Late last week, one fo the Health 2.0 darlings, DailyStrength, bit the dust and was acquired by HSW Inc. Was never a big fan of DailyStrength, thought their model was just another “me-too” social network with little idea as to how to actually generate revenue. Their partnership with Revolution Health may have been a harbinger of the eventual collapse of DailyStrength.
So who the h*ll is HSW. Looking at their website, they seem to be focused on the Chinese and Brazilian markets with broad, horizontal information plays – actually just re-purposing their enlish language website HowStuffWorks. How DailyStrength plays into these existing properties or their overarching strategy is not readily apparent, unless of course they got DailyStrength for nothing, which is probably the case as there was a rumor at Health 2.0 in October that they were on their last legs.
This will be but one of many acquisitions or tent-foldings of the far too many Health 2.0 start-ups in the market today. Those that make it through the next 12 months will clearly demonstrate that they are delivering value. In essence, something that someone, somewhere is willing to pay hard cash for.
Enough of the sending of virtual hugs. Time to get down to business and start figuring out how you, Mr. or Mrs. Health 2.0 can start delivering that value proposition as this morning’s WSJ reported that several VC firms are seeing their investors are defaulting on capital calls so you will increasingly be left to your own devices to get that operating capital.
And getting back to the title of this post…
No, this is not the end of Health 2.0 as a broad movement in consumer health trends, but it will be the end of the line for many Health 2.0 companies.