Startups: Lessons Learned

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Startups Lessons Learned

• Gary York, Ph.D.
• Founder
• ComFrame Software Corp.
• Emageon, Inc.

2
The Seed is Planted

• Why cant I build my own software empire,
  instead of helping someone else build theirs?

3
In the Beginning

• Founders Backgrounds
• Web based medical, telecom, and imaging
  applications
• OO, C, Java
• CORBA, distributed systems
• Web Applications beginning in early 1996
• Talented Team
• Strong Technical expertise
• Little business or operations expertise

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School of Hard Knocks

• MontEagle clinical healthcare solution
• Great Idea for Integrated Clinical Information
  System
• Need 10M to Start
• Venture Capital Says
• Has the Management Team Done this Before?
• Where is the Product?
• Do You Have a Beta Customer?

5
Out of the Ashes

• Bet on JavaTM Technology (1997)
• Sell Our Expertise
• Be Technology Evangelists
• Ride the Java Wave

6
Java Consulting for Healthcare

• ComFrame Software Corp.
• Founded Oct. 1997
• Consulting for Clinical and Administrative
  Applications
• Conservative Growth Plans (Grow As We Have New
  Work)
• Run Lean Administration

7
Medical Imaging Spin-off

• Early Work with the University of Alabama
  Birmingham Medical Center
• Medical Imaging Application
• View CT, MR, X-ray images on standard PCs
• Adopt Java/CORBA platform
• Standard support through Digital Imaging and
  Communications in Medicine (DICOM)
• Need for Enterprise Class, Open Systems
  Applications
• Found Emageon to Commercialize Technology

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Top 10 Lessons Learned

• Getting Started
• Building Products
• Growing the Organization
• Have Fun

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10. Creative Financing

• Need Money to Start Any Venture
• Your Own, Friends, Family
• Get Someone Else to Pay
• License Technology You Develop for Someone Else
• Consult to Pay the Bills
• Split Off Small, Dedicated Team to Work on Product

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9. Find a Partner

• Find Your First Customer Who Will Develop the
  Product With You
• Solve Two Problems
• Customer Focus - Access to Group of Product
  Users
• Friendly Early Adopter and Reference Site
• Give Concessions to Gain Relationship
• Quality of the Site Counts

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8. Outsourcing

• You Cant Do Everything
• Outsource those Functions that are not Critical
  to Your Success
• Legal, Accounting, Payroll, System
  Administration, Marketing
• Lowers Risk and Reduces Equity Dilution
• Choose Carefully
• Quality Counts
• Contacts

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7. Chart a New Course

• Get to Know the Market
• Cant Have Product that is Me Too
• Learn From Mistakes of Current Products Think
  Ahead
• Apply Your Expertise to a New Domain
• Medical Imaging
• Enterprise Class, Internet Enabled
• Scalability, Availability, and Performance

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6. Hire the Best

• Question to Ask
• Who is the best x you have ever worked with?
• Hire that Person
• Dont Accept No
• Work Your Networks to Find Best
• Your Company is the People
• Go Outside of Your Circle
• Dont Let Egos Get in the Way
• Do What You Know, Not What You Want to Know
• If You Find a Better x, Be Flexible to Bring
  Them On

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5. Design Meets Discipline

• No Compromise on Quality
• Product
• Process
• First Impressions Are Critical
• Integrity Sells
• Dont Make Promises You Cant Keep
• Keep the Promises You Do Make
• First Customers Must Be Referencable

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4. Flexibility

• You Will Be Surprised
• Be Prepared to Change Your Plans
• Seize Opportunities that Move You Forward
• Warning Avoid Compromise on the Company Vision
• e.g. Custom Development Projects Would Divert
  Product Team

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3. Avoid Death by 1,000 Hats

• You Cant Do Everything
• Hire/Contract People to Do What You Cant or
  Shouldnt
• Focus on the Unique Value You Can Contribute
• Hire Your Own Boss
• If You Havent Been a CEO Before, Hire One
• Dont Plan on Learning on the Job

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2. Catch the Wave

• Get Out Front with a New Technology
• Java
• Better Platform for Software Development
• Excellent Distributed Systems Language
• Hot Platform with Big Marketing Machine
• Key Advantages
• Internet Support
• Platform Independence
• Rich, Standard API

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1. Dont Forget the Passion

• Do Something You Love
• Hard Work Will Not Be Worth It If You Dont Enjoy
  the Work
• Share the Vision
• Passionate Attitude Will Rub Off On the Team
• Team Must Share Company Vision

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Where Are We Today?

• ComFrame Software Corp. founded 1997Java,
  .NET, and Oracle Consulting
• Emageon founded 1998Enterprise Clinical Image
  Management

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ComFrame Software

• Profitable from Year 1
• Consistent Growth
• Excellent Reputation
• Many Awards for growth, including 2003 Best in
  Business

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Emageon

• Excellent Products
• Raised over 30M in venture financing
• Excellent Management Team
• Outstanding Customers and Partners
• Leading Solution Provider in 2003
• 2003 Revenue - 28M
• Positive earnings in 2003
• Fastest growing company 3 years in a row

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Conclusion

• A small group of dedicated people can accomplish
  anything
• gyork_at_emageon.com