Digital health startup Better shuts down
Palo-Alto-based digital health startup, ﻿Better, has closed down after only two years in the healthcare sector, underlining ﻿the difficulty for startups in finding the right balance between a product that consumers are willing to buy and that the industry wants to support. The startup offered subscribers help in fixing problems related to medical bills or insurance through giving them access to a group of personal health assistants.

Healthcare startup Better, a Palo-Alto based company co-founded by Geoffrey Clapp in 2013, has shut down.

The company provided free tools and access to a team of personal health assistants to help users improve their health. Through a combination of automation and live access to nurses, subscribers would receive a review of their insurance designed to cut through industry jargon and help in resolving problems with medical bills or insurance. Its investors included the Mayo Clinic’s investment arm and the Social+Capital Partnership.

Single memberships cost about $20 and family memberships cost $50.

The company stated on its website and in a series of tweets that it would shut down October 30. Clapp did not immediately return calls requesting additional comment.

(1/3) We're sad to announce that better will be shutting down on 10/30. We have been so proud to serve you and the community. — Better (@betterPHA) September 29, 2015

(2/3) If you have any questions about your membership, please contact us here or support@getbetter.com regarding exports or process — Better (@betterPHA) September 29, 2015

(3/3) We'll be posting a post-mortem and other information later this month. Right now the focus is on servicing our members through 10/30. — Better (@betterPHA) September 29, 2015

The news was received by members and supporters with sadness and disappointment.

I was a customer and big fan of @betterPHA. Sad to see them closing. I admire @geoffclapp's attempt. — Jim Brown (@jim_brown) September 30, 2015

On @betterPHA shutting down: "We made fundamental mistakes in the execution of this business" @chamath #RHSUM — Halle Tecco (@halletecco) September 29, 2015

Sad to see @betterPHA shut down. Human-powered services are hard to scale but I was hoping this one will make it. Great reco from @jason. — Monica Rogati (@mrogati) September 29, 2015

Nooooooooooo not @betterPHA – this is one of the few apps I will happily pay hundreds a year to use! So sad… — Richard David Jordan (@richarddjordan) September 29, 2015

.@chamath on health startup Better's demise: "it was like crickets chirping when we tried to raise money for this thing." #sandhill #rhsum — Christina Farr (@chrissyfarr) September 29, 2015

Prior to Better, Clapp had been the CTO and COO for Health Hero Network, a telemedicine business that has worked with the Department of Veterans Affairs and McKesson.

Better’s imminent shutdown underscores the precariousness of startups in the healthcare sector if they can’t strike a balance between a product end users are willing to pay for and that the healthcare industry is willing to support.