Going to work today

[StrangeGator]

Sounds pretty mundane. Most people go to work every day, but I've been a private contractor in my field since getting laid off in 2000. I've worked on site for ad agencies for weeks or months at a time, but never long enough to put up pictures of my family or have anything feel like it was my office. I've spent a lot of time at home working on projects I got from smaller firms or directly from clients. I've spend just about as much time sitting at home or Starbucks sending emails and making phone calls trying to find projects. It got old. Income was inconsistent, no benefits, no financial stability and the worst part for me, there was no interaction with a group of people I worked with day in and day out. Always loved that, especially at the better firms I worked for.

Been working with a web based health and wellness startup since last June. It was just a few hours a week at first, but it built up towards the end of the year. Did the work with the understanding that this thing could be big and successful one day. They finally put together an employee contract which includes equity. Most of my first quarter salary is deferred until the second quarter since we haven't received the seed capital to pay operating expenses, but on-site work starts today for almost the entire team. There are 10 or 11 of us, three of whom live in other parts of the country and one in Canada. Most of them are flying in to spend several weeks here. Until now it's been conference calls and Skype sessions from our space at the 1871 tech incubator on the 12th floor of the Merchandise Mart. Very cool place. We'll probably go back there after this big push is over. Check it out.

http://www.1871.com/

Today we begin working in our temporary world wide headquarters, our CEO's basement in Palatine, IL, going all the way through the weekend. We've got three weeks to get our entire biz play together along with an extensive array of presentation materials for a Venture Capital summit we'll be attending in Silicon Valley. Our beta site has been up for several weeks and we've been gathering data for "proof of concept." Our database is designed and built out, but doesn't yet extend to the cloud. Health informatics are in place. We appear to be HIPPA compliant. Once we get the money, and depending how much, we'll race to alpha stage and start testing the possible revenue streams.

Wish I could explain what it is and what it does, but I barely understand it. My primary job is to explain it to consumers and they don't have to know the technical stuff. My title is Director of Brand Management, but I'd be just as happy with a title like Warehouse Manager or Head Cashier. I'm just glad to be going to work, even if this thing doesn't make it.

[Go2gtr]

Good luck.

[LeafUF]

Congrats, hope it all works out.

[ACCecil]

Post of the day.

God bless you old man. Or young man. Or lady. I haven't a clue. Either way may God's light shine the way. This is how America gets back to work, just like this, out of some guy's world headquarters in a basement or garage, Apple was started in a garage.

Best wishes, it isn't easy starting up a company. I studied business in college and I knew I wasn't cut out for entreprenuership but I have all the respect in the world for those that do cut their own way and take a few hearty sould with them.

Reminds me of the scene in Jerry MacQuire when he leaves and asks who else wants to go with him and no oen says a word so he takes the goldfish and then at the last second the girl quits her job to take a chance on him.

So damned romantic.

Like Mexican strippers brings a tear to my eye.

[manigordo]

Good luck Strange. You express yourself so well. I am pulling for you.
How odd the world is and we who are in it.
I am grateful every day that I don't go to work!

[StrangeGator]

Post of the day.

God bless you old man. Or young man. Or lady. I haven't a clue. Either way may God's light shine the way. This is how America gets back to work, just like this, out of some guy's world headquarters in a basement or garage, Apple was started in a garage.

Best wishes, it isn't easy starting up a company. I studied business in college and I knew I wasn't cut out for entreprenuership but I have all the respect in the world for those that do cut their own way and take a few hearty sould with them.

Reminds me of the scene in Jerry MacQuire when he leaves and asks who else wants to go with him and no oen says a word so he takes the goldfish and then at the last second the girl quits her job to take a chance on him.

So damned romantic.

Like Mexican strippers brings a tear to my eye.

You guessed on the first one. I'll be 55 next week. Didn't even study business. I've been working for ad agencies my whole career. Absolutely not the entrepreneur type. I was just in the right place and friends with the right people at the right time. They needed someone with my skill set to get through the first stage. I will need to develop some new skills and learn an awful lot about this offering.

My boss is the Jerry McGuire in this thing. I'm more like the Renee Zellweger character. She's one of the most amazing people I've ever met in my life. More than anything, she makes me believe in myself. She is the American Dream, an African American woman raised by working class parents in Cleveland. They weren't educated, but they knew the value of it and pushed her hard. She graduated from Northwestern University at the age of 19, spent three or four years in successful roles in a big corporation, then returned to Evanston to get her MBA from Kellogg. She and one of our other partners led IBM's "Smarter Planet" initiative, and led a huge system migration for AT&T that included India's entire telecom infrastructure.

