SharpBrains

As you have probably seen, the Cognitive Health and Brain Fitness field is rapidly evolving, so let me highlight some of the main recent developments affecting the field:

1) Public policy initiatives:
- The Government of Ontario, Canada, announced a $10m investment in Baycrest Research Center to help develop and commercialize brain fitness technologies. This $10m investment was matched with an additional $10m by local investors.
- In the US, The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 was signed into law, included in the recently-approved economic bailout bill. The passage of this law has significant implications for healthcare providers and technology vendors alike.

2) Computerized Cognitive Assessments Used by the US Military:
The US Army launched a new policy requiring cognitive screenings of all soldiers before deployment (in order to better diagnose potential problems such as PTSD and TBI upon return). ANAM was the selected computerized battery of tests.

3) Venture & Angel Fundraising for Cognitive Training companies:
A number of developers have raised money. CogniFit received $5m (from Milk Capital), Lumos Labs $3m (FirstMark Capital -previously called Pequot Ventures-, Norwest Venture Partners), Scientific Brain Training $1.5m (issued shares), Vivity Labs $1m (undisclosed angel investors), This is, of course, on top of the February $10.6 investment in Dakim (Galen Partners) that we already included in our market report.

4) Major Initiatives by Insurance Companies:
- Allstate launched a large-scale research project to measure impact of Posit Science InSight (visual processing training) on driver safety for adults over 50.
- OptumHealth announced a 3-year, $18m agreement with Brain Resource to offer web-based cognitive assessments as part of clinicians' decision support systems.
- Humana decided not to renew its agreement with Posit Science to offer Posit’s auditory processing training program to Medicare members.

5) New Research:
- In a significant new study, a team from the University of Michigan published a high-quality paper in the Proceedings of the National Academy of Sciences showing how computerized working memory training can generalize and improve fluid intelligence (one of the domains that tends to decline with age).
- Learning and Teaching Scotland released an internal study showing how Nintendo Brain Training can help children’s math and concentration skills. The study gained significant media attention, despite the fact it hasn’t been published in a respected journal.

Note: This is an excerpt from the 6-Month Market Update we will  release later this month, covering the many important developments that have occurred since we launched the inaugural Brain Fitness Market Report in March this year. This special report will be available exclusively for our Premium Research Sponsors.

Over the next weeks we are going to be sharing the Executive Summary of our market report The State of the Brain Fitness Software Market 2008 with members and clients of several partner organizations (the British Columbia Seniors Living Association, where I will be speaking this Thursday, Neurotech Reports, where I will speak on October 24th, and the Health 2.0 conference, where we are sponsoring a panel on gaming for health), so it is only fair that we first share it with our own readers.

Executive Summary

A spate of recent global news coverage on brain fitness and brain training reflects a growing interest in natural, non drug-based interventions to keep our brains sharp as we age. This interest is very timely, given an aging population, increasing prevalence of Alzheimer’s rates, and soaring health care costs in the US that place more emphasis than ever on prevention and lifestyle changes.

US brain fitness market: significant and growing

We estimate the size of the US brain fitness market was $225m in 2007 – more than double what it was in 2005. Whereas K12 school systems were the largest buyers in 2005, consumers were responsible for most of the growth from 2005 to 2007. We estimate that the consumer segment grew from a few million in 2005 to $80m in 2007, and foresee significant market growth driven not only by consumers but also by healthcare and insurance providers.

Market dynamics

As we speak to diverse audiences about this emerging field around the country we are frequently asked the following questions:

- Why are we talking about the brain fitness field at all?

Over the past decade, teams backed by neuroscientists around the world Continue Reading »

Insurance company Allstate and brain fitness software developer Posit Science just announced (see press release Protecting Pennsylvania Drivers, One Brain at a Time) a very intelligent initiative:

Video exercises aid driving skills (Chicago Tribune)

-"Allstate, which called the Posit program "potentially the next big breakthrough in automobile safety," said it expects its software exercises to reduce risky driving maneuvers by up to 40 percent and improve stopping distance by an average of 22 feet when traveling at 55 miles per hour."

-"We'll look to see whether over the next six to nine months there will be a reduction in" the number of accidents between the group participating in the video exercises and those sitting out, said Tom Warden, assistant vice president of Allstate's research and planning center.

I am fortunate to interview Tom Warden, Assistant Vice President and Leader of Allstate’s Research and Planning Center, based in Menlo Park, California.

Alvaro Fernandez: Tom, thank you for your time. Can you please explain the context behind this new initiative that you just announced?

Tom Warden: Our research center is constantly looking for new ideas to improve the driving behavior of drivers of all ages. Recently we have paid extra emphasis on ways to improve the safety of older drivers.

