WEBVTT
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00:00:09.279I don't know why.
00:00:09.439 -->
00:00:13.039Because it's like, you know, you want to make it like good, but what does good even mean?
00:00:13.119 -->
00:00:15.279Because like sometimes it feels like a PBS broadcast.
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00:00:18.879Like today we have Jay Schaefer here with us.
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00:00:22.559Well, yeah, it's interesting.
00:00:23.039 -->
00:00:25.679That's the thing when I have get up and give a talk.
00:00:25.760 -->
00:00:32.079If you know your first couple of sentences, if you have those kind of not scripted, but know the points that you want to hit, you do that.
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00:00:34.079And then if you get through that, then you feel comfortable.
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00:00:34.399Right.
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00:00:39.280It was uh Edward Murrow, the CBS news guy from World War II.
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00:00:42.960He said, There's always butterflies in your stomach.
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00:00:45.119The trick is to make them fly in formation.
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00:00:46.479I always thought that was good.
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00:00:47.600Still trying to learn that.
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00:00:50.079Yeah, it's just it's natural to be.
00:00:50.320 -->
00:00:58.560I mean, I've got Sam over here looking at me, I'm like, oh my gosh, who's just glaring right through easy on the I like leaving this stuff in there.
00:00:58.640 -->
00:00:59.920I think it's more entertaining to listen to.
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00:01:02.479I prefer the podcast where it feels like you're the fly on the wall.
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00:01:02.719Yeah.
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00:01:05.680Oh, let's listen to conversation, you know, and it just feels more real.
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00:01:07.120So probably sending this in.
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00:01:08.959But I guess I'll do the official intro now.
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00:01:13.519So um welcome back to another episode, Spectre Speakeasy Podcast.
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00:01:20.239Today I've got Jay Schaefer here, uh Venture South, uh, Atlanta Tech Angels, Sun Microsystems back in the day.
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00:01:22.959We're gonna talk about all kinds of things, um, your path.
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00:01:24.400Uh thanks for coming on and chatting with me.
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00:01:24.959I'm excited to be.
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00:01:25.599Yeah, thanks, Sam.
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00:01:26.480Thanks for the opportunity.
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00:01:27.599Look forward to speaking with you.
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00:01:28.719Um, how was that intro?
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00:01:29.439That was that okay?
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00:01:31.040Nailed it.
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00:01:32.239Yeah, perfect.
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00:01:34.000Um pro.
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00:01:36.480That's what I like to hear.
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00:01:43.120Um so we met just a few weeks ago from networking, and um, I forgot, maybe Tim Smith or someone suggested we chat.
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00:01:52.959And one thing I while I walked away is like we are listening to and reading a lot of the same things overlap, but you uh in my notes this morning I noticed all these different podcast suggestions you gave me.
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00:01:54.719And so constantly learning.
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00:01:59.439And um so I'm excited about this conversation to learn more from you and hear more of that.
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00:02:13.919Um but tell me something about your story because it goes back to I mean, Sun Microsystems, and we're talking a little bit before this, because then you had what Netscape was the big browser then, and I mean really the early days of big computing and the internet and oh well I feel very fortunate.
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00:02:18.240I were we were in the Bay Area and I was fortunate to work for Sun Microsystems.
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00:02:26.319They just hit about a billion dollars and in revenue, and between 1990 and the 2000.com, they've grew to 20 billion.
00:02:26.479 -->
00:02:26.719Wow.
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00:02:33.039So and it had the one of the original four founders was Scott McNeely, and he guided the company through all those days.
00:02:33.120 -->
00:02:35.360So in some way, Sun was like a big startup.
00:02:35.680 -->
00:02:41.840And one of the things we used to uh when I joined in 91, the company was 75% desktop machines.
00:02:42.000 -->
00:02:54.560And then there were competitors that came in Silicon Graphics and other companies, and they had to switch, they pivoted to desk sides, which are servers now, and then it became 75% server servers.
00:02:54.800 -->
00:03:00.879So they just said, hey, uh, and Scott McNeil is famous for saying, if we don't obsoletece our product, somebody else will.
00:03:01.199 -->
00:03:05.919So always continually you position your product, then you follow your customers.
00:03:06.080 -->
00:03:07.759That was one of the lessons we learned there.
00:03:07.919 -->
00:03:14.080And then IBM Global Services used to give hardware away and send a team of consultants in.
00:03:14.159 -->
00:03:16.639So they started a professional services group.
00:03:16.800 -->
00:03:20.960And I was fortunate to be in the right place at the right time in 1995.
00:03:21.199 -->
00:03:28.240The head of the East Coast Professional Services brand new business unit was based in Atlanta, and I went to work for him.
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00:03:30.879So it was like a startup within a big company.
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00:03:31.680Wow.
00:03:31.919 -->
00:03:33.840I mean, what what was that like like day to day?
00:03:33.919 -->
00:03:36.800I mean, was it always something new, or do you have like everything?
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00:03:40.080Because I when I think of startups, I think of kind of chaos, right?
00:03:40.159 -->
00:03:43.199Like everyone's trying to figure it all out and get going, but that's for a big system.
00:03:43.280 -->
00:03:47.759So was it different than a startup like you deal with now, or was it kind of similar, just owned by a bigger company?
00:03:48.159 -->
00:03:51.599There are some similar similarities and some big differences.
00:03:51.840 -->
00:03:57.599The similarities were we didn't know what we were trying to do, let's put something together, test and learn quickly.
00:03:57.759 -->
00:04:06.400So the idea was there's all these um the competition was giving away hardware and ch charging to have people install it, implement some kind of plan.
00:04:06.560 -->
00:04:09.280So we had to figure out how we can compete against that.
00:04:09.439 -->
00:04:16.000And a lot of these salespeople were used to just selling the boxes and then had to go to the deck and then go the next customer.
00:04:16.240 -->
00:04:23.040So we had to put together projects, and it was in some ways it was like an early stage startup.
00:04:23.120 -->
00:04:28.160We had to say which of these projects are we gonna do, so we had to have a way to rank which are the best opportunities.
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00:04:38.879So I sat with the general manager for the east half of the United States, and we figured out first you want to have a way to rank the the uh this project that we might take on.
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00:04:41.519Is it easy, hard, or medium?
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00:04:41.759Yeah.
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00:04:47.839How much is involved, you know, kind of a scoping and then what kind of pricing and how much money we might make off of it.
00:04:47.920 -->
00:04:55.040So in the early days, we were just trying to get any deals we could, and then as the pipeline grew, we had to figure out which ones to prioritize.
00:04:55.360 -->
00:04:57.920So that's how it's similar to startups.
00:04:58.399 -->
00:04:59.600In some ways, it's kind of similar.
00:04:59.680 -->
00:05:11.680I imagine you've probably seen with AI now where like ChatGPT and Cloud, apparently they're uh putting teams together to do the same sort of thing to help basically get it launched in small businesses because there's this you know, businesses need help implementing it, right?
00:05:11.759 -->
00:05:16.319And the more that the business will implement it, the more their usage will go up and the more money they'll make.
00:05:16.399 -->
00:05:19.040But sounds kind of similar to what you're doing, or was it completely different?
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00:05:20.160Am I m misunderstood?
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00:05:29.120Well, it it was a culture change for the to say, hey, instead of just dropping off the hardware, we're gonna take interest in the customer and help.
00:05:29.279 -->
00:05:35.199Uh most of the time they were TM, which is time and materials, we'll give you hands to help implement this on hardware.
00:05:35.360 -->
00:05:38.720So that was um that was the early stage to get growing.
00:05:38.879 -->
00:05:51.040And over time you could develop into what were fixed price projects, which is probably similar in your business, and you could say we'll just charge you an hourly rate until this is done, or let's help you figure out what a deliverable is and then try and price that.
00:05:51.439 -->
00:05:56.879So most things are 80-20, it was probably 80% time and materials and 20% fixed price.
00:05:57.040 -->
00:06:04.879But again, as these projects came in, we had to figure out which ones to pursue and which ones aren't as good of prospects.
00:06:05.040 -->
00:06:07.519Some of them they might be strategic or whatever.
00:06:07.759 -->
00:06:12.800So we just put together, and I think we I'm a keep it simple, stupid type of person.
00:06:12.879 -->
00:06:14.160We called them one, two, three.
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00:06:23.040One was a description of the project, two was some kind of risk profile, how much was involved in it, and then the third was kind of a rudimentary uh budget.
