
Christian convinced the Board of his employer to let him incubate a Cyber Security startup idea as a division of the company with an express intent of spinning it off.
Now, the company has been spun out, doing almost $20M in bootstrapped annual revenue, and may soon find a lucrative Exit. This is a phenomenal story for entrepreneurs considering the Bootstrapping with a Paycheck route.
>>>Sramana Mitra: If you quantify what was happening in these accounts, you were landing the accounts with your ERP channel and partnership management expertise and then growing those accounts. So, when you landed those accounts, what were the deal sizes and what kind of deal sizes were you able to expand these accounts to?
>>>Sramana Mitra: Okay, got it. You just took me through a bit of the pricing and ROI analysis. What did you price your product at?
>>>Sramana Mitra: I purposely actually picked to highlight the positioning points where you can differentiate it versus areas where you cannot really differentiate. The domain of billing is less of a big differentiation in ModMed. The bigger differentiation is in the specialty specific content, specialty specific workflow and specialty specific treatment, right?
>>>Sramana Mitra: Okay. So that’s one positioning differentiation. What about within the private practice market? Why do your customers pick you and what is special about it? What are the needs of a dermatology private practice or an OB-GYN practice or a plastic surgery practice? What’s special about each of these individual types of practices?
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I first spoke with Dan a decade back. Here is the story. This conversation offers insights on his scaling strategy with ModMed.
>>>Sramana Mitra: I assume that since it was a services company, you were able to bootstrap it, right?
Lance Newhauser: Yes, it was a service company that we initially bootstrapped. We did bring on one investor who put a few thousand dollars into the company so that we could go get some office space and work in the same area. But this was very much a bootstrapped, service-oriented organization. Over time, we incorporated technology to offer differentiated services and improve operational efficiency, enabling us to stay price-competitive. But we’re very much a bootstrapped service business, no doubt.
Sramana Mitra: Now, how did this company that spent $50 million on a campaign find you?
>>>Sramana Mitra: So what happens after this beer thing closes?
Ryan Rosett: Then I went into real estate development. I was probably 25 or 26 at this time.
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