materiAI

materiAI

 

Problem/Opportunity

 

Advanced materials, commonly segmented as ceramics, glasses, polymers, composites and metals & alloys, are one of the most important inputs in the design and engineering of industrially manufactured products ranging from semiconductors, consumer electronics, automobiles, and aerospace engineering. Advanced materials are essential both to the development of new products that were previously infeasible as well as improved performance of existing products  (e.g. inception of the Gorilla Glass used in Apple’s iPhone screens) and more cost-efficient manufacturing of the same. The advanced materials market was estimated to have annual revenues of $42.8 billion in the US in 2015, and is expected to grow to a size of $102.5 billion by 2024.

 

However, significant challenges remain in satisfying the growing demand for new industrial engineering applications. Many of the materials currently used – in their natural form – are already either very rare (e.g., platinum) or very costly to extract (e.g., aluminum and titanium). The result is an exceptionally high demand for developing new advanced materials in a variety of different ways. When combined with other elements to create new materials, such as “high-strength, lightweight alloys”, the process requires precision, as even a slight difference in composition can result in performance discrepancies. As such, manufacturing companies, such as 3M and Morgan Advanced Materials, spend on average ~5% of sales on R&D, often conducting “expensive and time-consuming, trial-and-error experiments to find the right combination of components and manufacturing processes”. Given how important breakthrough materials are in enabling many nascent technologies (e.g. solar panels, electric vehicle batteries, etc.) as well as those in which there are likely to be breakthroughs in the near future (e.g. nanotechnology), there is a need for a speedier and more cost-efficient way to discover new materials.

 

Many people within the field believe that it is likely that big breakthroughs are likely to happen in the near-future, pointing to initiatives such as the Materials Data Repository (MDR) and the Materials Government Initiative (MGI) that have opened up massive datasets containing information about advanced materials development that are only beginning to be explored. In spite of these initiatives, most materials science academic programs do not currently include a strong emphasis on computational materials science development methods, leaving a significant opportunity for groups willing and able to specialize in those methods.

 

Solution

Our solution, materiAI, leverages big data and AI to map out the chemical and physical traits of different materials and forecasts how they can combine with one another. For example, MateriAI can identify properties that allow certain materials to be better at conducting electricity and absorbing energy, or to be stronger but lighter, than others. By establishing patterns and understanding relationships like these, our solution can assist researchers and materials engineers in the discovery and creation of new materials. It can sift through all possible compositions and create “recipes” that optimize for qualities, such as durability, malleability, transparency, scratch-resistance and more. In addition to composition, the algorithm can also learn about the optimal processes (e.g. melting or beating metal, at what temperatures, etc.) for desired results.

 

Pilot/Prototype

 

Similar to IBM Chef Watson’s training set, we would parse white papers, research and the internet to understand how metals react, which combinations work and how properties are created based on the attributes of the combined materials using an algorithm developed at Google called Word2vec which looks at context in which word occur. Given that material scientists have used computational modeling for years (with varying degrees of success) to suggest properties for different applications, our solution would aggregate and harness this knowledge to make more accurate predictions. To prioritize, we would start by selecting a material, such as ceramics, which has a high potential for disrupting multiple industries. With a multitude of requirements for different types of properties based on the industry our technology would be extremely useful in tailoring the material based on the industry. Automobile manufacturers leverage the thermal and electric properties of ceramics and may not require it to be porous, substituting the porosity for ideally a strengthening component. This may not be the case when used in the medical equipment industry wherein its reaction to water and body fluids is the priority. Starting out with ceramics will provide us with valuable insights across a diverse set of industries giving feedback which can be incorporated when moving into new materials specific to an industry.

 

Validation

To ensure our algorithm works in creating optimal combinations for new material inputs, we would want to run tests on effectiveness and market adoption. For effectiveness, we would want to make sure that our “recipes” create mixes that are at least as good as the input they are trying to replace. This would mean running tests on durability, integration with other parts, speed and ease of us, and overall quality. In terms of market adoption, we would also want to test whether a) the algorithm attracts users and b) whether the “recipes” are utilized. This would require analysis of price (willingness to pay), number of customers who purchase, number of times algorithm is used, how many “recipes” are created, how often these “recipes” are used, and how often the resulting compound is used. These data statistics would also lend itself to a feedback loop so that the algorithm can continue to improve.

