Clint Phillips, CEO of Medi.ci – Curing Health+Care, an end-to-end virtual care medical platform, is no stranger to dealing with the unexpected. 

In 2009, when his two-day-old daughter Gabi suffered a stroke that paralyzed the right side of her body, the need to provide her with adequate care led him to found 2nd.MD, which recently sold to Accolade for $460M. 2nd.MD, which helped thousands of people gain access to high-quality second opinions, set Phillips on the path of healthcare reform. So, when the pandemic hit, and his new venture Medi.ci came up against challenges, he was ready to adapt. He will provide those experiences at a Founders Network keynote talk on December 15. Register with Founders Network to know if you qualify for full time membership.

To learn more about how to deal with the unexpected in your startup, see if you qualify for membership and check out the webinar from December 15. 

In his webinar, Phillips covered:

• How to examine your company’s vision with objectivity
• Ways to approach investor relationships during a pivot
• What Elon Musk said about failure and how it can help you
• How to cultivate a flexible founder mindset

“We had to take a hard look in the mirror. We had not raised all that money around changing healthcare to be a little niche product in a doctor's office. We had to do something meaningful that we could be proud of.” - @HBD_Clinics
Share on X

A pandemic pivot

Medi.ci was planned as a SaaS business, with medical practices simply buying the platform and using it without oversight. But as a result of COVID-19, practitioners shifted to medical care via video, and telemedicine laws changed to facilitate new needs. Phillips watched as entities like Zoom and low-budget apps captured a large amount of the market share. He felt he needed to do more than offer doctors a software platform. He wanted to model the perfect medical practice, helping the staff and patients fully maximize its benefits.

“We had to take a hard look in the mirror. We had not raised all that money around changing healthcare to be a little niche product in a doctor’s office. We had to do something meaningful that we could be proud of,” he says. 

To do this, the company required a much larger vision, what Phillips calls “a major pivot.” They had to go back to shareholders and admit that some of their assumptions had been wrong, and that to affect change, they would need to own the value chain, to hire primary care doctors and specialists, train them and build a vertically integrated model.

“We were going from being the WhatsApp of healthcare to being the Mayo clinic of healthcare,” he says. 

“We had the first few people call us. Nobody had ever called us. We had banged on every door, but then customers began asking us to solve their problems. It's not a future guarantee, but it feels good.” - @HBD_Clinics
Share on X

The challenges of change

As exciting as this felt, Phillips describes a humbling process: “We had funding; we had the team, but we were all wrong. I had to lose credibility with some investors who felt we were changing our tune.” The change also meant that half of the employees were no longer needed, including the sales team hired to sell the platform to medical practices. Although those individuals were able to get other work quickly, Phillips says laying them off was not easy.

Still, the team trusted their instincts. It helped that Phillips had experiences at other companies with investors who initially doubted a direction, but were pleased with the long-term success. “One day they got a check and were like: “Oh, you’re a genius,” Phillips recalls. 

“So, you spent $20 million on the wrong platform. It’s unpleasant, but it's behind you now. You can't beat yourself up every day. Now, you have to go forward.” - @HBD_Clinics
Share on X

Feeling the wind in your sails

With time, the difficult move began to pay off, says Phillips, and Medi.ci began to “feel a little wind in our sails.” 

“All of a sudden, we had the first few people call us. Nobody had ever called us. We had banged on every door, but then customers began asking us to solve their problems. It’s not a future guarantee, but it feels good.”

Phillips recommends the book Getting to Plan B: Breaking Through to a Better Business Model to other founders dealing with a similar fork in the road. Its main thesis is that flexibility is key for a founder and that “you’re increasingly likely to find your right model when you aren’t as bullheaded around your original idea.” He notes that it is natural for founders to want to stick to their original idea, but that humility is crucial, recalling that Elon Musk famously said that there was a 50% chance that Tesla would fail. 

