Welcome back to Baby Breakerdom! This week, we find venture capitalists (VCs) diving into the deep waters of Medicare reform, a slice of Tokyo here in the U.S., and quite possibly the largest multibagger we've ever witnessed here at the Fool.
Let's start with Medicare. According to the U.S. Department of Health and Human Services, the system's fee-for-service program recorded $20.8 billion in overpayments last year. It's unclear if that total is at all related to accusations of fraud facing hospital operator Tenet Healthcare (NYSE: THC ) . But $20.8 billion is still an astoundingly high number. Budding Baby Breaker HealthDataInsights believes it can be reduced. The company's software analyzes paid medical claims to identify and recover overpayments resulting from error, fraud, or abuse. And that has investors interested; VentureWire reports that HealthDataInsights received $13.2 million in its first round of funding.
Next, we turn east. Far East. Foolish colleague Nate Parmelee, a former resident of Tokyo, has sometimes regaled us with stories of how the Japanese -- especially Japanese teens -- use their cell phones as fashion accessories and gaming platforms. Privately held Blue Frog Mobile believes that experience could be replicated here on our shores and is developing custom mobile entertainment content to start the movement. VCs agree. They've handed $16 million to the firm, according to VentureWire. Will Nokia (NYSE: NOK ) and Motorola (NYSE: MOT ) pick up on the idea, too?
Finally, we have to touch on telecom rebel Skype and its $2.6 billion-plus buyout by eBay (Nasdaq: EBAY ) . There's been plenty of analysis regarding whether this deal is a winner or not for the Internet auction king. We'll know for sure in time. But we need not wait to declare Bessemer Venture Partners and fellow A round investors Draper Fisher Jurvetson, Index Ventures, and Mangrove Capital Partners huge winners from the deal. For its part, Bessemer says it made more than 100 timesits initial investment. Wow. I'm jealous, yet also strangely encouraged, since that's exactly the kind of multibagger return that we seek at Motley Fool Rule Breakers (click here for a risk-free trial). It's nice to know they're still out there.
Once again, there's nothing new to report in public offerings. But, as always, we'll keep looking. See you back here next week.
For more Rule-Breaking Foolishness:
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eBay and JetBlue are Motley Fool Stock Advisor picks.