Let me provide some background here. Allstate, as a company, has always been one of the pioneers in helping to introduce new safety measures. For example, we were among the pioneers in the 60s to advocate for mandatory use of seating belts, given research studies on the benefits for drivers and passengers alike. More recently, we helped lobby for wider adoption of airbags, an effective but expensive way of protection that only became mainstream when manufacturers were required to include them.

Let's talk now about your agreement with Posit Science. What will happen over the next months?

The first thing we are doing is to conduct a research study to analyze the real-life impact of Posit Science InSight, a computer-based cognitive training program, on accident rates. We know that as drivers get older Continue Reading »

During the research phase before the publication of the special report Brain Fitness Centers in Seniors Housing - A Field in the Making, published by the American Seniors Housing Association (ASHA), we realized that there were equal amounts of interest and confusion among executives and professionals thinking about adding computer-based cognitive exercise products to their mix of health & wellness activities, so we included the Evaluation Checklist that follows.

The real-life experiences at leading organizations such as Senior Star Living, Belmont Village Senior Living, Erickson Retirement Communities and others were instrumental in the development of the Checklist. We hope it is useful.

Brain Fitness Programs For Seniors Housing, Healthcare and Insurance Providers: Evaluation Checklist

Over the next several years, it is likely that many seniors housing operators will begin to carefully evaluate a growing number of options to include “brain fitness centers” in their communities.

Some options will require purchasing a device, such as Nintendo products, or the Dakim touch-screen system. Others will require installing software in PCs in existing or new computer labs, such as Posit Science, Cogmed or CogniFit’s programs. Others will be fully available online, such as those offered by Lumos Labs, Happy Neuron and My Vigorous Mind. And still others may be technology-free, promising engaging combinations of interactive, group-based, activities with pen-and-paper exercises.

Creating a solid business case will help communities navigate through this growing array of options. We suggest communities consider this SharpBrains Checklist for Brain Fitness Centers:

1. Early Users: Who among our residents is ready and willing to do the program? How are they reacting to the pilot testing of the program?

2. Cognitive benefits: What are the specific benefits claimed for using this program? Under what scenario of use (how many hours/week, how many weeks)? What specific cognitive skill(s) does the program train? How will we measure progress? Continue Reading »

The American Seniors Housing Association (ASHA) has just released an Special Issue Brief, titled Brain Fitness Centers in Senior Housing - A Field in the Making. We prepared it for their members, and it is now available for purchase (You can click here for purchase and download. $25.)

It was a pleasure to learn more about emerging trends there and discuss best practices and implications with some of the pioneers at Senior Star Living, Belmont Village, Erickson, and more, who have been leading innovative initiatives and conducting their own pilot studies. I hope you enjoy the report.

This 15-page Special Report describes Continue Reading »

Here you have the twice-a-month newsletter with our most popular blog posts. Please remember that you can subscribe to receive this Newsletter by email, simply by submitting your email at the top of this page. 

First, I am pleased to report that I have been invited to participate in a new initiative by the World Economic Forum. Described as "In a global environment marked by short-term orientation and silo-thinking, Global Agenda Councils will foster interdisciplinary and long-range thinking to address the prevailing challenges on the global agenda", my specific Council will focus on the Challenges of Gerontology. More information on the Global Agenda Councils here. Will keep you updated via this blog.

In the News

Yes, It is Smart to Learn New Tricks: a recent Washington Post article presents a good overview of brain health trends, but framed around a highly artificial choice for consumers: either you a) do physical exercise, or b) take part in social interactions, or c) engage in mental exercise. What about switching off those TVs and having time for all a, b, c, and more? 

Mind Games: the August issue of Venture Capital Journal brings a very good piece on the emerging brain fitness software category (subscription required), which we enhance by providing a quick overview of the field.

CogniFit raises USD 5 million: if 2007 was the year of brain fitness media coverage, 2008 seems to be the year of serious investments. This CogniFit round follows other recent venture investments: Dakim ($10.6m), Lumos Labs ($3m). We hear all these companies are devoting part of these resources to fund clinical trials...never too late.

Brain Science and Lifelong Learning

Schools as Brain Training Hubs?: in a recent post we asked for suggestions to refine our predictions for the 2007-2015 period. A good number of readers contributed, and the winner of this informal contest is... Scott Spears, retired public schools superintendent, for his thoughts on the future implications of cognitive research on schooling.

Neurogenesis and Brain Plasticity in Adult Brains: while "adults may have a tendency to get set in their ways – I’ve been doing it this way for a long time and it works, so why change?", change itself is an excellent practice for healthy brain aging, as Laurie Bartels explains.  

A Farewell to Dementia?: a fascinating recent editorial in Archives of Neurology, titled Dementia: A Word to be Forgotten, calls for more constructive terminology. Dr. Joshua Steinerman weighs in.

