My Company’s Identity Crisis

This afternoon I had a follow-up call with a prospective investor, Tom, to review our pitch deck. We were going through questions about our use of funds, exit strategy, market and sales plan, and milestones. As we were talking, I sensed that he was formulating an idea in his head. Then Tom asked me, “What is the scope of the problem you are trying to solve? What is the best opportunity to maximize investor capital? Is it to focus on the dementia and senior living market, or is the scope broader than that with applicability to drop the technology into 5 or 6 different verticals?”

Although the pitch deck I shared was very focused on the dementia opportunity, he put the pieces together about the same challenge that I have been struggling with. In the past conversations I have had with investors, I have faced countless challenges of investors trying to put me into a box as a digital health company, an IoT company, a tech-enabled service, a this or a that. On many occasions, I have shared that we are a technology and R&D company, with the first application being in senior care. This answer, though, has not been well received, and often the investment opportunity has been passed on. The other significant challenge in investor conversations has been articulating the value proposition. For healthcare-specific investors, they want to hear about how the person achieves a higher quality of life and remains healthy for longer. In contrast, more technology-focused investors want to hear about how the technology is differentiated and creates value for the user.

In response to Tom, I said, “I see an opportunity to sell CareBand as a branded product for people living with dementia in senior living and the home market. Yet I also am excited by the other applications of the technology in different verticals.” That is when he shared what he had been thinking about since the start of the conversation.

From our discussions up till now, I have gained sincere trust and respect for him. Tom is a lifelong serial entrepreneur, investor in and advisor to numerous startups, and has extensive experience in technology and technology businesses, including embedded systems, cloud computing, telecommunications, and IoT. If anyone understands what CareBand is and the opportunity here, it is Tom.

Without a breath, he clearly articulated, “I think what you have here is two separate companies; a core technology generating company and a vertically integrated healthcare company.”

These words made sense; they made so much sense. Sometimes when you are digging in the weeds, day in and day out, it is tough, if not impossible, to see the 10,000-foot view. In a matter of minutes, Tom cleared up the fog for me. He was right. These are two separate companies. One is a core technology, R&D, and engineering company. While the other one is a product-first, mission-driven, and digital health company. They each have their own identities, market strategy, and missions. When you conceptually separate the two, there is room to acknowledge that they require different team members and different investor profiles.

The separation of the two doesn’t sever the tie; they could still work together. The core technology company would then treat CareBand as a licensee or a partner in a niche market segment. The core technology company would be the enabler of the technology, while CareBand would execute on the strategy, sales, and support of the dementia care solution to the market. This very independence between the two companies allows them to make the right decisions to achieve their specific goals.

The conversation today with Tom has pushed my thinking about the identity or identities of my current company. The challenges around seeking investment and choosing the right investor profile, our team’s focus, and generating a sizable return on investment for my current stakeholders remain prevalent in my everyday thoughts as the CEO. Tom did not say that it was an all-or-nothing idea, but it is a lot to conceptualize and process. I see this as a real inflection point in my startup journey because I don’t want to see CareBand die. Still, I also wouldn’t consider my company a success if we only ever applied our technology to CareBand. It is a real identity crisis.

The good news is that I don’t need to make a decision today. The conversation today with Tom gave me a gut check on my direction and food for thought. With my acceptance into the mHub accelerator, I have bought myself 6-months to continue to think through my company’s identity or identities. Through being vulnerable and open during the process, I believe that I will end up in a stronger position than where I began and have a clearer understanding of my identity.