00:06:23.279 -->
00:06:31.519How many people you'd need for how long and what type of um you know markup if it was TNM or margin you might make if it was fixed price.
00:06:31.759 -->
00:06:32.079Gotcha.
00:06:32.399 -->
00:06:34.399So it was it was kind of fun just kind of sorting through all that.
00:06:34.720 -->
00:06:37.680So how long what were you there and what was your next thing out of that?
00:06:38.639 -->
00:06:45.040I ended up uh probably in my 14 years at Sun, I was probably in the professional services for eight or nine of those years.
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00:06:47.600And it was interesting as we grew.
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00:06:53.920You were saying the similarities were there's a lot of unknowns and we had to test and learn and continually try things.
00:06:54.240 -->
00:07:01.680The biggest difference, a startup within Sun, we already had people, policies, and printers.
00:07:01.920 -->
00:07:08.240When we did our own startup, you know, we had to get hires, we had to have how are we gonna do this?
00:07:08.399 -->
00:07:16.560I mean, Sun had policies in place, and you know, a big billion dollar company had already lots of operating rules that we fell within.
00:07:16.720 -->
00:07:18.480And the other thing we joked about was printers.
00:07:18.560 -->
00:07:20.240We already had printers on the network.
00:07:20.319 -->
00:07:21.199Uh everything.
00:07:21.360 -->
00:07:25.600I mean, Sun was uh everything was network back then.
00:07:25.759 -->
00:07:32.800So I was using email in '91, and we used to say don't put an attachment on email, just send a link to somebody and let them click on it.
00:07:32.959 -->
00:07:35.680So that was kind of their business model back then.
00:07:35.920 -->
00:07:38.879If you bought a PC, you were the system administrator.
00:07:39.040 -->
00:07:42.720If you were at Sun, you had a desktop machine that was networked to all the other ones.
00:07:42.800 -->
00:07:44.800So it was the way things are now.
00:07:45.120 -->
00:07:45.920Right, right.
00:07:46.160 -->
00:07:48.639And so what was your next gig after that?
00:07:48.879 -->
00:07:59.120Oh, well, there was a time in must have been late 1999 that Sun, AOL, and Netscape decided to form this confederation.
00:07:59.360 -->
00:08:01.279And they were looking for people to help join.
00:08:01.360 -->
00:08:04.399They had they had to start a professional services group for that.
00:08:04.560 -->
00:08:06.800And I said, Oh, that sounds interesting.
00:08:07.040 -->
00:08:10.879And I remember one of my friends at Sun said, No, no good deed goes unpunished.
00:08:11.120 -->
00:08:22.800It was an interesting opportunity to work with those three companies, Sun, AOL, and Netscape, but it wasn't a merger, it wasn't a partnership, it was just these three companies decided to work together.
00:08:22.959 -->
00:08:33.360And Sun's negotiating was all of the iPlanet revenue would flow through Sun's books, and then they would reimburse the other partners or the other companies.
00:08:33.519 -->
00:08:44.960And so I went, I got a project to Europe where I got to implement some professional systems processes in Europe for the AOL and Netscape people that were in that group.
00:08:45.360 -->
00:08:46.159Oh wow.
00:08:46.639 -->
00:08:50.320I mean, how long did that, I mean, what how long did that last?
00:08:52.480 -->
00:08:55.200Well, the project is it was interesting.
00:08:55.440 -->
00:09:04.639There was the the the difference between a startup and a big company like that was kind of a political football, and that's none of the groups want to take it on.
00:09:04.720 -->
00:09:08.240They want to set up a separate business unit for iPlanet.
00:09:08.399 -->
00:09:25.919And so they set up a professional services for iPlanet, and that's where you know I got involved in setting those policies and how the you you know, the swimline diagrams like here, just how the who did what to who during the sales process, and then once the invoices were created all the way through to customer support.
00:09:26.080 -->
00:09:36.480So I was in the early days of whatever PowerPoint predecessor was making swim lines and diagrams and going to different people in different countries, say when this happens, this is what you do.
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00:09:36.960Yeah.
00:09:37.120 -->
00:09:42.639So you know, I don't remember a ton about that era technically, because that was a little before my time.
00:09:42.720 -->
00:09:50.639I remember getting like an Apple II computer, which I guess I would have been early 90s, something like that, mid-90s, and so I would have been, well, 95, I was 10.
00:09:50.960 -->
00:09:57.120So you know, but then I do remember AOL and the distinct noise of the the dial-up modems.
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00:09:59.200Um and the Netscape browser using that.
00:09:59.279 -->
00:10:02.559And I was mentioning earlier uh Mark Anderson or Andreessen.
00:10:02.720 -->
00:10:03.120Andreessen.
00:10:03.200 -->
00:10:03.840I always mess up his last.
00:10:07.600 -->
00:10:09.679And then uh wound up becoming Netscape, right?
00:10:09.759 -->
00:10:15.759And he's and and Netscape, I think, was bought by AOL.
00:10:16.639 -->
00:10:19.120And AOL, that that whole model is pretty fascinating.
00:10:19.200 -->
00:10:21.440I mean, basically giving away all the disk, right?
00:10:21.600 -->
00:10:23.200And then leveraging the modems.
00:10:23.360 -->
00:10:29.200I remember the fifth 56k modems and the noise they made, you know, whenever you dialed up, like that's a long, long time ago.
00:10:29.440 -->
00:10:33.200But um a lot of similarities now in some ways, right?
00:10:33.360 -->
00:10:38.320I mean, do you see any similarities between back then and now with with like what AI is doing and that sort of thing?
00:10:38.639 -->
00:10:42.480Because there's still kind of that barrier to human adoption.
00:10:42.639 -->
00:10:47.360And it's interesting how AOL took that on, and now we're kind of seeing AI taking that on.
00:10:47.440 -->
00:10:49.840You know, how do we get human adoption and people to pick it up?
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00:10:50.559Yeah.
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00:10:53.039Well, the technology is always changing.
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00:11:01.679And I think I mentioned Kevin Kelly is one of the founders of Wired magazine, and he said that technology is always changing, so we're perpetual newbies.
00:11:01.759 -->
00:11:02.879So just get used to it.
00:11:03.120 -->
00:11:06.559So there's people out there, I'm sure they're still using fax machines.
00:11:06.639 -->
00:11:10.159Um, but you just have to adopt to what new is coming along.
00:11:10.320 -->
00:11:20.240And the dial the acoustic coupling dial-up modems gave way to Wi-Fi, or earlier uh internal networks and then Wi-Fi that we're used to nowadays.
00:11:20.320 -->
00:11:26.159So you can hook a machine or they your device self-detects the internet, uh, the Wi-Fi.
00:11:26.320 -->
00:11:33.039So that's a big improvement over anybody that had to dial a number and then um with a modem or things like that.
00:11:33.519 -->
00:11:34.159Right, right.
00:11:34.480 -->
00:11:39.679So then then how did you get to what you're doing now as far as looking for companies, investing in companies, yeah?
00:11:40.159 -->
00:11:41.440Yeah, there are a couple of steps in between.
00:11:41.519 -->
00:11:50.480So Sun Microsystems did professional services, then iPlanet, and I can't remember how the iPlanet unfolded or uh unwound after that.
00:11:50.559 -->
00:11:52.639So but that must have been early 2000s.
00:11:52.799 -->
00:11:54.399It was probably after the dot com.
00:11:54.639 -->
00:12:02.000Yeah, if you're you're just a youngster then in 2000 when all the when all the stocks went south on that.
00:12:02.240 -->
00:12:06.320Uh and so I did another couple of jobs within Sun.
00:12:06.399 -->
00:12:13.600One was work in the OEM group because there were some people that use the Sun equipment into like some telecom companies.
00:12:13.679 -->
00:12:17.279They would use the internal components of Sun into systems.
00:12:17.360 -->
00:12:22.159And then I guess the last group I was in was another iteration of professional services.
00:12:22.399 -->
00:12:25.360At that time, my spouse and I were looking at a startup.
00:12:25.440 -->
00:12:27.840We had an idea for a startup to build.
00:12:28.080 -->
00:12:37.200And so in 2006, we we kicked off a company called VoiceQuilt, which was a uh customizable music box.