Other Thought-Provoking Articles

To Think or to Blink?: should Hamlet be living with us now and reading bestsellers, he might be wondering: To Blink or not to Blink? To Think or not to Think? We are pleased to present an article by Madeleine Van Hecke, offering the "on the other hand" to Malcolm Gladwell's Blink argument. 

The impact of web 2.0 on healthcare: we hosted Medicine 2.0, a bi-weekly collection of articles that analyze the current and potential impact of web 2.0 technologies on medicine and healthcare.

Brain Teasers

Brain Teasers: Spot the Difference: how many differences can you spot (and how many cognitive functions can you engage with this simple exercise?)

I hope you are having a great August!

The August issue of Venture Capital Journal brings a very good piece on the emerging brain fitness software  (also called "neurosoftware") category: 

-- Mind Games (subscription required)

-- Dakim, Lumos Labs, Posit Science and other “brain fitness” startups are starting to gain mind share — and capital — from venture firms.

The reporter and I spoke as Lumos Labs received its $3m round, and we discussed other fundable start-ups, featuring CogniFit. Which, as mentioned over the weekend, just raised $5m.

If case you are a new SharpBrains reader, perhaps visiting us after reading this VCJ article, let me provide a quick overview of the category and our Market Report (which is annual, not quarterly as the article states):

A) Report Highlights

We estimate the size of the US brain fitness software market at $225M in 2007, up from $100m in 2005 (50% CAGR), analyzing the size and trends of four customer segments: consumers, healthcare & insurance providers, K12 school systems, and fortune 1000 companies, military, and sports teams. Two segments fueled the market growth from 2005 to 2007: consumers (grew from $5m to $80m, 300% CAGR) and healthcare & insurance providers (grew from $36m to $65m, 35% CAGR).

Ten Specific Highlights from The State of the Brain Fitness Software Market 2008 report include:

1) 2007 was a seminal year for the US Brain Fitness software market, which reached $225 million in revenues – up from an estimated $100 million in 2005.

2) Over 20 companies are offering tools to assess and train cognitive skills to four customer segments: consumers; healthcare and insurance providers; K12 school systems; and Fortune 1000 companies, the military, and sports teams.

Continue Reading »

From the website of the investing venture capital firm, Milk Capital:

Milk Capital invests USD 5 million in CogniFit

-July 31st, 2008. "Milk Capital invest USD 5M in Cognifit, a company specialized in cognitive and brain software The solutions developed by CogniFit are designed to be applied to a large number of fields, such as healthcare, driving, education, sport and many others. The field of applications is almost unlimited as it is only restricted by the capacities of the brain."

-"Since its establishment in 1999, as a start-up in the Ofer Group's Incubator, Naiot, CogniFit attracted 4.2M$. The company has grown significantly and today, its software is distributed in a large number of countries, from the United States through France to New Zealand, and has been translated into ten languages. This 5M$ investment of MILK CAPITAL should drive the development of CogniFit all the more than the company intends to conquer new markets by means of new products and applications all over the world."

Previous post on one of CogniFit's products, DriveFit: DriveFit; Brain Fitness Program for Driving. 

Other recent venture rounds in the brain fitness software space:

- February 2008: Dakim raises $10,6 million
- June 2008: Lumos Labs (Lumosity) raises $3 millions

I spoke at the MIT Club of Northern California in February to provide an overview of the fascinating landscape. The write-up: Brain Training Games: Context, Trends, Questions. 

For in-depth information on the whole category -size, customer segments, player landscape, clinical validation, trends- you may enjoy our Market Report.

As you have probably noticed, a growing number of Expert Contributors are writing in our blog, so that we can collectively discuss the latest research and trends on cognitive and brain health, and the implications of brain research in general for our everyday lives. 

If you haven't done so already, make sure to subscribe to our newsletter (above) and our RSS feed (on the right).

Below you have the profiles of some of our Contributors and links to their best articles with us so far. Enjoy!

Continue Reading »

Driving as Next Brain Fitness Application? 

Last month, at the MIT/ SmartSilvers event where we presented our Brain Fitness Market Report, we discussed what specific applications, beyond the current emphasis on healthy aging, might take computerized cognitive training to a new level.  

Assessing and improving driving skills would be a top candidate, given both the well-defined nature of the need and the appearance of programs with growing evidence (both scientific and real-world) behind.

The New York Times Asks... 

Along these lines, the New York Times just published this article: Are You a Good Driver? Here’s How to Find Out. A few quotes:

- "COULD a video game make you a better driver? More important, could computer software prevent teenagers from making fatal mistakes or even weed out older drivers whose debilities make them crash-prone?"

Continue Reading »