Today, Phillips advises other founders to allow their perspectives to change. He tells of some expert advice he received from one highly successful investor. “So, you spent $20 million on the wrong platform. It’s unpleasant, but it’s behind you now. You can’t beat yourself up every day. Now, you have to go forward.”

To learn more about how how to deal with the unexpected in your startup, see if you qualify for membership and check out the webinar from December 15. 

Cybersecurity expert Alon Arvatz has long anticipated threats before they happen, but as Co-founder of threat intelligence platform, IntSights, he has also learned to look to the past.  

“People often talk to founders about the importance of pivoting, of doing something different in response to market changes, but sometimes you just need to get back to your roots,” he says. 

IntSights was recently acquired by Rapid7 for $335M, taking its place as a highly successful player in the fast-growing cybersecurity market. But, according to Arvatz, who is now Senior Director of Product Management at Rapid7, there was a time when the company temporarily lost its way. In his role leading strategy, Arvatz helped realign the company with its original mission. At a Founders Network keynote presentation on January 18, Arvatz provided his advice about how to use the past to help steer your team to a successful future.

“People often talk to founders about the importance of pivoting, of doing something different in response to market changes, but sometimes you just need to get back to your roots.” - @IntSights
Share on X

Democratizing threat intelligence

In 2014, Arvatz and his Co-Founder Guy Nizan, who trained together in an elite Israel Defense Forces intelligence unit, decided to help small and mid-sized companies upgrade their cybersecurity efforts.

 

To learn more about how to use the past to help steer your team to a successful future, see if you qualify for membership and check out the webinar from January 18.

“Companies need to do more than secure their own environment. They also need to look at ‘enemy territory,’ to understand what threats bad actors are planning. Based on that, we can also prevent attacks before they happen,” he explains. 

Arvatz says that while large enterprises have the resources to employ 5-20 team members to spend all day logging on to hacker forums on the dark web, scanning social media and searching through data sharing platforms and phishing repositories, SMEs just can’t afford that. Even when smaller companies succeed at identifying a threat, they often fall behind trying to neutralize it. “If it’s late, it is not intelligence,” says Arvatz, quoting one of his mottos.

IntSights leverages technology like automated scraping of data from the web, AI and NLP to analyze data and isolate only the threats that are relevant to customers. The team also developed software to automatically neutralize that threat, such as contacting Facebook to remove a fake social media profile or deleting data from a phishing website. Aiming at companies with small security teams, the IntSights platform was purposefully designed to be simple, with zero configuration.

“Without fully understanding what we were doing, we built a platform that would allow organizations of any size to leverage threat intelligence, which is something that didn’t exist before. We sought to democratize threat intelligence, so any company could benefit, not only giants like Citibank and Bank of America,” Arvatz says.

“Without fully understanding what we were doing, we built a platform that would allow organizations of any size to leverage threat intelligence, which is something that didn't exist before.” - @IntSights
Share on X

Why bigger isn’t always better

As IntSights grew, it began to market itself to bigger companies – despite the original plan to serve mostly mid-sized clients. “Everyone said: ‘The big contracts are with the biggest enterprises. You need to aim higher,’ so that’s where we took the company,” Arvatz recalls.

Problems soon began to emerge, from released features that were not impactful enough for existing customers to a misalignment between product, sales and marketing. Soon, there was noticeable “friction” between the sales and product teams. 

Feeling that a significant change was necessary, Arvatz consulted with a member of the board directors as well as an industry expert, before deciding to take bold action. “Sometimes, you just need to trust yourself. We realized that we needed to go back to our origins and focus on mid-sized enterprises because they’re really the ones who need us and can best benefit from our technology,” he says. 

The fact that those companies represent a bigger portion of the market, with some eventually set to become tomorrow’s large companies, added to the decision. IntSights is also furthering its expertise aimed at specific sectors, an area of growth that fits well with their original mission.