00:12:37.360 -->
00:12:55.360That was how we started the idea was, and again, you gotta remember this is before the iPhone came out, that you could send an invitation, customize an invitation and send to anybody with a phone anywhere in the world to celebrate a birthday, anniversary, graduation, any type of special event.
00:12:55.519 -->
00:13:01.519So you send that email, it's got a unique code for them to click on, call into, and that records a message.
00:13:01.759 -->
00:13:05.759The middle portion of the was a web-enabled voicemail.
00:13:05.919 -->
00:13:28.399So you're saying your mother's having a birthday coming up, and you want everybody to wish her happy birthday, they would call this number, the voice messages would come to your account, you could order them whatever way you want to, you could label them however you want to, and we got smart after the initial we allowed you to upload your music to the uh to what we call the voice quilt.
00:13:28.480 -->
00:13:35.039It was a qu voice uh just messages for this example of your mother's birthday.
00:13:35.200 -->
00:13:40.799Yeah, and then once you got that finalized, you could download to a music box.
00:13:40.960 -->
00:13:46.159So imagine your mother on a birthday getting a little music box and you open it up, it's got voices of family and friends.
00:13:46.639 -->
00:13:47.919So it was a great gift.
00:13:48.080 -->
00:13:55.200We uh you could also share to social media, but at that time all there was was Facebook and Twitter.
00:13:55.360 -->
00:13:58.000Uh but they weren't used very much.
00:13:58.159 -->
00:13:59.200But that was an option.
00:13:59.360 -->
00:14:00.639It was a viral project.
00:14:00.720 -->
00:14:04.559We built a great product, people loved it, we just couldn't sell enough of them fast enough.
00:14:05.360 -->
00:14:05.840Gotcha.
00:14:06.320 -->
00:14:08.000And so what what years were it were that?
00:14:08.879 -->
00:14:14.0002006 is when we started, and then we we closed it about six years later.
00:14:14.320 -->
00:14:14.639Gotcha.
00:14:14.879 -->
00:14:19.679Uh again, it we we just that was one of the important things, and we meet with founders now.
00:14:19.840 -->
00:14:22.960We were selling to individuals over the internet.
00:14:23.279 -->
00:14:31.759The gift space was really expensive to for customer acquisition cost, and you really have to change people's behavior.
00:14:31.919 -->
00:14:37.360We would get people that say, oh, well, we'll just wait till our 75th birthday or something instead of now.
00:14:37.840 -->
00:14:41.600So there were that's why channels are so important.
00:14:41.919 -->
00:14:56.559An interesting thing that we didn't think of, but we learned a few years in, was and if I was gonna start a company like this again, Division I women soccer coaches would buy voice quilt music boxes for all the graduating seniors.
00:14:57.279 -->
00:14:58.000It was a great gift.
00:14:58.080 -->
00:15:01.279All the team members would call and leave messages and would sell six or seven.
00:15:01.519 -->
00:15:05.919There was one coach that probably about thirty or forty of them for his team over the years.
00:15:06.399 -->
00:15:08.159So that's the point.
00:15:08.480 -->
00:15:14.080With a startup, you have to figure out where you can get traction quickly and sell into individual families and things like that.
00:15:14.240 -->
00:15:15.039That was a challenge.
00:15:15.200 -->
00:15:21.679If you can find a channel like women's soccer coaches, division one soccer coaches, they they would do that.
00:15:21.759 -->
00:15:22.399So right.
00:15:22.639 -->
00:15:28.639Kind of niching down basically, finding a get rich into niche, find some peop place where you can get traction quickly.
00:15:28.720 -->
00:15:37.919That's one of the most important things that I've learned now that I've been on in four startups and then now on this side advising startups.
00:15:38.240 -->
00:15:38.960Yeah, yeah.
00:15:39.120 -->
00:15:43.360Well, it sounds like a lot of uh uh good learning experiences from that.
00:15:43.840 -->
00:15:44.399It was great.
00:15:44.559 -->
00:15:48.320We we executed on what we were trying to do, we just didn't realize how hard it was.
00:15:48.480 -->
00:15:54.720And at the end, we were thanking people who had helped us along the way, and there's so many people that helped us, and so many people.
00:15:54.960 -->
00:16:00.799There's one fellow that would come by on a regular basis and I say, You're helping us so much, just send us an invoice, we really want to pay you.
00:16:00.960 -->
00:16:06.240He goes, No, people helped me when I was doing my startup, so I'm just returning the favor.
00:16:06.399 -->
00:16:09.039So that's a lesson that I've I've taken in as well.
00:16:09.200 -->
00:16:11.039Just help other founders along the way.
00:16:11.200 -->
00:16:20.720And one of the people that we reached out to in Atlanta, he's a visionary in the healthcare space, and in my mind's eye, Sam, I can remember saying, Well, thank you for helping us so much.
00:16:20.799 -->
00:16:21.840And he was like rubbing his hands.
00:16:21.919 -->
00:16:23.200He goes, Oh, so you got some free time.
00:16:23.279 -->
00:16:24.080I've got an idea.
00:16:24.240 -->
00:16:31.279Anyway, I went to help him launch uh it's a nonprofit in the healthcare space called Health Connect South.
00:16:31.600 -->
00:16:41.840And Health Connect South, his thesis was there's so many healthcare players in Atlanta, and they're all on these silos, and they don't know who else is there.
00:16:41.919 -->
00:16:48.639And he says they drive by 10 people on the way to Hartsfield Airport that they could do business with to fly to Mayo or Cleveland Clinic.
00:16:48.720 -->
00:16:50.159He says, let's get all those people together.
00:16:50.320 -->
00:16:52.799So he was the visionary, and I was the tactician.
00:16:52.960 -->
00:16:54.480So I said, Well, how do you want to do that?
00:16:54.559 -->
00:17:03.440You want to do like a um you know a website where people could get news, do you want to do a weekly newsletter, you want to do a monthly meeting, some type of thing like that?
00:17:03.600 -->
00:17:06.880He decided on an annual meeting together.
00:17:07.039 -->
00:17:12.400And the first one was at Woodruff Arts Center, he does them at the aquarium in downtown Atlanta now, and he invites hundreds of people.
00:17:12.559 -->
00:17:22.079And what I remember is uh the the rule for the first one was tell us what you do, don't assume we know, and tell us what you need.
00:17:22.400 -->
00:17:26.960And I was the one helping her out that in the first years we were trying to get you know some of these apps, but they weren't very good.
00:17:27.039 -->
00:17:30.960So we just put two big whiteboards up there with the mark markers.
00:17:31.119 -->
00:17:37.119One of them said, what you need and what you do, and people would just write on there, and then we took that and and disseminated afterwards.
00:17:37.279 -->
00:17:41.519For future events, we got uh an event app that helped out a little bit.
00:17:41.680 -->
00:17:45.039But uh what and he got different speakers there.
00:17:45.119 -->
00:17:56.799And I remember one of the speakers from one of the big organizations in Atlanta in the healthcare space, I think he said, an emergency is no time to exchange business cards with somebody.
00:17:57.119 -->
00:18:00.559He says you want to meet these people now, make acquaintances for them.
00:18:00.720 -->
00:18:04.960So if you do need something, yeah, uh you already have a connection made.
00:18:05.200 -->
00:18:11.359So and that's still in Health Connect South, it's still uh I think this is the 12th or 13th year it's it's been around.
00:18:11.680 -->
00:18:11.920Wow.
00:18:12.079 -->
00:18:14.720And you kind of have your own like version of that in some ways.
00:18:14.799 -->
00:18:16.640Like I tended, was it last week, right?
00:18:16.880 -->
00:18:18.240The Chattanooga Founders Forum?
00:18:18.400 -->
00:18:18.480Yeah.
00:18:18.640 -->
00:18:23.759Well, well that was a big shout out to Carter Fowler, the CEO and visionary of Totem Labs.
00:18:23.920 -->
00:18:28.880Uh we had read one of the books about the Boulder principles, and it says engage the tech stack.
00:18:28.960 -->
00:18:33.759And we said, well, let's just get some founders together in a room, get a couple of pizzas, and talk.
00:18:33.920 -->
00:18:39.200So you joined us, I think, for Dan Wykoff of Branch Technology just gave a great story.
00:18:39.519 -->
00:18:40.400Yeah, that was really cool.
00:18:40.559 -->
00:18:40.799Yeah.