 

Competitors

Currently, there are a few research labs at MIT and Stanford, as well as startups, such as Citrine Informatics that are taking an AI-driven approach to materials development. However, this so-called “materials informatics” approach represents a very small share of advanced materials research and development. Thus, in spite of these existing competitors, the size of the market opportunity should be large enough for a number of entrants to be successful, especially for those entrants that are able to be early-movers in the space.

 

Our startup will also differentiate itself from its competitors in two primary ways. First, materiAI will employ an anonymous data-sharing platform through which companies can elect to share historical research data in exchange for a reduction in price or as a means of accessing richer data from other companies that have opted in to the same. Second, Citrine Informatics has concentrated its early efforts on a handful of target verticals, namely aerospace engineering, chemicals, and consumer electronics. By focusing on different verticals such as the automotive, medical, and construction industries, we can capture an entirely different segment of the advanced materials market without significant overlap with our competitors.

 

Sources

https://www.energy.gov/eere/amo/articles/artificial-intelligence-future-new-materials-discovery

https://www.nist.gov/property-fieldsection/advanced-materials-accelerating-materials-discovery-and-data-tools-industry-5

https://www.mckinsey.com/industries/metals-and-mining/our-insights/is-there-hidden-treasure-in-the-mining-industry

www.sciencemag.org/careers/2004/11/materials-science-doing-numbers

https://www.forbes.com/sites/quora/2018/05/02/why-were-overdue-for-a-big-breakthrough-in-materials-science/#1d7ed79964e4

https://www.nsf.gov/mps/dmr/mse_081709.pdf

https://www.msesupplies.com/blogs/news/118155140-2016-review-of-r-d-for-advanced-materials-and-chemicals

https://www.sciencedirect.com/science/article/pii/S1369702107703516

https://www.technologyreview.com/s/424631/advanced-manufacturing-and-new-materials/

http://ceramics.org/wp-content/uploads/2011/08/applications-ceramic-apps-auto-hoffmann.pdf

https://www.sciencedirect.com/science/article/pii/S1359028617300220

https://www.theverge.com/2018/4/25/17275270/artificial-intelligence-materials-science-computation

https://www.inc.com/greg-satell/this-startup-is-combining-big-data-and-materials-s.html

 

Team

Siddhant Dube

Eileen Feng

Nathan Stornetta

Tiffany Ho

Christina Xiong

Profile: Steem

Opportunity

Blockchain technology for the use of rewards distribution presents a large opportunity, especially within the content and social media space. There are numerous forums that exist today where users can share news and other content. From Facebook newsfeed to Twitter to Reddit, users are inundated with posts the moment they log in. However, there hasn’t yet surfaced a real solution for monetizing the sharing of content or the voting of quality by readers. Monetization would accomplish two different goals: a) incentivize more users to post and evaluate posts and b) incentivize higher quality in posts overall.

User-generated content creates billions of dollars of value for the shareholders of social media companies (i.e. the intermediaries). In 2016, global revenue from social media was $32.8 billion. In 2019, global revenues are expected to reach $47.6 billion.

Recently however, existing platforms like YouTube have modified their monetization rules, reducing the level of transparency and causing consternation among nearly all the channels. The new monetization rules have resulted in a loss of $100 a year in advertising revenue per content creator. Losing even a tiny profit can dissuade a small creator who may be just getting started, and the majority of YouTube comprises small creators. Not focusing on the small creators could create a significant change in the platform as a whole, since a majority of people on the platform are up and coming content creators and a shift could trigger a waterfall effect.

“It discourages everyone else from building a channel from the ground up, subscriber by subscriber, week by week, the way so many original YouTubers did,” says Matt Wallace, a writer and YouTuber with a modest audience.

 

Solution

Steem was developed as a blockchain-based rewards platform for publishers to monetize content and grow community. It’s the first application that attempts to accurately and transparently reward individuals who make subjective contributions to its community, for example by submitting blog posts or voting on articles, images and commentary, and consequently increasing their popularity. Steemit is the proof of concept created to enable users to participate in these use cases.

 

Steem is based on two founding principles.

 

  • The most important principle is that everyone who contributes to a venture should receive pro-rata ownership, payment or debt from the venture. This principle is the same principle that is applied to all startups as they allocate shares at founding and during subsequent funding rounds.
  • The second principle is that all forms of capital are equally valuable. This means that those who contribute their scarce time and attention (i.e., “sweat equity”) toward producing and curating content for others are just as valuable as those who contribute their scarce cash.