“Sometimes, you just need to trust yourself. We realized that we needed to go back to our origins and focus on mid-sized enterprises because they're really the ones who need us and can best benefit from our technology.” - @IntSights
Share on X

Finding your way home

Having helped his company right its course, Arvatz is often asked to help other founders reconsider their approaches to strategy. He recommends renewed belief in your own thoughts, humility and a willingness to consult with outside experts, when necessary.

“At the end of the day, you know your company best. You took the company this far. Trust that with your own common sense, you can take it further,” he says.

Ongoing communication with the whole team is also crucial, especially when realigning  product and marketing teams. “Get input from everyone that’s going to be affected and create iterations. At every step, keep them in the loop, And if you do that, you ensure that once the product is out, everyone is on the same page and running in the same direction.”

Today, as he continues to work with his team to identify their ideal customers, he is struck by the path they’ve traveled.

“When you start something, you look at the market, see pain points and make the decision to help your customers by solving a problem. Sometimes, you can do a whole market analysis and try to rebuild your DNA, only to realize the same things you knew at the beginning.”

Register with Founders Network to know if you qualify for full time membership and learn:

• Why SMEs may represent the future of threat intelligence
• What all companies can learn from the cybersecurity market
• How to handle friction between product and marketing teams
• When and how to trust your founder instincts 

To learn more about how to use the past to help steer your team to a successful future, see if you qualify for membership and check out the webinar from January 18.

Moderator:

Pete Crawford

Pete is a 7-year cannabis industry veteran as VP of Supply Chain, VP of Professional Services, and CEO. He is a named inventor on two cannabis industry device patents, and has held multiple technology company leadership roles prior to his cannabis journey. Bend Oregon resident, father, husband, traveler, live music lover, and SaaS enthusiast.

His early experience at Solidcore, which was later acquired by McAfee, set the stage for his management approach. He learned how a large company determines their ideal customer profile and launches new products. So, when he took on a leadership role at Demisto, he was clear about the importance of defining a product and matching it with customer needs to convert leads. 

However, Bhargava says he encountered a challenge familiar to startups – how to align the product management and marketing/sales teams. “In many companies, product teams are building a product that is for one type of audience, while the sales and marketing messages aim at a completely different one. The teams usually meet once a week, or once in two weeks, and there is little alignment,” Bhargava says. 

“The positive with transparency is that even if people do not agree with the decision, they understand the reasoning behind it.” - @rishi_bhargava
Share on X

Creating a culture of collaboration

To avoid this, Bhargava took a fresh approach at Demisto. As the marketing leader, he took part in every product decision and acted as a ‘bridge’ between the two teams. “I was able to understand the direction of the product and implement the right things on the go-to-market side. I could also convey customer feedback to the product team, to make quick, accurate product decisions,” he explains. 

The teams, not just their managers, were also encouraged to communicate openly. “ If anyone had a question about the marketing theme or the direction of the product, they could just ask. So, it was a very, very collaborative culture that way,” he says. 

This led to what Bhargava calls a culture of course-correcting, an ongoing process of reassessment that prevented the need for any major company pivots. “We had the sales guys write a field report back to the product teams on a regular basis, saying what the customer liked and how the product failed. We never curbed any opinions. We welcomed them and even shut down some features based on that feedback.” 

“Scaling is about discipline without slowing down. Sometimes, when you put in too much structure, you slow down.” - @rishi_bhargava
Share on X

Confronting the challenges of scaling

Transparency came with its own challenges, especially as the company grew and moved from open discussion to practical decisions. Bhargava says that Demisto handled the problem by creating a culture of never looking backward. Everyone was free to share their opinion, but relevant leads carried the day. 

“We debated very vigorously; but at the same time, once we committed, there was no more looking back. The positive with transparency is that even if people do not agree with the decision, they understand the reasoning behind it,” he explains. 

Scaling required further planning. He explains: When you hire five new sales engineers, you need to make sure they’re doing the same thing. And if one of them isn’t, how can you bring them back to task?