00:18:40.960 -->
00:18:49.519Um, I've seen their products around, but I hadn't it's been a while since I've heard one of their pitches or a pitch deck, and it's pretty neat how they're they're expanded globally.
00:18:49.599 -->
00:18:50.799You know, really a cool project.
00:18:51.200 -->
00:18:52.000Well, to the moon.
00:18:52.240 -->
00:18:54.880Yeah, and to the moon, literally, yeah.
00:18:55.279 -->
00:18:56.799Um that's very fascinating.
00:18:56.880 -->
00:18:59.759I and one other for our for you the whiteboard.
00:18:59.920 -->
00:19:01.039Yeah, the two questions.
00:19:01.119 -->
00:19:02.640Uh and it was what do you need?
00:19:02.720 -->
00:19:06.640And tell Tell us what you do, don't assume we know, uh-huh and what do you need?
00:19:06.880 -->
00:19:12.720Those are the two things that uh Russ in his opening remarks, Russ LePerry said to the people there.
00:19:12.880 -->
00:19:16.559He said, uh, this is a first of this type of gathering.
00:19:16.799 -->
00:19:20.720All these people, you may not know each other, but you're in the same place.
00:19:21.119 -->
00:19:23.279And um let's see what we can make happen.
00:19:23.599 -->
00:19:26.160In your opinion, how hard are those two questions?
00:19:26.319 -->
00:19:29.599Because they seem very simple, but they can be very challenging.
00:19:29.759 -->
00:19:30.880Even the what do you do?
00:19:31.039 -->
00:19:35.759You know, like so many times we'll ask companies, well, tell us your elevator pitch.
00:19:36.240 -->
00:19:38.000And then five minutes later we're still going.
00:19:38.240 -->
00:19:39.440It's like, well, that's it.
00:19:40.559 -->
00:19:42.319Chad Nooga, we don't have elevators that long.
00:19:42.880 -->
00:19:45.680Um but even the what do you need, you know.
00:19:45.759 -->
00:19:46.079I don't know.
00:19:46.160 -->
00:19:47.759Like it do you ever get any feedback on that?
00:19:47.839 -->
00:19:50.319Have you watched people struggle with those two just out of curiosity?
00:19:50.720 -->
00:19:51.279Well, it depends.
00:19:51.359 -->
00:19:54.559If you're going to a networking event, you should be prepared to do that.
00:19:54.640 -->
00:19:55.440That's one of the things.
00:19:55.599 -->
00:20:03.039If you came to our CFF event and you saw that I had the name tags pre-printed, because we'll have somebody come to an event and put Joe on it.
00:20:03.200 -->
00:20:08.960Well, you're not really eager to meet with other people if you're not going to have business cards or give your full name to people.
00:20:09.119 -->
00:20:12.240So you never know where the connections can lead.
00:20:12.319 -->
00:20:14.079Everybody has a piece of the puzzle.
00:20:14.480 -->
00:20:14.799Yeah.
00:20:14.960 -->
00:20:17.759And you noticed I didn't put a name tag on because I came in late.
00:20:17.920 -->
00:20:19.279Oh, did get a slice of pizza.
00:20:19.599 -->
00:20:19.759Okay.
00:20:19.920 -->
00:20:20.079Okay.
00:20:20.720 -->
00:20:22.079But I had one printed up for you.
00:20:22.319 -->
00:20:22.480You did?
00:20:22.720 -->
00:20:23.440I appreciate that one.
00:20:23.599 -->
00:20:24.160Yes, that's okay.
00:20:25.119 -->
00:20:27.599Well, there's execute you know, that's one of the things.
00:20:27.759 -->
00:20:30.319The most important thing is people coming together making the connections.
00:20:30.480 -->
00:20:37.119Because just like the fellow at Health Connect South that said many years ago, you know, emergency is no time to trade the business cards.
00:20:37.359 -->
00:20:46.640There's people here that we can help move, we bolster the Chattanooga startup ecosystem, and it's easier if you have the connections in place already.
00:20:46.960 -->
00:20:47.680Yeah, absolutely.
00:20:47.920 -->
00:20:51.359So tell me some of Venture South, like what you're looking for there and kind of your experience.
00:20:51.599 -->
00:20:53.119You know, how how has that been going?
00:20:53.200 -->
00:20:56.720And well, we got to before we get to Venture South, there's a couple other steps.
00:20:56.880 -->
00:20:58.559The last one's okay.
00:20:58.640 -->
00:21:06.240No, no, because this the evolution was I was in the st Sun and I was working in startups and thought, oh, these are startups.
00:21:06.319 -->
00:21:17.279And then you realize when it's your own money, and even though it's got a lot fewer zeros than it was at Sun, but you don't have policies and printers and all kinds of other things you need to get a business off the ground.
00:21:17.440 -->
00:21:19.279Um that that was a challenge.
00:21:19.359 -->
00:21:25.039And then Health Connect South, and then I joined a VC-backed company.
00:21:25.200 -->
00:21:28.160That was the fourth startup that I was in, and I put my year in.
00:21:28.240 -->
00:21:31.359I joined the day the first beta site went open.
00:21:31.599 -->
00:21:37.519And so, like the other definition of technology is something that doesn't quite work yet.
00:21:37.839 -->
00:21:46.160So the system was uh there's a thing called happy path, which is how the system is designed to work and how the people interact with it.
00:21:46.319 -->
00:21:48.640And so we're pretty far from that happy path.
00:21:48.880 -->
00:21:55.680And I we identified about 60 or so things that we could do to get people on the happy path.
00:21:55.839 -->
00:21:59.839And one of them, for example, was people would come into this space and they didn't know where to go.
00:22:00.079 -->
00:22:02.559So we put like footprints on the ground or arrows.
00:22:02.799 -->
00:22:08.640That was that was a way to get people because you're when new things come along, you have to change people's behavior.
00:22:09.200 -->
00:22:14.559And that's uh that's the key to entrepreneurship is changing customers' behavior.
00:22:14.720 -->
00:22:14.880Yeah.
00:22:15.119 -->
00:22:17.839If you think about it, I'm sure in your business as well, Sam.
00:22:18.000 -->
00:22:23.200You know, you there's um uh there's things that you have to do to get people to buy.
00:22:23.839 -->
00:22:27.119Psychological, yeah, yeah, and emotional and all all the rest.
00:22:27.279 -->
00:22:28.720So anyway, where were we?
00:22:28.960 -->
00:22:37.599I was at um the last one was VC backed, so I presented to investors and prepared material for investors on a regular basis.
00:22:37.759 -->
00:22:40.400And some Atlanta Tech Angels had invested in that company.
00:22:40.559 -->
00:22:53.920So while I was struggling to get people to the happy path in that company, I would meet for coffee with some of the Atlanta Tech Angels and say, hey, you know, I've got this issue that I'm working on, or what do you think about this, or how to do that?
00:22:54.319 -->
00:22:59.839And uh they say, after I put my year in, they said, Why don't you come to Atlanta Tech Angels?
00:22:59.920 -->
00:23:02.400And I'm like, I don't know anything about angel investing.
00:23:02.480 -->
00:23:04.400They said, Well, you know about founders.
00:23:04.559 -->
00:23:11.519And long story short, I joined Atlanta Tech Angels, um, asked them where they need the most help, and they said screening startups.
00:23:11.599 -->
00:23:15.759So I co-lead the screening committee and uh just started talking to investors.
00:23:15.920 -->
00:23:17.519That was November of 2019.
00:23:17.759 -->
00:23:30.480And if people can remember by March of 2020, that was the old way that people used to do angel groups was meeting at a law firm in Buckhead if you spent much time in in Atlanta.
00:23:30.559 -->
00:23:58.559So it's not it it that was uh one kind of circumstances, and then everything moved to Zoom by March of 2020, which really opened it up so we could get a lot more people and yeah, I would laugh because we would tell the companies that came to the law firm to bring printouts of your slide deck because invariably somebody's PC or Mac wouldn't work with the systems that they had there and would spend their time allotted to give us their pitch trying to get to present.
00:23:58.640 -->
00:24:01.119So uh you're you're talking about your elevator pitch.
00:24:01.200 -->
00:24:05.359The elevator pitch isn't doesn't go well when they're plugging leads in and have a laptop or something.
00:24:05.519 -->
00:24:05.839That's right.
00:24:06.319 -->
00:24:10.880So but with with Zoom, uh that's really a difficulty.