This venture is her attempt to make a difference. She believes that we can make significant impact on health in this country, especially with individuals with chronic health conditions. (Whatever she believes, I believe.) Our beta test is made up entirely of diabetics. The data we're getting back indicates a very high level of engagement.

Everyone of us on the team has dealt with chronic health issues, either themselves or a close family member. This is a very personal mission for each of us.

[StrangeGator]

Thanks for all the encouragement. I didn't even post this on facebook or told more than a few of my personal friends. My real friends are here.

[toon66]

Sounds great and best of luck to you. I am part of a startup that is now 13 yrs old. There were 10 employees when we cranked up. Now, there are over 100 and I am one of two originals that remain not counting the owner. It is a ton of work and requires a great deal of flexibility as well as nerves. Many, many sleepless nights. However, very few get to experience something like this and, if successful, is an amazing thing to witness and experience.

Knock 'em dead!

[swampbabe]

Good luck, Strange. Fulfilling work is the best. I wish that everyone could experience it.

[northgagator]

Post of the day.


Like Mexican strippers brings a tear to my eye.

They bring tears to my eyes too!

Good post ACC! From start to end.

[Al E Gator]

To the OP:

Wait, according to my screen, you posted this at 9:53 am today? Most people have already been at work for hours by that time! Wish I could roll in to "work" past 10 am! :D

j/k. Good luck in your new gig.

[northgagator]

12th floor?

Sounds more like the Ground Floor
I hope it takes you to the penthouse.

By the way your work location must be a short commute for you.

Good luck!

[gatorjjh]

so how is it going?

[Gator515151]

Sounds great and best of luck to you. I am part of a startup that is now 13 yrs old. There were 10 employees when we cranked up. Now, there are over 100 and I am one of two originals that remain not counting the owner. It is a ton of work and requires a great deal of flexibility as well as nerves. Many, many sleepless nights. However, very few get to experience something like this and, if successful, is an amazing thing to witness and experience.

Knock 'em dead!

You are in a good position, I would never expect this to happen but I have seen it 4 or 5 times in my lifetime. I have had friends and relatives that were part of a startup company and helped build a multi million dollar operation. Then when the owner/founder died or retired he left the company to his most loyal long time employees. My uncle got a 1/5 share of a very large corporation that way. My dad was given a lot of stock in the company he helped start, it happens.

[StrangeGator]

To the OP:

Wait, according to my screen, you posted this at 9:53 am today? Most people have already been at work for hours by that time! Wish I could roll in to "work" past 10 am! :D

j/k. Good luck in your new gig.

The CEO was in Silicon Valley the day before and came back on the red eye. We were told not to show up until 10 or 11. We didn't finish until seven last night. I'm back there today and will be back tomorrow, even though this is my twins' last weekend before they return to college. We'll be working 60-80 hours a week from now until the venture capital summit.

[toon66]

You are in a good position, I would never expect this to happen but I have seen it 4 or 5 times in my lifetime. I have had friends and relatives that were part of a startup company and helped build a multi million dollar operation. Then when the owner/founder died or retired he left the company to his most loyal long time employees. My uncle got a 1/5 share of a very large corporation that way. My dad was given a lot of stock in the company he helped start, it happens.

I hope so but it sounds like Strange may be as well.

[toon66]

The CEO was in Silicon Valley the day before and came back on the red eye. We were told not to show up until 10 or 11. We didn't finish until seven last night. I'm back there today and will be back tomorrow, even though this is my twins' last weekend before they return to college. We'll be working 60-80 hours a week from now until the venture capital summit.

There you have it. Eat well and take the time to exercise. I didn't do those things at the onset and I paid for it as a result.

[StrangeGator]

You are in a good position, I would never expect this to happen but I have seen it 4 or 5 times in my lifetime. I have had friends and relatives that were part of a startup company and helped build a multi million dollar operation. Then when the owner/founder died or retired he left the company to his most loyal long time employees. My uncle got a 1/5 share of a very large corporation that way. My dad was given a lot of stock in the company he helped start, it happens.

I already have a little bit of equity. Will be interesting to see what it's worth in five years. We either make it big in that time frame, or we're gone because somebody else did what we're doing and got to market faster.

[Juggernautz]

nm. :borg:

[azipper]

I wish you all the best in your new place. Like you, I just got started in a new venture and it is an exciting and stressful time.