“Scaling is about discipline without slowing down. Sometimes, when ou put in too much structure, you slow down. I think you need to strike the right balance between planning and still keeping the agility.”

“If two people have never done kayaking before, they usually go in circles because they’re not aligned. If you align them, they start to go in a straight line and at a fast pace.” - @rishi_bhargava
Share on X

Alignment: From kayaks to companies

Ultimately, Bhargava was able to lead his team to success by keeping them focused on serving customers. At every stage he would ask: What would the customer want? How do we engage with our customers? What value can we give to customers without trying to sell them anything? He shared those questions with his teams, and encouraged them to work on answers together. 

He likens his management philosophy to navigating a kayak with another person. “If two people have never done kayaking before, they usually go in circles because they’re not aligned. If you align them, they start to go in a straight line and at a fast pace.”

fnSummit, taking place from October 13-15, 2021, is an annual event where founders, investors and partners come together to explore the theme of growth. Located in a beautiful resort in California’s Carmel Valley, the event will offer participants a chance to network, share ideas and enjoy a variety of recreational and team-building activities. 

“In my experience, most startup founders that learn from their mistakes end up succeeding. It may not be a multi-billion-dollar success, but they end up building something of real value and in that sense succeeding,” he says. 

Breakstone presented a keynote speech at fnSummit 2021, in which he’ll detail seven lessons for founders. He’ll tell personal stories and offer advice on topics such as the importance of choosing the right co-founders, knowing market size, building your team and pushing for speed to market.

“As a founder, you’re selling the future. You're selling a vision.” - @MichaBreakstone
Share on X

Create perceived momentum

According to Breakstone, being the fastest at getting a product to market is critical, but that’s just the start. A company must also create the sense that they’re moving even quicker than they are, a concept he calls “perceived momentum.”

“As a founder, you’re selling the future. You’re selling a vision. Your company is getting a valuation of $50 million before you have earned a cent because people believe that you understand something about the future that they don’t yet, and that you can get them there,” he explains. Perceived momentum can be generated by hiring people or appointing board members who are stars in their field. “If you have 10 people on your development team and four are out of Google, you’re already looking bigger than you are,” he says. Breakstone also suggests that founders publish thought pieces that position themselves as leaders and that they invest in a compelling design language. 

“Another trick to build momentum is to space out your company announcements. If you have made five advancements quickly, announce them over a few weeks, so that you create the sense that you are continuously moving forward,” he suggests.

However, Breakstone cautions not to create a false sense of reality. Honesty and authenticity are key. “You don’t have to have all the answers. You just have to convey the confidence that you are moving quickly to find the right answers,” he says.

“You're selling a dream, so it better be a dream that is worthwhile. I think it's important to be motivated from a deep place. If it's only for money, it's going to be hard to maintain over time.” - @MichaBreakstone
Share on X

Believe in your mission

Creating a buzz only works if you believe in what you are creating. He explains: “You’re selling a dream, so it better be a dream that is worthwhile. I think it’s important to be motivated from a deep place. If it’s only for money, it’s going to be hard to maintain over time.”

Breakstone will share some of his own experiences with finding a sense of mission, detailing how the objectives of a company may change over time, but the mission and vision can be maintained, anchoring decisions in deeply considered company values.

”At the end of the day, getting employees, investors, and customers to follow you is so much easier if (a) you have a deep and compelling vision of the world, and (b) you actually believe in it.”

“You can scare people into working hard. You can try to ‘buy’ people into working hard, but one thing you can’t do is buy their hearts and souls.” - @MichaBreakstone
Share on X

Put people before product

Of all the lessons he presents, Breakstone is most passionate about the need to treat people – the team, clients and co-founders — with respect. Aside from it being the right thing to do, he also adds that he believes it is a predictor of success. 

“I’ve worked with over 200 companies in the last three years, and I can tell you that people who take care of others succeed more than those who don’t.” 

