for decades, potentially preventing tumor recurrence.

This discovery is groundbreaking because 90% of pancreatic cancer cases involve a mutation called KRAS. This means non-personalised mRNA vaccines could now be produced in bulk, bypassing the need to create a new vaccine from each patient’s tumor. While the research is still in its early stages, the results are very promising.

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