[StrangeGator]

so how is it going?

It's going well, I think. We've created some buzz in the venture capital community, at least the part that specializes in health technology. We have to follow up with a business plan that justifies our first round of funding, five to seven million. That's what we're working on now. Just finished a team building exercise. Very psyched right now.

[el_lagarto]

Wish I could explain what it is and what it does, but I barely understand it.

you should practice.

[StrangeGator]

you should practice.

I'm not taking part in the big presentation, but I wrote the application/proposal for the VC conference. I'm also crafting the "elevator speech" but it changes almost every day. We just added a new team member; Director of Product Development. She's got a lot of new ideas and new thinking to assimilate. In the mean time, I'm getting a crash course in data and cloud technology, health informatics, smart device technology and legislative initiatives surrounding health care.

[StrangeGator]

The current distillation of the enterprise goes something like this…

We combine data collection and business intelligence to engage patients in proactive self-care. Mobile devices allow users to transmit relevant health status data, such as diet, exercise, hours of sleep, etc. and receive constant feedback urging ideal health choices. Doctors are able to monitor patient status in real time using customized dashboards.

[LeafUF]

Sounds like a slightly more advanced fitbit or jawbone up.

[StrangeGator]

Sounds like a slightly more advanced fitbit or jawbone up.

Actually an extension of one or the other, probably fitbit. We're currently working with the fitbit API and talking with their organization about a strategic partnership. We're also talking to the private equity firm that is funding them.

In addition to the fitbit functionality will be applications specific to chronic illnesses like diabetes, colitis, heart disease, asthma, etc. That's when the feedback functions become more valuable as well as the connection to the patient health record and physician. A piece of data could be a warning sign and the provider dashboard will be equipped to alert doctor and possibly family caregivers. We do have some social networking functions built in.

It's pretty scalable. We're only asking for five to seven million dollars for the first round. It's conceivable that we could get to critical mass with only one more round of funding. Eventually the accumulated data will be our most valuable asset and the pharma industry our richest revenue stream.

[vaxcardinal]

until an unauthorized person gets access to the data...then it all comes crashing down

[StrangeGator]

until an unauthorized person gets access to the data...then it all comes crashing down

We've got two or three security experts on the team, at least one of them with HIPPA compliance expertise. I'll bring that issue up the next time I talk to our CTO, but that particular threat hasn't come up in any discussions so far.

[StrangeGator]

Our application to the Venture Capital Summit in San Jose has been accepted. We need to throw down some quick presentations to local VCs, mainly the people who back 1871, the tech incubator where we got started. It's going to look bad if we started up there but ended up getting our series a funding from the west coast. Pritzker has to pony up or shut up.

http://thenextweb.com/insider/2012/06/05/meet-1871-chicagos-enormous-new-coworking-event-and-startup-space/

[LeafUF]

http://greatist.com/fitness/important-health-trends-watch-2013/

#2 on this list seems to be in your favor if it comes true.

This year will see some changes: a greater use of apps to track personal health and fitness, especially innovation in mobile technology as related to hand-held or near-hand-held diagnostic equipment.

[StrangeGator]

http://greatist.com/fitness/important-health-trends-watch-2013/

#2 on this list seems to be in your favor if it comes true.

We're going to be big on #8 too, early disease detection. A friend of mine is a Neurologist who wants to meet with us to discuss some functionality regarding detection of things like MS, ALS and Alzheimer's two or three years before they become symptomatic.

My favorite on the list is #1, Breathing Big. I learned to focus on that years ago in martial arts, so it was natural to me when I started lifting.

Great article. I'm going to share this with the rest of the team. Thanks for sharing it.

[LeafUF]

We're going to be big on #8 too, early disease detection. A friend of mine is a Neurologist who wants to meet with us to discuss some functionality regarding functionality that would detect things like MS, ALS and Alzheimer's two or three years before they become symptomatic.

My favorite on the list is #1, Breathing Big. I learned to focus on that years ago in martial arts, so it was natural to me when I started lifting.

Great article. I'm going to share this with the rest of the team. Thanks for sharing it.

Seemed appropriate to what you are working on as well as many other conversations we have had around here. I have been reading about #1 a lot lately and have been trying to incorporate it into my training a little bit better. But as silly as it sounds I really feel like I could use a coach for it. Something more than a youtube video to go off of anyway.

[StrangeGator]

FYI, our CTO and his team just finished integrating every one of the Fitbit devices with our platform. We're going to be able to do a complete demo at the Venture Capital Summit next month.