00:24:11.039 -->
00:24:19.759So it's much easier for people to get through and we can do more pitches from founders in in less time with better quality.
00:24:20.079 -->
00:24:21.039Yeah, yeah.
00:24:21.359 -->
00:24:24.240And so at that point, I mean, how many people you think you're talking to?
00:24:24.480 -->
00:24:25.119How many different founders?
00:24:25.680 -->
00:24:28.400So we get about 20 or 25 applications a month.
00:24:28.640 -->
00:24:32.799So over the five plus years, I've seen hundreds of applications of companies.
00:24:32.960 -->
00:24:35.599We invite five to screening each month.
00:24:35.839 -->
00:24:40.240So that's 11 uh meetings per year, so that's 55 companies.
00:24:40.400 -->
00:24:43.599So I see a lot of startups over the time.
00:24:43.759 -->
00:24:47.599And then I reach out and speak to founders on a regular basis.
00:24:49.920 -->
00:24:51.039Yeah, yeah, no, it does.
00:24:51.200 -->
00:24:57.680Um so what's that path, you know, from from getting to um like to them actually getting funding?
00:24:57.759 -->
00:25:00.240You know, how long does that take from them submitting application?
00:25:00.319 -->
00:25:01.119And yeah.
00:25:01.359 -->
00:25:05.359You know, uh it's probably complex, but like the short synopsis of it, you know.
00:25:05.920 -->
00:25:07.839Uh well, let's see.
00:25:08.240 -->
00:25:11.759What I always tell founders the best place to get money is from customers.
00:25:12.079 -->
00:25:20.559There's no better validation of somebody paying you mutually and voluntarily paying you good exchange of services.
00:25:20.640 -->
00:25:23.200That's the best way for a startup to get money.
00:25:23.359 -->
00:25:28.559The next best place is partners, suppliers, vendors, anybody that wins when you win.
00:25:28.799 -->
00:25:32.799You might have companies that you could like co-market with or or work together.
00:25:33.039 -->
00:25:39.200You um can combine forces to get a sale and then you have some kind of split.
00:25:39.440 -->
00:25:51.440That's much better way to get revenue, get money, funding, than um you know, customers, then partners, suppliers, vendors, and if you can't raise enough money, then you go to outside sources.
00:25:51.599 -->
00:25:56.160Uh, if you have assets that you can borrow against, you know, the bank might be a good fit for that.
00:25:56.319 -->
00:26:06.880But if you are in a position where you want risk capital, angel investors or VCs, we'll talk about the differences there, uh, then they're gonna want a piece of you.
00:26:06.960 -->
00:26:08.640They're gonna want a piece of your business.
00:26:08.960 -->
00:26:17.279So uh the other two groups don't, customers or partners, suppliers, vendors, don't usually want equity, don't want to own part of your company.
00:26:17.680 -->
00:26:24.960But if you um a bank will give you money now, they want money back and they want pennies on the dollar for interest.
00:26:25.119 -->
00:26:32.720But a VC or an angel investor wants they'll give you dollars a day with the hopes of five or ten or more dollars in the future.
00:26:33.039 -->
00:26:33.599Right, right.
00:26:33.839 -->
00:26:35.359So and yeah, yeah, yeah.
00:26:35.839 -->
00:26:41.359So yeah, let's what is difference, your uh your definition difference between angels and venture.
00:26:41.839 -->
00:26:42.720Uh well that's easy.
00:26:42.960 -->
00:26:44.799Angel investors invest their own money.
00:26:45.680 -->
00:26:49.039Venture capitalists are investors who have investors.
00:26:49.599 -->
00:26:58.880So the venture capitalists uh VCs invest between one to six dollars out of every hundred dollars, one to six percent roughly.
00:26:59.039 -->
00:27:02.000Some can do more, but you can't do less than that.
00:27:02.160 -->
00:27:13.759And so they're using other people's money, they charge uh fees to uh invest, and then they take an upside of the if there is a return, they take that's just the the structure.
00:27:13.920 -->
00:27:27.440And there's we could spend the rest of our time talking about all the different ways that they do, but in general, there's typically fees up front, and if there is a successful exit, then they take up part of uh a portion of that.
00:27:27.519 -->
00:27:28.880That's how VCs operate.
00:27:29.039 -->
00:27:34.400The angel investors like Atlantic Angels were all volunteers, so there's no carry on a deal.
00:27:34.640 -->
00:27:39.440Everybody splits whatever exit there is according to your share of investment.
00:27:39.759 -->
00:27:49.039And Venture South has a smaller, there's a membership, but then there's a percent that's about 10 percent if there's a success successful exit.
00:27:49.440 -->
00:27:49.920Gotcha.
00:27:50.319 -->
00:27:54.400And so what is much lower than the standard 20 or more percent from VCs.
00:27:54.880 -->
00:27:55.200Okay.
00:27:55.519 -->
00:27:57.440And so you're working right now with both, right?
00:27:57.519 -->
00:27:59.920I mean Venture South and Atlanta Tech Angels.
00:28:00.559 -->
00:28:08.240Well, uh I spend my time talking to really smart founders, tell me how they're gonna make money and see if it's a good fit for either of those two angel groups.
00:28:08.400 -->
00:28:09.920They're both stage-specific.
00:28:10.079 -->
00:28:12.400Venture South is typically a little bit later stage.
00:28:12.559 -->
00:28:20.640Atlanta Tech Angels will do uh an MVP, which minimum viable product, uh prototype with a paid or unpaid pilot.
00:28:20.720 -->
00:28:22.079That's kind of the floor.
00:28:22.240 -->
00:28:26.319That means if you if you have an idea, it's a little bit too early for Atlanta Tech Angels.
00:28:26.480 -->
00:28:35.039Venture South prefers companies that have several hundred thousand dollars of of revenue, preferably repeatable processes, and they want to step on the gas.
00:28:35.119 -->
00:28:43.440Uh so if ATA is first base, Venture South is rounding first on the way to second, second being a Series A or some type of venture capital round.
00:28:43.599 -->
00:28:46.559So that's kind of the rough ways I tell folks.
00:28:46.640 -->
00:28:58.079Uh eight Atlanta Tech Angels sometimes fill out a later stage deal, and Venture South on occasion has a few early stage companies that are pre-revenue but with contracts in sight.
00:28:58.480 -->
00:29:03.519I'm guessing with the name Atlanta Tech Angels, all tech companies, or do you go outside of that realm as well?
00:29:04.000 -->
00:29:08.880Well tech has a wide uh meaning.
00:29:09.039 -->
00:29:11.759Every company has some component of tech to it as well.
00:29:11.920 -->
00:29:17.119The interesting thing is Atlanta Tech Angels, half the companies that present at the member meeting are from outside of Georgia.
00:29:17.759 -->
00:29:22.000So we're investors are look for the best opportunities that they can.
00:29:22.240 -->
00:29:42.400So um Venture South's thesis is a day's drive to and from Greenville, South Carolina, which is where they're headquartered, and Chattanooga's on the western frontier of the Venture South network, and Atlantic Tech Angels is um you know from Louisiana to Virginia down to Florida in that in that area.
00:29:42.720 -->
00:29:42.960Okay.
00:29:43.200 -->
00:29:48.000So we're just looking for early stage companies that are looking to raise money.
00:29:48.480 -->
00:29:56.960And then like any of those companies you can talk about right now that are partnered with and well, I'd like to talk about companies in Chattanooga.
00:29:57.200 -->
00:29:57.359Yeah.
00:29:57.599 -->
00:30:12.160There's a founder, Ryan Seaberg, who went to Baylor's football player, played some professional football in the European leagues, and he has developed a workflow product for drug treatment centers.
00:30:12.400 -->
00:30:25.599The founding story, and we let Ryan tell it much better than I could, but he had a friend that had a got hooked on the drugs, the painkilling drugs, and had an overdose.
00:30:25.759 -->
00:30:29.920And so that was part of his desire to help with this process.
00:30:30.160 -->
00:30:33.279And you we were talking about technology earlier.
00:30:33.519 -->
00:30:40.960Apparently, um the in a drug treatment center, the workflow, there wasn't a piece of software for that.
00:30:41.039 -->
00:30:51.839So if you come in, you're patient number one, you go to bed number two, you get this, but they match the prescription against what was actually dispensed, and then produce a report at the end.
00:30:51.920 -->
00:30:53.119I may miss a step in there.