Users are paid half in “Steem Power,” a token that supercharges voting power, and half with Steem Dollars, a token worth about three USD.

 

Steem scores on a number of achievements. First, it enables the creation of a community where users can share and read about what is important to them. Second, it allows for a ranking of content, where the most interesting and pressing issues appear first. This is also a byproduct of awarding users with quality posts and higher usage more Steem Power. Third, it generates revenue for the company, income for users, and more value to Steem.

 

In addition to powering the Steemit community, Steem is a platform that can be used by any company to power the development of its online communities. Additional online communities powered by the Steem blockchain are likewise tied to Steem’s tokens, and therefore those communities’ successes confer benefits to all other Steem communities because they can enhance the perceived market value of those tokens. As a result, because Steem is essentially a platform for building platforms and because those platforms all experience positive externalities as they become individually successful, Steem is inherently predisposed towards virtuous cycles of user adoption and increasing value as it gains traction.

 

Effectiveness & Competitive Landscape

Through the use of Smart Media Tokens (SMTs) and a decentralized approach, Steem has successfully distributed $40.15M in rewards to over 920.8K users of its social media application, Steemit. Besides Steem, there are a number of blockchain-based platforms that allow developers to build and deploy decentralized applications, such as Bitcoin, Ethereum and EOS. While some of these may be more established than Steem, none are as closely tied to the performance of content creation. In addition, whereas Bitcoin relies on mining to generate new currency units, the Steem network creates new tokens everyday and automatically distributes them to creators based on community voting.

 

Within the social media space, Steemit’s openness and merit-based system continues to attract users and differs from centralized, content-driven social networks, such as Facebook and YouTube, whereby censorship and lack of transparency over monetization, has been a major concern for creators and publishers. Although Reddit and Medium implement similar upvote/downvote systems and have a large built-in user base (making it easy for bloggers to be discovered), the same problem of being bound by the platform’s rules and generating value for the site versus the contributor, still exists. As such, there has been an influx of interest in cryptocurrency-backed social networks, with companies such as Synereo, Akasha and YoYow, operating within the same space as Steemit. However, Steemit has a significant incumbent advantage. Given the importance of network effects and the perceived value of a Steem token, which would have more credibility than one established by a newcomer, creators are more incentivized towards publishing quality content on Steemit over others.

 

Improvements & Suggestions

In its current form, Steem rewards those who either invest cash or make valuable contributions to the community. Doing either of these will give a user more Steem Power (SP), which in turn gives them more influence over what content is elevated to the top. In other words, it is possible to purchase power. This problem could be mitigated by Steem-powered platforms capping the influence a user can have on the visibility and popularity of user-generated content (UGC). For example, users could choose to view and sort UGC in two different ways – number of views and amount of Steem Power. This would help prevent “viral” individuals from gaining outsized amount of influence on the platform.

 

Another potential improvement that would help Steem gain traction is implementing and enforcing rules around etiquette. For example, there are currently no rules against upvoting your own content, plagiarizing content, or spamming posts or content in a single day. Once Steem gains critical mass, there will be an inevitable influx of users who abuse the system. Thus, Steem-powered platforms will need to create well-defined rules, such as encouraging surrounding acceptable behavior and flagging content for copyright violations. This can be enforced by moderators, which are common in many other UGC-based platforms.

 

Because Steem is a tool designed to accelerate adoption for platforms as well as to increase the quality of users’ contributions to them, we can see that its blockchain technology could lend itself to many of the traditional spaces that depend on network effects and user communities. Along these lines, one future application we envision for Steem is online gaming. Success in online gaming is heavily dependent on creating a sizable, engaged community of users who participate in any number of ways including creating in-game content (“mods”), broadcasting online matches on platforms like Twitch and YouTube (“streaming”), creating user communities that play together on a regular basis, and creating fan art to display passion for the game. Individual games using freemium models that are the most successful in creating these communities are able to generate revenues in excess of $100 million per month, but most struggle to gain initial user traction because of the difficulty in demonstrating that their communities are welcoming to all users and sustaining users’ interest over a long period of time. In addition, even wildly successful gaming platforms like Steam (not affiliated with Steem) have struggled to create monetary systems to reward users for their contributions. By enabling gaming platforms to reward their users by linking popularity, performance, and community interactions to influence or in-game currency, Steem can accelerate online gaming communities’ growth and incentivize more sustained, positive interaction within them. This would increase the amount of time users spend engaged with certain platforms, and the cross-platform reward system can further foster user loyalty. This could also give game developing companies another metric they can use to evaluate and refine future iterations of their games.

