Startup Chapter 1 – Zanthion Today
We have decided to chronicle our journey as a startup so that others can benefit from the lessons we have learned. Our journey has been filled with joy and some disappointment. This is our story. Chapter 1 is about where we are today and why.
Today, Zanthion is poised for launch within the next 30 days to enter the senior quality of life predictive analytics market with healthcare predictive analytics having a CAGR of 29.3% and a total market value of 1.48 billion. Zanthion’s main emphasis for the first year is to limit falls and sepsis through predictive analytics with a combined market value of 14.39 billion by 2025.
Our recent validation as a company has come in many forms the first of which was the acquisition of a new incredibly gifted COO (J), with 25 years experience in medical technology and senior care. He inquired about the company 3 months ago and joined the next day. His input has congealed 4 ½ years of effort and the technical foundation into a machine ready for market.
Shortly after J joined, inquiries started coming in from companies seeking to pivot home alarm companies into senior citizen-oriented quality of life companies, staffing agencies for senior care facilities, and international companies asking for platforms to support their home health agency just in time delivery of service. We even had television personalities calling us for a home shopping network.
Some of those calls were calls from people and companies seeking to leverage our hard work with what they believed was a differentiator in the marketplace. One such company felt that we should allocate significant Zanthion stock and strike a partnership because they had established baseline measurements for the health signs that indicate frailty and [soon to be] falls. Of course, that data is easily available through academic and industry research papers and a portion of your company does not need to be relinquished to acquire it. Furthermore, sensor-based and habit-based artificial intelligence is not reliant on a baseline. Those same companies pitched us on their existing call center as a deal breaker. Those, too, are easily purchased and set up in our modern world.
An alarm company called us and asked us if we could provide support for their already existing pendant and home alarm sensors which used GPRS, phone technology, to handle all alarms. We indicated that we could do that but it would require at least a half of work or 3 people 2 months at $125k. For that price he wanted us to provide our backbone provisioning, maintenance, analytics, and responder products for $1 a month per subscription and tried to negotiate the $125k down to $36k. This kind of bartering is counterproductive for a small company.
Because we suddenly were exhibiting high demand for our platform J and I decided we needed to augment our 5 man team with a new CTO. We placed a job posting on Indeed.com outlining our exact needs, our current ability to pay, and the company status. We received 63 applicants many from mainstream corporate America with prior CTO and business owner titles. We asked CTO applicants to take the indeed Logic and Critical Thinking exam and received expert qualifications on 2 of 63 applicants. This was extremely disappointing as we expected a much better showing logically from CTO candidates.
These cases are examples of growing pains and the disappointments that are part of a growing company. What we learned from them was how to quickly differentiate the real from the unreal. Being able to differentiate the real from the unreal, the opportunity from the misdirection, reasonable funding vs unreasonable funding, valid functions vs invalid functions, and on and on is what ends up being the most important part of what startup leaders to. We avoid spinning our wheels as much as possible.
We are extremely confident in our products ability to provide value to a tremendous community of seniors and their families with watches that detect falls and notify others of wandering and a complete fixed BLE sensor line integrated with our wearable technology. Today, we applied for loans for $250,000 in order to purchase inventory to package and sell into the marketplace. Every company worth their salt reaches the point where they need revenue to get loans and loans to get revenue. This is where most startups take venture capital. They seek venture capital because they have been churning in the chicken and the egg scenario long enough where they are losing the market opportunity and they know that if they do not act they will lose their market. We are fortunate. Our market is considerable and there are still lenders who understand the value of our market and it’s potential. When finance companies take the chance on companies like Zanthion they are leveraging a small loan into hundreds of millions of dollars of future financing. It is a smart move. Soon we will launch the most comprehensive senior quality of life product in the market today enhancing the quality of life for millions of families in the years to come. We are thankful to everyone that has helped us make this happen.
Philip Regenie – Founder and CEO – May 20, 2019