00:30:53.200 -->
00:30:54.559You need to get Ryan on your program.
00:30:55.279 -->
00:31:03.440But his group, uh his his company, he works, he folds right into the uh the existing medical health record.
00:31:03.680 -->
00:31:13.440It's just a plug-in to that, and he's got some companies that he is um working with, and just every that's a it's a SaaS model.
00:31:13.519 -->
00:31:17.599So when he puts a new installation up, he gets paid a certain amount for that.
00:31:17.839 -->
00:31:19.599So uh kudos to Ryan.
00:31:19.680 -->
00:31:22.720He's worked really hard to get his company to the position it's in now.
00:31:22.880 -->
00:31:28.799So Atlantech Angels put a little money into that company yet, probably not big enough for Venture South at this stage.
00:31:29.200 -->
00:31:29.680Gotcha.
00:31:29.920 -->
00:31:30.240Okay.
00:31:30.799 -->
00:31:33.279Um any other exciting ones to share?
00:31:33.519 -->
00:31:34.319I'm gonna keep prodding.
00:31:34.720 -->
00:31:44.319Well, that's what well, I mean, I think that an exciting company in Chattanooga is totem with that, and so they just uh completed uh uh crowdfunding.
00:31:44.960 -->
00:31:53.279So angel investing, to be an angel investor, you have to be a credit investor and go to sec.gov for the regulations.
00:31:53.359 -->
00:31:58.720Uh you think it's straightforward, but there's some um trick trickiness in there.
00:31:58.880 -->
00:32:09.440But you have to have there's a wealth criteria and an income criteria, um, and they're looking at changing that uh or modifying that, but it's the government works at its own pace.
00:32:09.519 -->
00:32:11.759So it'll be some time before those come into place.
00:32:11.920 -->
00:32:16.960But anyway, the credit investors are the ones that can invest into the startups.
00:32:17.200 -->
00:32:29.119There's something called uh reg CF for crowdfunding that anyone can invest into uh startup companies, and totem did around that way recently.
00:32:29.279 -->
00:32:31.519Um I'll tell you about one more just a second.
00:32:31.759 -->
00:32:45.839The um the the idea is, or you hear people say you can bet on the NBA finals, which are which are coming up, you can buy a lottery ticket, but there are restrictions on you investing in your sister-in-law's startup.
00:32:46.000 -->
00:32:47.440And you know, how fair is that?
00:32:47.599 -->
00:32:55.519So they're working to crowdfunding as a way to allow a broader audience of people who aren't necessarily accredited investors to invest in a company.
00:32:55.839 -->
00:33:02.160VentureSelf partnered with a group called Vicinity, so it's Vicinity, uh, VentureSelf Vicinity.
00:33:02.480 -->
00:33:09.279Um, and we raise money for Tarran, which is the company based here in Chattanooga that does the football jerseys.
00:33:09.359 -->
00:33:11.759Are you a football club uh guy here?
00:33:12.079 -->
00:33:12.799Not not exactly.
00:33:13.119 -->
00:33:13.279Okay.
00:33:13.440 -->
00:33:14.480Well, what by football do you mean?
00:33:14.640 -->
00:33:15.519Like soccer or like football?
00:33:16.160 -->
00:33:17.200The football, the soccer team.
00:33:17.279 -->
00:33:18.640The Chattanooga Football Club here.
00:33:18.880 -->
00:33:21.119Okay, see it's their jerseys, say Tarran on them.
00:33:21.279 -->
00:33:30.000Taryn uh makes the jerseys, and they're uh I actually have I know this is a a podcast, but I have my Tarran pants on now.
00:33:30.160 -->
00:33:32.480They're hiking pants, but they look like work pants.
00:33:32.720 -->
00:33:33.200And they're great.
00:33:33.279 -->
00:33:35.279They're probably the most comfortable pants I have.
00:33:35.519 -->
00:33:44.960And so Venture South vicinity was able to raise over$400,000 for Tarran this past fall through people here in Chattanooga and throughout the Southeast.
00:33:45.200 -->
00:33:45.759Oh, that's awesome.
00:33:46.000 -->
00:33:46.480So that's it.
00:33:46.559 -->
00:33:47.920And you don't have to be a credit investor.
00:33:48.079 -->
00:33:55.599So I'm looking for other companies that that might that might be candidates for a crowdfunding raise.
00:33:56.079 -->
00:33:56.240Okay.
00:33:56.720 -->
00:34:05.440And then how are you- I mean, I guess that's where the networking comes in, like the different meetings you have and that's what's the process like, you know, find those because that could kind of be a needle in a hayscoat, right?
00:34:05.680 -->
00:34:08.159Well, angel investing is a contact sport.
00:34:08.480 -->
00:34:19.599That's what I learned at well, being a founder first, and now as an angel investor, if I sat here and twiddled my thumbs and waited for people to knock on my door, probably wouldn't get many good opportunities.
00:34:19.760 -->
00:34:30.960So I spend my time talking to founders, talking to other business successful business owners here, like Spectra's cool speakeasy lab we're in right now.
00:34:31.360 -->
00:34:40.880Um, and see, because you never know where the it's probably one of the lessons that I learned from Health Connect South, make those connections earlier, because you never know.
00:34:40.960 -->
00:34:42.960I say everybody has a piece of the puzzle.
00:34:43.039 -->
00:34:47.039Yeah, and you know, just talk to different people.
00:34:47.199 -->
00:34:49.119Success always leaves footprints.
00:34:49.440 -->
00:35:02.800Something that you've there may be lessons here for somebody, look at Spectrus uh website, and there may be some things that you and your team has done that another Chattanooga company could benefit from learning some of the lessons that you've learned.
00:35:02.880 -->
00:35:02.960Right.
00:35:03.199 -->
00:35:08.639So that's what I so there if you sit back, you won't get the best opportunities.
00:35:08.800 -->
00:35:11.840And so just try and make those connections and get in front of people.
00:35:11.920 -->
00:35:18.239So I I'm curious now with um Bay Area and Atlanta.
00:35:18.800 -->
00:35:20.960Chattanooga for the last six years basically, right?
00:35:21.519 -->
00:35:21.920Five years, yeah.
00:35:22.079 -->
00:35:23.920Five years, okay, right after soon after COVID.
00:35:24.320 -->
00:35:27.760Um, what are differences in in networking of those three cities?
00:35:28.159 -->
00:35:30.320Just making connections of any kind, however that is.
00:35:30.800 -->
00:35:32.559No, no, that's a that's a great question.
00:35:32.719 -->
00:35:36.880Well, one benefit in Chattanooga is it's easy to get around here.
00:35:37.119 -->
00:35:38.960Like you can meet people quickly.
00:35:39.360 -->
00:35:46.079Um and so unless you're going to on top of one of the mountains, you can meet with somebody in 15 minutes um here.
00:35:46.320 -->
00:35:48.239And people are open to that.
00:35:48.400 -->
00:36:00.880Was one of the great surprises um before I mentioned when we decided to move to Chattanooga and we put an offer on a house, but it wasn't gonna be ready for a couple of months.
00:36:00.960 -->
00:36:03.280And so I just started reaching out to people then.
00:36:03.360 -->
00:36:05.840And so many people were willing to give me time.
00:36:06.159 -->
00:36:11.199Matt and and Cam from Brickyard, I would talk to them before we'd even moved up here.
00:36:11.440 -->
00:36:13.519And I got all fired up talking to them.
00:36:13.760 -->
00:36:30.480Ted Alling was kind enough to give me some time to talk with him and just um I know I'm gonna leave people off this, but there were people before we I had even moved here, before we'd even moved here, just were making connections and try and um, you know, learn more about what's going on here.
00:36:30.639 -->
00:36:31.280So yeah.
00:36:31.519 -->
00:36:35.840I'm just curious, being, you know, I'm 41 years local here in Chattanooga.
00:36:36.320 -->
00:36:40.159Um travel plenty though, and just and but it's not the same.
00:36:40.480 -->
00:36:46.719You know, traveling and spending a week or two weeks, even a month in another city, it isn't really the same as like setting up that's your home base, right?
00:36:46.800 -->
00:36:48.239And really trying to get to know locals.
00:36:48.639 -->
00:36:50.960Um has it been difficult getting into Chattanooga?