BTW, it's in Mountain View, not San Jose. Not that it matters since I'm not going. I do get to go to the HIMMS (Healthcare Information Management Systems Society) Conference in New Orleans in March. Alone no less. As I understand it, most of the HIMMS vendor/client/member universe is female. That can't be a bad thing. Anybody see the movie Cedar Rapids.

My wife used to work for them and is still a member. I wonder if I can register under an assumed name.

[UF_HOSS]

keep us informed.....and good luck to you going forward!

[StrangeGator]

Seemed appropriate to what you are working on as well as many other conversations we have had around here. I have been reading about #1 a lot lately and have been trying to incorporate it into my training a little bit better. But as silly as it sounds I really feel like I could use a coach for it. Something more than a youtube video to go off of anyway.

Take a Zen meditation class, or a beginning Judo or Aikido class. We spend time laying on our back and letting our partner put their hand on our diaphragm and feeling us breath, in through the nose, out through the mouth and nose. Just lay flat and practice by yourself. Push your belly out when you breath in and pull it tight when you exhale.

[g8rchica]

Good luck!

[StrangeGator]

Good luck!

With the startup, or at the HIMMS conference? I might have to keep that confidential.

Seriously, I think we'll get something, but not the ten million we're now asking for. We could get to the point of producing our own revenue within two years with only four million, but we would have to create some revenue sharing alliances along the way. On the other hand, anyone who gives us ten mill will want a lot of control and will want a quick return. Personally, I just want some job security. Becoming a multi millionaire in five years is something I spend very little time dwelling on. My CEO thinks it's a sure thing. More power to her. The potential returns for society at large are huge. That's where I put my energy. We can change the entire healthcare landscape, making it work better for everyone. That along makes it worth working eighty hours a week.

[StrangeGator]

Still struggling to help people understand this enterprise. Last night, l explained it to my buddy Will at the beer, wine and cheese store (refer to beer thread) and he said, "So it's like Rhapsody for your health." I think that nails it.

[StrangeGator]

Had our first presentation to a VC group, New World Ventures, part of the Pritzker Group. It was more of a political play than anything. Kevin Willer and JB Pritzker are the big backers behind 1871, an effort to compete with the Silicon Valley and build a stronger tech center in Chicago and the midwest. Fascinating meeting. I didn't get to say much, just introduce myself and my role in the venture, and then push the start button on the 90 second animation I created that lays out the benefit proposition for the enterprise. From that point on, it was a high stakes poker game and I was just a fly on the wall. I think we got this guy off his balance a little, asking for $10 million without having any revenue coming in at all. He started off telling us we'd be better off getting two or three million a piece from multiple firms. When he finished debating and asking questions about how we get around a number of obstacles, he wished us good luck going out went and was very honest about Silicon Valley VCs being much more generous and less risk averse. They're also hungry for big data operations, which is the sector we'er in. He then said that maybe his firm was open to coming in with a smaller stake. Our CEO asked him how much smaller. He said $7 million. She said "No thank you." I almost fell out of my chair. Then again, I'm not very good at poker.

[sec1]

good luck brother ....

[gatorjjh]

Had our first presentation to a VC group, New World Ventures, part of the Pritzker Group. It was more of a political play than anything. Kevin Willer and JC Pritzker are the big backers behind 1871, an effort to compete with the Silicon Valley and build a stronger tech center in Chicago and the midwest. Fascinating meeting. I didn't get to say much, just introduce myself and my role in the venture, and then push the start button on the 90 second animation I created that lays out the benefit proposition for the enterprise. From that point on, it was a high stakes poker game and I was just a fly on the wall. I think we got this guy off his balance a little, asking for $10 million without having any revenue coming in at all. He started off telling us we'd be better off getting two or three million a piece from multiple firms. When he finished debating and asking questions about how we get around a number of obstacles, he wished us good luck going out went and was very honest about Silicon Valley VCs being much more generous and less risk averse. They're also hungry for big data operations, which is the sector we'er in. He then said that maybe his firm was open to coming in with a smaller stake. Our CEO asked him how much smaller. He said $7 million. She said "No thank you." I almost fell out of my chair. Then again, I'm not very good at poker.