 

Thus, our recommendation is that in the same way that Steem has created the Steemit community as a proof of concept for developers to use in creating social media platforms, we recommend that Steem work to create a version in other complementary industries, such as online gaming.

Sources

https://steemit.com/faq.html

https://steem.io

https://www.finder.com/steem

https://www.wired.com/story/the-social-network-doling-out-millions-in-ephemeral-money/

https://www.statista.com/statistics/562397/worldwide-revenue-from-social-media/

https://steemit.com/steem/@steemrollin/steem-where-does-the-money-come-from

https://www.wired.com/story/youtube-monetization-creators-ads/

https://www.wired.com/story/decentralized-social-networks-sound-great-too-bad-theyll-never-work/

https://steemit.com/steemit/@johnnyfdk/why-i-started-posting-on-steemit-instead-of-medium-reddit-or-johnnyfd-com

https://steemit.com/steemit/@thecryptofiend/the-complete-steemit-etiquette-guide-revision-2-0

https://steemit.com/steemit/@catharcissism/4-sites-likes-steemit-to-keep-your-eye-on

https://steemit.com/blockchain/@claudiop63/any-steemit-competitor-out-there-a-layman-s-perspective

http://www.kotaku.co.uk/2015/07/09/how-valve-messed-up-paid-mods-on-steam

https://www.forbes.com/sites/davidthier/2018/03/22/report-heres-how-much-money-fortnite-battle-royale-is-making/#37036c2870ff

https://abovethelaw.com/2018/02/how-blockchain-just-may-transform-online-copyright-protection/

https://coincentral.com/what-is-steem/

https://steemit.com/steemit/@thecryptofiend/how-to-improve-steemit-my-thoughts

 

Team

Siddhant Dube

Eileen Feng

Nathan Stornetta

Tiffany Ho

Christina Xiong

 

 

Quartet Health

Opportunity

 

About 50% of the US adult population suffers from a physical condition, and a further 33% of those also have a mental illness. However, although there are people who suffer from both, it is often only the physical condition that gets treated. Studies have shown that people with physical health issues (heart failure, for example) and an untreated or undertreated behavioral health issue (such as depression or anxiety) cost 2-3x more for treatment of their physical conditions. Per 2012 data, those patients accounted for almost $300B annually in excess health care spend, mostly attributable to use of medical (as opposed to behavioral) services. Given that this is the total expected cost savings that a potential solution would provide to patients and insurance companies, we believe this is a reasonable estimate of the market size.

 

Solution

 

Quartet Health fixes this problem by bringing data-driven predictive analytics and recommendations to connect untreated or under-treated patients with physical ailments to the correct mental health providers, leading to a comprehensive treatment plan. Quartet accomplishes this by tapping into big data to identify people within a primary care system with undiagnosed or untreated mental health conditions. Quartet Health partners with insurance providers to analyze millions of insurance claims and flags patients with comorbidities or who have not been treated for behavioral health issues; it can combine results from behavioral health screenings with the patient’s data to reveal who might benefit from behavioral healthcare. It also matches those patients with local behavioral health providers who accept their insurance and who can meet both face to face and via telemedicine. Going forward, it then notifies the primary care doctor and follows up to make sure patients keep to their appointments, checks clinical results, and calculates the cost of care.

Effectiveness

 

Since hospital systems and insurers pay for Quartet’s platform, it’s free to use for patients as well as primary-care doctors and behavioral health specialists and hence using Quartet’s system lowers costs. Through partnerships with insurers and healthcare systems, health plans pay per member, and compensation is tied to quality of care and cost reduction. The shift from fee-for-service to value-based payment rewards providers for patient outcomes, compelling them to provide superior holistic treatment.

 

This also positively impacts patients’ lives because their treatment will be more comprehensive, effectively targeting both the physical and mental conditions, enabling them to live their lives more comfortably without need for return hospital visits and unnecessary expensive bills. The tool will allow doctors to proactively diagnose mental issues before they become exacerbated, leading to a) effective treatment of the mental condition and b) positive side effects in assisting the recovery of the source physical issue.