00:36:51.199 -->
00:37:07.440Because I hear from other friends that move here, other people I meet, are like, man, getting into the network here in Chattanooga is hard because it's kind of still got that small town vibe a little bit, you know, and plus I think there's a little like old money vibe too, but likes to stay almost like that's changing though with new money coming in.
00:37:07.519 -->
00:37:08.800But I'm curious your take on it.
00:37:09.039 -->
00:37:09.840Well it's a challenge.
00:37:10.000 -->
00:37:19.039We were in Atlanta for 20 years, and I had friends that I knew and did things with, but they kept their their worlds separated.
00:37:19.199 -->
00:37:29.039You know, they were part of a country club where they went to one of the uh Baylor GPS Macaulay equivalents in those schools, and they they kept those people separate from the rest.
00:37:29.280 -->
00:37:39.199So this is I don't think there's Chattanooga's different in that respect, in that people are just used to their their own habits and ways and things like that.
00:37:39.360 -->
00:37:42.079So that's that's not unusual.
00:37:42.239 -->
00:37:48.320There are a lot of people that have moved here in the last five years or so, like I have, that are energized and want to get plugged in.
00:37:48.400 -->
00:37:57.039And that's why I just feel fortunate that Colab folks have let me sit with them just to see a great well well, lay back up.
00:37:57.280 -->
00:37:59.679Brickyard is changing Chattanooga.
00:37:59.840 -->
00:38:01.760They've invested in at least 55.
00:38:02.079 -->
00:38:05.280Sorry, Matt and Cam, I didn't check the website this morning, maybe more.
00:38:05.599 -->
00:38:08.000Um, but they've invested in 55 companies.
00:38:08.079 -->
00:38:09.760They come here to Chattanooga for a time.
00:38:10.079 -->
00:38:14.239Some of them are gonna stay here, and that's gonna change Chattanooga for the better.
00:38:14.480 -->
00:38:29.679The Colab switched um to bringing a few companies in every year with different disciplines, uh, a different focus for some of the big partners here: TVA, EPB, Volkswagen, uh King Co.
00:38:30.000 -->
00:38:37.519Transco, companies that can help these big companies here, and it'll be a win-win situation.
00:38:37.760 -->
00:38:43.039So I think what Colab is doing is really interesting, bringing uh there's 20 or so companies here.
00:38:43.199 -->
00:38:56.719And if anybody's interested in mentoring opportunities with Colab, uh we'll put something in the notes after this, how to do that, because just making the connections for the company here can help keep those Chattanooga companies here.
00:38:56.880 -->
00:39:06.639Uh but part of the challenge, if somebody like myself that moved here, someone to give me the advice, just go to Colab or hang out some of these opportunities.
00:39:06.719 -->
00:39:09.440That's one of the reasons we created the Chattanooga Founders Forum.
00:39:09.599 -->
00:39:13.920Somebody that's new here, come and plug in because you never you never know.
00:39:14.079 -->
00:39:14.320Yeah.
00:39:14.559 -->
00:39:21.119So uh there's no I just moved to Chattanooga.com where people have to register.
00:39:21.280 -->
00:39:21.440Right.
00:39:21.760 -->
00:39:30.400So it's a challenge to uh find and just want to give people opportunities to learn about all the interesting things going on.
00:39:30.559 -->
00:39:41.280I met with some folks a couple of weeks ago that have a really interesting fulfillment business here in Chattanooga, and they say they have customers from all around the country and around the world, but they don't know many people here in Chattanooga.
00:39:41.519 -->
00:39:41.760Yeah.
00:39:41.920 -->
00:39:46.000Um the iFixit guys relocated their headquarters here, which is cool.
00:39:46.159 -->
00:39:55.280So there's lots of things going on, and um, that's yeah, I just interesting to learn what's going on here.
00:39:55.760 -->
00:40:03.199Why why do you think, or what would your if you had an elevator pitch for a company to move to Chattanooga, what would it be?
00:40:03.920 -->
00:40:08.000The uh elevator pitch for a company to move to Chattanooga.
00:40:08.639 -->
00:40:16.480Well, I think part of what Brickyard appeal to is they get the people here and there's not all the distractions.
00:40:16.719 -->
00:40:18.159You can move around.
00:40:18.239 -->
00:40:21.599Uh Brickyard is product market fit boot camp.
00:40:21.760 -->
00:40:23.920Those founders can stay there.
00:40:24.000 -->
00:40:30.559They have the things they need: a health club, the coal plunge, the sauna, the apartments, the food or whatever.
00:40:30.639 -->
00:40:31.599That's right there.
00:40:31.840 -->
00:40:46.960But also if you're in uh Atlanta, which was a wonderful place, we've endured our 20 years there, but uh it's a challenge to get from Peachtree City to um, I don't know, someplace in Kennesaw or whatever.
00:40:47.039 -->
00:40:49.760It's just that it's really a challenge.
00:40:49.920 -->
00:40:55.199So one of the things that we like about Chattanooga is just the ease of getting around.
00:40:55.280 -->
00:40:55.440Yeah.
00:40:55.760 -->
00:40:58.480And um, you know, making the connections here.
00:40:59.760 -->
00:41:03.599Nobody asked me to be on a podcast in Atlanta, so I appreciate the opportunity here, Sam.
00:41:04.000 -->
00:41:04.639Absolutely.
00:41:05.119 -->
00:41:08.960You know, one thing that stands out, what's kept me here is the outdoors in Chattanooga.
00:41:09.280 -->
00:41:10.079I mean, it's a pretty city.
00:41:10.159 -->
00:41:12.719You know, you got Tennessee River running right through the middle of it.
00:41:12.800 -->
00:41:17.679And uh you've been down the river gorge or spent much time in there, ever taking a boat ride through the Tennessee River Gorge?
00:41:18.159 -->
00:41:28.320We were fortunate to go on the uh through there, the Sut Creek Road and get on the boat and go around past the uh the uh what's the visitor center?
00:41:28.480 -->
00:41:29.760Raccoon Mountain Visitor Center.
00:41:30.079 -->
00:41:30.239Yeah.
00:41:30.400 -->
00:41:33.440I'm still looking to get down into the visitor center.
00:41:33.519 -->
00:41:37.599There we visited the top floors, but I'd love to go down into the actual mountain basin.
00:41:38.239 -->
00:41:39.039I want to see that too.
00:41:39.440 -->
00:41:45.039That looks like like if there's someplace to hide a like a missile, I think it would be there, you know, like the James Bond film.
00:41:45.280 -->
00:41:46.559Because they have those tunnels that go in.
00:41:46.719 -->
00:41:59.679Oh and for those listening that don't know what we're talking about, it's a reservoir, a TVA Racing Mountain reservoir, and so they pump all that water up and it fills up the lake, and then the water rushes down flumes and spins turbines and it generates power during you know high peak cycles.
00:41:59.840 -->
00:42:05.119But when you're at the bottom of the mountain, you can look back into the mountain and they got those access tunnels at big gates.
00:42:05.199 -->
00:42:12.639And it looks like a James Bond, you know, like Goldeneye, I think, is one of the films that I think it'd be an ideal setting for a Chattanooga Founders Forum meeting in the future.
00:42:12.960 -->
00:42:17.440So anybody listening, please let us know and we'll uh see if we can put that together.
00:42:17.679 -->
00:42:20.079We've had we've done a couple of field trips as well.
00:42:20.159 -->
00:42:26.480So Tim Pearson gave the group a tour of Chattanooga whiskey, which was which was great.
00:42:27.039 -->
00:42:28.800And uh Did he let you drink off the still?
00:42:29.280 -->
00:42:29.679Did you get that?
00:42:30.000 -->
00:42:31.280I I'm trying to remember.
00:42:31.679 -->
00:42:36.480I think I think they gave a sample of uh what comes out of there to a few folks.
00:42:36.559 -->
00:42:36.639Yeah.
00:42:37.039 -->
00:42:46.719If he gives you the the white lightning, so to say, yeah, like the clear, clear, straight moonshine at that point out of the still, it's I don't know what proof, 120 plus, whatever it is.
00:42:47.039 -->
00:42:48.159It might take your memory away.
00:42:48.239 -->
00:42:49.280So he may have given it to you.
00:42:49.519 -->
00:42:50.480Yeah, I probably forgot.
00:42:50.639 -->
00:42:50.960Yeah.
00:42:51.360 -->
00:42:54.079But but there's so many interesting things like that going on here.
00:42:54.159 -->
00:42:55.360So that's that's interesting.