He cites a Google study that found that “psychological safety,” a state in which people feel comfortable being vulnerable and empowering others, was the number one predictor of a successful team. 

“You can scare people into working hard. You can try to ‘buy’ people into working hard, but one thing you can’t do is buy their hearts and souls. The only way to truly motivate them is by treating them well, treating them as partners in your journey.” 

Check out our video from the event and see if you qualify for membership to attend upcoming Founders Network events.

fnSummit, taking place from October 13-15, 2021, is an annual event where founders, investors and partners come together to explore the theme of growth. Located in a beautiful resort in California’s Carmel Valley, the event offer participants a chance to network, share ideas and enjoy a variety of recreational and team-building activities.

He spent ten years with Accenture before moving to Miami and becoming an entrepreneur in 2004. His first venture was Livin’ Interactive, which focused on custom experiential marketing solutions. It was that fervor for technology and education that fueled his desire to empower teachers and engage students with a mobile platform that led to the creation of Nearpod in 2012. In 2019, Nearpod acquired Flocabulary, an educational content company that delivers its lessons through hip hop. 

“We saw explosive growth in student users this past year, reaching a total of 1.8 million new students and partnering with 161 new school districts since the start of the 2018-2019 school year alone.” - @felipenearpod
Share on X

In early 2020, when schools around the United States and around the world were forced to close amid a worldwide Pandemic, Nearpod was essential in getting teachers and students alike through this unprecedented time by offering free access to schools impacted by the Coronavirus Pandemic, and they were honored to do so. Through Nearpod, teachers were able to offer students a remote learning experience through video, quizzes and even digital field trips. It had all the makings of a company to stay with.

To learn more about exit strategies, see if you qualify for membership and check out the webinar from August 18.

However, Nearpod was recently acquired for $650 million by Renaissance Learning, a Wisconsin based K-12 software company, in what Sommer calls an “interesting transaction.” For his speaking engagement, Sommer will be here to talk about his exit strategy and share tips on handing over a company you’ve created to someone else, especially amid a global pandemic when your product is in high demand. In 2020 alone, Nearpod grew by 50%. It’s used in all 50 states and in nearly 2000 school districts with 1 million teachers using the product and 2-3 million students accessing it daily.

“We saw the company doing really, really well, we felt it was also a personal decision. We were ready to move on and close this chapter at a good moment.” - @felipenearpod
Share on X

“It is important to understand where you are as a company,” Sommer says about his exit strategy. For Sommer and his team, they wanted a full exit and wanted Nearpod in the hands of a company who could take the platform to the next level and having a partner on the investment side is key to a good exit. “It would be a mistake to go into an exit without advice from a professional,” says Sommer. With that said, there is an element of going with your gut that Sommer  used as well. “We saw the company doing really, really well,” he says, “we felt it was also a personal decision. We were ready to move on and close this chapter at a good moment.”

None of it could have been done without Sommer’s team, however. “No one has a company without a strong team,” Sommer says and his team was integral in all parts of the transition process. A team is what a potential buyer evaluates and without a strong team, the potential buyer will want out. Over the years, Nearpod built a very interesting team that grew the company significantly. 

“Of course, this pandemic was a huge push for us, but we were in the right place with the right technology. The company and the product is super strong. I look forward to seeing what Renaissance is going to do.” - @felipenearpod
Share on X

After a well deserved break, Sommer plans to start his next endeavor in the impact space while becoming even more involved in the thriving Miami entrepreneur scene.

For more from Felipe Sommer on entrepreneurship, join him for his talk on exit strategies and creating a successful acquisition on August 18th by joining Founders Network and signing up to attend. Register now or request an invite to see if you qualify for membership and to learn more of these key takeaways:

• Understanding where you are as a company
• The benefits of a strong team
• Knowing when to exit

To learn more about exit strategies, see if you qualify for membership and check out the webinar from August 18.