 

Competitive Landscape

 

Although the use of augmented judgment in diagnosing mental illnesses has a lot of potential, it is still in its early stages. For instance, NeuroLex is pioneering a computer model that predicts the onset of diseases, such as psychosis and schizophrenia, by collecting and analyzing patients’ speech samples for patterns (i.e. pauses in the words, use of determiners, etc.) that can be indicative of each disease. Other companies that operate in this space include New York-based AbleTo, which announced a $36.6 million raise for its behavioral health platform, U.K.-based Ieso Digital Health, which raised $24 million for a platform that offers psychological therapies and cognitive behavioral therapy, and Talkspace, which has raised $59 million to offer on-demand virtual therapy via instant messaging. Related to this are meditation platforms such as Headspace, which recently closed a $36.7 million round, while Y Combinator alum Simple Habit raised a small $2.5 million round to help the world destress.

 

To the best of our knowledge, however, the only other company taking a similar approach in using predictive analytics at scale to better align patient, provider, and insurance outcomes is Clover Health. We feel Quartet Health can compete with Clover because of its exclusive focus on behavioral health, as opposed to Clover, whose stated goal is overhauling the entire health insurance industry using big data.

 

Suggestions/Improvements

 

Quartet Health’s ability to create and extract value is tightly coupled to both the quality of its predictions and the quality of behavioral healthcare that patients receive. If they can improve their models’ precision without decreasing recall, they will identify more patients for whom they can improve care while reducing health providers’ costs. If they can improve health outcomes for identified patients, say by improving its matching to the right healthcare providers or by increasing patient compliance, this will further extend those benefits. To improve their predictions, Quartet Health should refine its algorithm by: (1) collecting more data on patients with confirmed physical and mental illnesses (so that causal patterns which would otherwise go unnoticed are identified) and (2) increase both the number of data points and types of data collected for each “potential” patient. Besides hospital records and current symptoms, studies have shown that an individual’s social media activity can predict suicidal intent or indicate mental illnesses. As such, sentiments, online behavior and notable changes in the way someone interacts with peers can be additional data points a patient can choose to provide to aid in diagnosis. The risk is that patients may feel their privacy has been compromised. To mitigate this, Quartet Health could first solicit doctor and patient approval, primarily monitor public activity, and only connect directly with the peers/friend-group of high-risk individuals.

 

Additionally, to improve patient outcomes, Quartet Health should incorporate more feedback loops so that it can provide recommendations based on what patients in the same age group and with similar conditions and medical records, found to be effective. Ways to do this include:

 

  • App-Doctor: The patient can answer questions and post daily logs on mental progress, and the application can give further instructions on what to do based on these inputs, ideally forgoing the need for a doctor in less-critical cases.
  • Patient-driven questionnaires: Have patients answer questionnaires when they are with their primary care doctors, and then use answers to immediately match patients to specific mental health professionals, drug treatments, etc. This has the added benefit of gathering data directly from patients.

 

Sources

https://www.quartethealth.com/

http://www.modernhealthcare.com/article/20171125/TRANSFORMATION03/171119895

https://www.forbes.com/sites/zinamoukheiber/2015/10/25/patrick-kennedy-backs-quartet-health-as-startups-in-mental-health-are-suddenly-hot/#127ea65b62fc

http://www.mobihealthnews.com/content/quartet-sutter-health-use-big-data-get-patients-mental-healthcare-they-need

https://www.quartethealth.com/blog/price-wrong-physical-costs-behavioral-health-issues

https://www.theatlantic.com/health/archive/2016/08/could-artificial-intelligence-improve-psychiatry/496964/

https://www.neurolex.ai/

https://www.linkedin.com/pulse/its-time-tech-put-human-touch-back-healthcare-arun-gupta/

http://www.healthcareitnews.com/news/sutter-health-quartet-health-partner-mental-health-coordination

https://venturebeat.com/2018/01/03/quartet-raises-40-million-to-bridge-the-physical-and-mental-health-care-divide/

https://www.healthcare-informatics.com/article/mobile/and-comers-2017-quartet-health-s-venture-behavioral-health

https://www.crunchbase.com/organization/talkspace

https://www.crunchbase.com/organization/clover-health

https://www.fastcompany.com/40513289/quartet-health-just-raised-40-million-to-expand-its-healthcare-platforms

https://techcrunch.com/2017/11/27/facebook-ai-suicide-prevention/

 

Team

Siddhant Dube

Eileen Feng

Nathan Stornetta

Tiffany Ho

Christina Xiong