AI is revolutionizing healthcare and savvy founders are leading the charge. Our new AI HealthTech Startup Case Studies course highlights how real entrepreneurs are building breakthrough startups at the intersection of healthcare and artificial intelligence. From drug discovery and diagnostics to remote monitoring and insurance innovation, this course dives deep into how HealthTech founders are
Sramana Mitra: What is the financial engineering that makes all this possible? Bob Allison: They were cash and stock, but mostly stock. We used valuation methodologies and acquired the companies usually in their 100% state, so we didn’t eliminate people and would just buy the tech. We typically bought the people because we thought they
Sramana Mitra: This is also very interesting from a technology entrepreneur’s point of view. Let’s say you focus on one of these specific use cases and you want to build a full-stack product to bring to market. That is a very dangerous path because it’s very expensive. Very often, the people who have the technical
Sramana Mitra: The business model is a development fee upfront. Then there’s a $1 to $2 royalty per user per month. That’s variable and it goes up and down. In some cases, the brands were charging for their app. In some cases, the app is free. Bob Allison: Yes. I would say that we had
Sramana Mitra: Which brands did you go after? Bob Allison: We built for Intel. We also built stuff for Bose, Life Fitness, and New Balance. We were building app experiences around training for these brands. We did TRX. The whole list probably had 25 brands. Sramana Mitra: Can you double-click down on the business model?
Sramana Mitra: How did you do the Bluetooth piece? Bob Allison: When Bluetooth came out, we started the piece that was Bluetooth. Originally, there wasn’t any Bluetooth; it was a direct connection only. You would take your dongle from your computer, plug it into our little radio, and you would import your music file. Sramana
Sramana Mitra: What happens next? Bob Allison: If I’d sold it for $200 million then, I’d have a different storyline. One of the things I didn’t know very well at that time was how to value my business. We did an exchange. There was some cash. It was primarily stock. In 1990, there was a
Bob has a background in semiconductors where the key business model for selling chips is getting them into design wins. In PEAR, Bob has parlayed this model into a platform business catering to many top brands who bring Digital Health products to market on their platform. There is a lot to learn for entrepreneurs from