My bet is your CEO is anticipating a 10 mil call from the $$ man in the next 2 weeks

[Al E Gator]

Had our first presentation to a VC group, New World Ventures, part of the Pritzker Group. It was more of a political play than anything. Kevin Willer and JC Pritzker are the big backers behind 1871, an effort to compete with the Silicon Valley and build a stronger tech center in Chicago and the midwest. Fascinating meeting. I didn't get to say much, just introduce myself and my role in the venture, and then push the start button on the 90 second animation I created that lays out the benefit proposition for the enterprise. From that point on, it was a high stakes poker game and I was just a fly on the wall. I think we got this guy off his balance a little, asking for $10 million without having any revenue coming in at all. He started off telling us we'd be better off getting two or three million a piece from multiple firms. When he finished debating and asking questions about how we get around a number of obstacles, he wished us good luck going out went and was very honest about Silicon Valley VCs being much more generous and less risk averse. They're also hungry for big data operations, which is the sector we'er in. He then said that maybe his firm was open to coming in with a smaller stake. Our CEO asked him how much smaller. He said $7 million. She said "No thank you." I almost fell out of my chair. Then again, I'm not very good at poker.


So your CEO turned down $7 million on the spot just like that? She better hope her last dollar there are people lining up for her great idea and she's not wasting yours and everyone else's time and effort. :rolleyes:

[gatorjjh]

.

[northgagator]

So your CEO turned down $7 million on the spot just like that? She better hope her last dollar there are people lining up for her great idea and she's not wasting yours and everyone else's time and effort. :rolleyes:

Nothing to worry about. Deals like this are a poker game. The risk of getting skunked now are zero. Why? The $10 and $7 million were just the opening bids. I am sure that there will be some counter offers. Also word will get out and other competing offers will come in.

[gatorjjh]

Nothing to worry about. Deals like this are a poker game. The risk of getting skunked now are zero. Why? The $10 and $7 million were just the opening bids. I am sure that there will be some counter offers. Also word will get out and other competing offers will come in.

spot on, they simply set some parameters :)

[StrangeGator]

Nothing to worry about. Deals like this are a poker game. The risk of getting skunked now are zero. Why? The $10 and $7 million were just the opening bids. I am sure that there will be some counter offers. Also word will get out and other competing offers will come in.

Apparently that's how it works. They want to create interest across the landscape. A few of you know this game better than I do. This is very new to me. The part that I do understand and that concerns me a little, is the kind of control you give up if one firm comes through with the entire $10 mil. We'd get better terms if three different firms combine for that amount. I don't think we want any more than that. There's not a legitimate path to revenue that justifies more than that. It's one of those things that will find it's own growth progression. Since it's scalable, there's no sense building out right now what we won't need for five more years.

The play now is to pit Silicon Valley against the Chicago market. Chicago VCs will be embarrassed if we get all our money out there, especially if the operation moves out there. We got started in a Chicago funded incubator. I sincerely hope we stay in Chicago no matter where we get our money, somewhat out of loyalty, but also because this is my home. I've seen housing prices in Silicon Valley, ugly little three bedroom ranches going for $900k. Love the Bay area, but I'm too old and cranky for that kind of commute.

Of course this thing still has a very good chance of falling apart. Or it could blow up and some VC firm's appointed board decides to replace half the founders with their own "experts." I'm just going to enjoy the ride for the moment. It's been quite an education.

[StrangeGator]

We just got invited to pitch to another Chicago VC firm Thursday. It came totally out of the blue. My guess is that there are no secrets in a tech incubator and somebody wants to catch us before the team heads out to California this weekend. They will be there for most of the week. The first pitch is on a big stage in front of every private equity player in the region. The subsequent meetings will be with individual firms who show interest.

FWIW, the last quarter of 2012 was the biggest in history for health technology startups, more than the previous two years combined. The other hot startup category is "Big Data." We fit squarely into that world as well. Two weeks ago, a big data startup got $50 M for their A series funding. In Silicon Valley of course. From what we're hearing, the only way you could get that kind of money in the midwest is if you revolutionized the tractor.

[StrangeGator]

Things are moving along, but more in the area of producing some significant revenue without an A Series VC investment. There's a large association of independent group health and group life brokers who represent almost 200 firms and over 15 million individual policy holders who are interested in what we're doing. That's exciting, but no VC funding means minimal salary until the hypothetical deal comes to life. I'd rather have a great VC partner, like New World Ventures, along with a really smart partner/advisor. I'm tired of working for peanuts.

FWIW, this is the animated pitch to investors and strategic partners. I made this with a good friend and colleague from Florida. It's quick summary of our value proposition.

http://vimeo.com/59990064