EPSE Module 3 Guest Speaker

3/19/2012Marty Staszak

Science Experiment: “EPSE to Start-Up”

Introduction

• Marty Staszak• 28 years software engineering• EPSE 2011 graduate• At time, Sr. Director SW, Entropic Communications• Left Entropic May 2011• Mission: start a company (HSA Protector)• Here to share my experience

Currently

• President and CEO, Voluware Inc. (healthcare IT)• Incorporated 12/29/2011• Operating out of new downtown EvoNexus Foundry• Prototype stage with 2 customer stakeholders• Self-funded, looking for seed round

Story Begins: EPSE

• Loved it! Fantastic! Great experience!

• Mod 1: It’s about people!• Mod 2: Respect for the C Office• Mod 3: Hunting and Gathering

Why I Left My Job: PERSONAL

• It’s all a big game, pick any hat! (Alan Watts)• Entrepreneurs Credo (Thomas Paine)• Rich Dad Poor Dad (Robert Kyosaki)• The PERSPECTIVE in EPSE (Liu/Despain)• Reached my own personal escape velocity

Why I Left My Job: VISION• The “Software Age” is really just starting• Google, Apple, Microsoft

– Massive companies, flush with cash– Software is where the action is!

• Cloud, Agile, Open Source => technology accelerators– Low barriers to high valuations

• Subscription pricing == continuous revenue• What the heck am I doing in a semi-conductor

company anyway?

HSA PROTECTOR => VOLUWARE, INC.

HSA PROTECTOR

Presentation to Investors

5/23/11

HSA PROTECTOR

Protecting the medical savings accounts of

HSA subscribers so they can count on having

assets for future health care needs

Building health information exchange

applications that improve patient

outcomes and eliminate administrative

barriers for care providers

Reality

• Resigned, last day on job: 5/18/11• Made my HSA Protector pitch in class 5/23/11• Met with Ken Liu in early June

– Gave me honest feedback on gaps– Pointed me in the right direction, and– Realistically, you are about a year from seeing $$

from an investor…

The Basic Problem

• No Team…• No Customer…• No Product…

• And: No health care experience or partner

So What Did I Have to Work With?

• Relationships!• Experience!• Ability to Tell a Story!

• And a slew of books and podcasts for comfort since my family wasn’t talking to me anymore

THE JOURNEY

Consulting with Startups

• CommNexus: pro-bono advice to startups• mywijjit: June ‘11, acting CTO

– smart energy company startup• Perminova => July ‘11 Board of Advisors

– cloud based healthcare startup• HealthLinkNow: Sept ‘11, acting CIO

– telemedicine startup

Convergence: November 2011

• The Shame on You Speech - Randy Smerik• The Engineer At the Door• The EvoNexus Foundry• The Partner, The Customer and The New Idea:

HSA Protector => Voluware, Inc.

Pitching the Company

• Pitch to EvoNexus• Pitch to Wilson Sonsini• Pitch to EvoNexus 2• Pitch to Silicon Valley Bank• Pitching to investors…

Market: • Physician specialty practices who are required to

obtain Prior Authorizations to provide services • Independent Physician Associations/Medical Group

Directors responsible for managing utilization of services

Value Proposition/Differentiation:• Elimination of paper fax transactions• Web portal integration and credential management• Streamlined notifications, no more “time on hold”• ICD9/10 and HIPAA compliance• Payer/clinical authorization guideline integration• Authorization workflow analytics• Backend EHR and billing data integration

Key Team Members:• Marty Staszak, Founder & CEO

Software veteran near 30 years experience Formerly: Intel, 3Com, Nortel, Entropic

Communications and several startups Acting CIO at telemedicine startup

• Dr. Steve Kim, Board Member & Consultant Children’s Hospital Los Angeles, Staff

Pediatric Urologist USC Keck School of Medicine, Assistant

Professor Developing electronic care-coordination

interfaces with IPA medical director

Financing: • Currently self funded• Looking for seed round

Overview: Building a secure, cloud based healthcare coordination platform to address Prior Authorization workflow inefficiencies costing US healthcare $32B

annually

MARTY’S TAKE AWAYS…

Perspective: Life versus Class• Class

– It’s all here, though some things you’ll have to learn on your own• The biggest challenge for me was to overcome my own inertia

– Especially roles and relationships (Watts)• Lean Startups and the Evolution of Traditional Business Thinking

– Feld, Blank, Ries, Osterwalder, YCombinator, Tech Stars…– Amazing time to be starting a technology business

• The Dolphin Community• Hard Questions

– Founder's Dilemma - $ and Control– Delegation Dilemma - prioritization of effort– Compensation Dilemma

• Devilish Details– Incorporating a company– What does a Board do anyway?– Bookkeeping and Taxes

Perspective: Resources

• #1: Your own imagination • The Lean Startup – Eric Ries• Venture Deals – Brad Feld• Four Steps to the Epiphany – Steve Blank• The Business Model Canvas – Alex Osterwalder• Do More Faster – David Cohen• Entrepreneurial Thought Leaders Podcast Series• marty@staszakcom.com

– Always willing to help or answer questions!

Q+A