New Research on the Region

  • March 2025
  • Case

Primetime Partners: Investing in Healthspan, Wealthspan, and Workspan

By: Rembrand Koning, Nicole Tempest Keller and Susan Wilner Golden

In the fall of 2024, Abby Miller Levy (HBS ’01), co-founder and managing partner of Primetime Partners, was preparing to raise a second fund. Founded in 2020 with veteran investor Alan Patricof, Primetime was a horizontal fund focused on early-stage companies serving older adults, the fast-growing segment of the population. There were 62 million people aged 65+ in the US, controlling the majority of net worth. This demographic shift created business opportunities centered on healthspan, wealthspan, and workspan. Primetime’s $50 million Fund 1, invested in 36 startups, many of which showed strong traction, culminating in a 15% IRR. As investor interest in the longevity market increased and competition intensified, Miller Levy faced the challenge of refining Primetime’s investment thesis to guide its new $60 million Fund II. With five new potential investments under consideration, she needed to determine what types of deals would drive the best returns.

  • January 2025
  • Case

Duolingo: On a 'Streak'

By: Jeffrey F. Rayport, Nicole Tempest Keller and Nicole Luo

In December 2024, Severin Hacker, Co-Founder and Chief Technology Officer of Duolingo, reflected on the remarkable evolution of the language-learning app he helped launch in 2011. As the #1 most downloaded education app in the world, Duolingo had over 100 million monthly active users, 8 million paid subscribers, and a market cap approaching $15 billion in late 2024. The company’s success stemmed from its gamified approach to learning, its use of adaptive AI technology, and its alignment of incentives: maintaining a streak on the app not only helped users master a language but also drove subscription growth and reduced costs for Duolingo. To date, Duolingo had focused almost exclusively on language learning with an estimated market size of $17 billion in 2020. As a technology-first company, Duolingo recognized the enormous potential of Gen AI to power innovative products, such as conversational language practice. However, Hacker envisioned an even broader future in which AI could transform the app into a comprehensive AI-powered educational ecosystem that covered many subjects beyond language, allowing the company to tap into the $56 billion ed-tech market. The company had recently started to explore this direction by adding new subjects, such as math and music. This product line diversification raised several strategic questions: Did Duolingo have the brand license to extend into adjacent subjects? Which areas were the best fit for the app’s growth, and how quickly should they roll out? And what were the long-term benefits and risks to new subjects within the flagship app?

  • January 2025
  • Case

Ontra: Embracing GenAI in the Legal Technology Industry

By: Christopher Stanton and George Gonzalez

Ontra seeks to transform from a legal services provider to an AI software company.

  • December 2024
  • Case

Core Innovation Capital: Investing in Fintech for Good

By: Ray Kluender, Natalia Rigol, Benjamin Roth and Nicole Tempest Keller

In 2017, Arjan Schütte, founder of Core Innovation Capital, faced a decision on whether to invest in Hugo Insurance, an auto insurance startup. Core, an early-stage social impact VC firm, focused on “fintech for good,” by investing in financial services for low- to middle-income consumers. Since 2010, Core had raised $120 million across two funds and backed nearly 50 companies, including Ripple Labs and NerdWallet. Core was deeply committed to measuring its social impact and had developed a written set of impact criteria that it used to annually measure impact. Hugo, founded in 2016 by David Bergendahl, developed a “pay-as-you-drive” insurance product for the $33 to $40 billion non-standard auto insurance market. By offering flexible, incremental payments, Hugo aimed to address the 13% of U.S. drivers who did not have insurance due to high upfront costs. While Schütte admired Bergendahl’s passion and early testing, he questioned Hugo’s scalability and profitability. Concerns about unproven demand, high acquisition costs, and operational complexity loomed large as Schütte deliberated whether Hugo could meet Core’s dual goals of social impact and financial success.

  • December 2024
  • Teaching Material

Core Innovation Capital: Investing in Fintech for Good (B)

By: Ray Kluender, Natalia Rigol, Benjamin Roth and Nicole Tempest Keller

In 2017, Core Innovation Capital invested $725,000 in Hugo Insurance, a pay-as-you-drive auto insurance startup targeting the non-standard market. Core followed with $300,000 in 2019 during a Seed II round. By 2022, Hugo founder, David Bergendahl, sought $10 million in Series A funding at a $30 million valuation, inviting Core to lead with a $5 million investment. Despite early promise, Hugo faced state licensure delays, high customer acquisition costs, technical issues, churn, and the loss of a key carrier partner. While Bergendahl expressed optimism about progress, Core’s managing partner, Arjan Schütte, had to weigh the firm’s stricter follow-on investment criteria against the risk of diluting ownership if Hugo succeeded.

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California Research Center Team

Allison Ciechanover
Executive Director
→ Biography
George Gonzalez
Senior Researcher
Matt Higgins
Senior Researcher
Jeffrey Huizinga
Assistant Director
Nicole Keller
Assistant Director
Don Maruyama
Research Associate