00:42:55.440 -->
00:42:58.800So I think your question was but what would the elevator pitch be?
00:42:58.960 -->
00:43:00.880Is this a place where you could focus on your business?
00:43:01.039 -->
00:43:04.239Is quality of life and focus on your business here?
00:43:04.400 -->
00:43:04.639Yeah.
00:43:04.800 -->
00:43:08.000So um, and you have the resource that you need.
00:43:08.239 -->
00:43:15.760One of the things that again, I'd like to say that we planned on this, but it's been a nice benefit of being here in Chattanooga.
00:43:16.000 -->
00:43:23.599It's two hours to Nashville, two hours to Knoxville, two hours to Birmingham or Huntsville, those areas, and can it's easy to get around.
00:43:23.760 -->
00:43:34.800And I I tell all my Atlanta buddies, I said, if I leave at six in the morning or ten uh in the morning, I can be at the Brave Stadium in Atlanta in 90 minutes.
00:43:34.960 -->
00:43:41.039It might take me 90 minutes more to get to the airport or buckhead, but I can be there at those times.
00:43:41.280 -->
00:43:50.079But it is um the for our personally, this is a great quality of life, and I think it's a great place to live.
00:43:50.159 -->
00:43:54.000And we're just delighted with the growing scene here.
00:43:54.320 -->
00:43:54.639Yeah.
00:43:54.960 -->
00:43:59.440I had um Charlie Brock on the podcast, hasn't released yet, but I guess that was last week, week before.
00:44:00.159 -->
00:44:02.000Week's kind of all run together at this point.
00:44:02.239 -->
00:44:06.719But um we're talking some about this corridor where quantum's concerned.
00:44:06.880 -->
00:44:12.719Because we have EPB here, we've got known for the fastest residential internet, um, and I can potentially commercial internet.
00:44:12.880 -->
00:44:15.199I don't quote me on that, but up to 25 gigs now.
00:44:15.679 -->
00:44:30.239But then they've now offered a quantum computer, so for um basically public access um to quantum computing, and us having Oak Ridge National Laboratory right up the road, you were kind of building this this corridor, not to mention the physical corridor of 24 and 75.
00:44:30.320 -->
00:44:36.000And you know, it seems like there's a lot of things that uh people don't realize Chattanooga is perfectly placed for.
00:44:36.159 -->
00:44:44.880You know, fast internet, plus we have electricity, uh, you know, TVA, and it's kind of a perfect setup for a lot of industries to really flourish here.
00:44:45.039 -->
00:44:47.679Uh logistics, uh computing.
00:44:48.079 -->
00:44:51.119I mean, I I I agree with you.
00:44:51.280 -->
00:44:56.800The the location isn't as important to start a business.
00:44:56.960 -->
00:45:02.400The it depends on what type of business it is in terms of getting the the ability to scale.
00:45:02.559 -->
00:45:11.840That's one of the things that I've heard from some founders here that are looking that have bigger workforces, but maybe with AI you don't need as big a workforce anymore.
00:45:12.000 -->
00:45:12.719So that's it.
00:45:12.880 -->
00:45:20.800The other thing, too, that we were advised five years ago when we got here is Chattanooga is a great place to go, but avoid the interstates if you can.
00:45:21.039 -->
00:45:21.360Oh, yeah.
00:45:21.599 -->
00:45:24.719That was before the 7524 interchange was built.
00:45:24.880 -->
00:45:25.519We'll see.
00:45:25.599 -->
00:45:33.679I know people sometimes it backs up, and you can see the strategic importance of Chattanooga during the Civil War.
00:45:33.840 -->
00:45:39.119If 24 does ever get back up, there aren't any alternate or many alternate routes around here.
00:45:39.360 -->
00:45:40.239Yeah, that's a good point.
00:45:40.320 -->
00:45:40.480Yeah.
00:45:40.719 -->
00:45:42.880So I'm not sure if I missed your question there or not.
00:45:43.679 -->
00:45:44.639It may have just been a statement.
00:45:44.719 -->
00:45:45.119I don't know.
00:45:45.360 -->
00:45:54.639That may have been but it but it is it uh it depends on what types of business you're trying to do, and there's it's constantly changing.
00:45:54.960 -->
00:46:02.239The other thing too is I'm a tech optimist, and uh we've used Waymo when we go to other cities and things like that.
00:46:02.320 -->
00:46:08.559So a lot of these things that are traffic issues now, they may not be if we get more autonomous vehicles.
00:46:08.719 -->
00:46:21.199Uh I think you have to talk with uh dynamo experts about the trucking business, how you know, if there if there's ways that they can help with that process and things like that.
00:46:21.440 -->
00:46:21.599Right.
00:46:21.840 -->
00:46:22.639The transportation.
00:46:22.719 -->
00:46:24.320So it's definitely transportation.
00:46:24.639 -->
00:46:25.039Gotcha.
00:46:25.280 -->
00:46:32.320So well, as far as uh you know, businesses that you're looking for, um and what's the best way for them to get a hold of you?
00:46:32.400 -->
00:46:37.119And you have uh or you want to find them or what uh no, no, I'm happy.
00:46:37.280 -->
00:46:47.760Um I have uh calendarly link on any email I've sent probably since 2018, where I reserve some spots in case a founder can reach out.
00:46:47.920 -->
00:46:56.880I'm always eager to talk with founders about their opportunities or just let people know about how the process works.
00:46:57.039 -->
00:47:01.760A lot of founders on me say you have a really interesting business, but this is not a candidate for risk capital.
00:47:02.000 -->
00:47:13.360If you do need money, there's other sources that could be better for you than going to angel investors or VCs because your business model is not gonna be a good fit for them.
00:47:13.519 -->
00:47:15.760Um and it's better to hear that now than later.
00:47:15.920 -->
00:47:21.199You don't need to raise capital if you're like I say the best place to get money is from customers if you can.
00:47:21.360 -->
00:47:21.679Yeah.
00:47:21.840 -->
00:47:24.639Uh so that was one part of the question.
00:47:24.800 -->
00:47:32.320What was the other oh um I guess getting a hold of you and you'll oh yeah, well, LinkedIn is good.
00:47:32.400 -->
00:47:34.880I haven't had a business card in many, many years.
00:47:34.960 -->
00:47:37.760Uh since pre-COVID, that's a good way to get in touch with me.
00:47:37.920 -->
00:47:48.400Uh, the if you're an early stage company with an MVP, minimum viable product, paid or unpaid pilot, that's a candidate for Atlanta Tech Angels.
00:47:48.480 -->
00:47:52.079And you can go to angelatlanta.com, there's an online application.
00:47:52.239 -->
00:47:55.199Or Venture South, they prefer a warm introduction.
00:47:55.280 -->
00:47:57.440They want companies a little bit later stage.
00:47:57.599 -->
00:48:12.880And so me, I do it, and my counterparts in the other 20 cities that uh Venture South is has chapters in, and the other members talk to founders and see if it's a good fit, and then we make a warm introduction to the people.
00:48:13.039 -->
00:48:18.000They they centralize the selection process in Greenville, South Carolina headquarters.
00:48:18.239 -->
00:48:21.760And so that's um so it's just part of the process.
00:48:21.920 -->
00:48:32.400So the other thing too is it's when I talk to founders, your pitch that we're talking about, the elevator pitch, yeah, that's your movie trailer, not your movie.
00:48:32.719 -->
00:48:33.039Right?
00:48:33.199 -->
00:48:41.280You want to get and you know, there's a whole science about movie trailers, and maybe you know, you're the marketing uh guru as well, you know how to hook people.
00:48:41.599 -->
00:48:47.119So the movie trailers are two minutes long and it's get you interested to watch a two-hour movie.
00:48:47.760 -->
00:48:50.400So the tip for founders is come up.
00:48:50.559 -->
00:48:58.719There's a Georgia Tech professor used to say that come up with a dozen words that will make somebody want to get in a plane to come visit you.
00:48:59.119 -->
00:49:01.199What is that the statement?
00:49:01.360 -->
00:49:07.199What's the what can you do to pique somebody's curiosity and interest so that they'll want to meet with you?
00:49:07.440 -->
00:49:09.760Because you talked about the process earlier.
00:49:09.920 -->
00:49:15.039It's rare that investors will have a conversation with the founder, write a check right away.
00:49:15.119 -->
00:49:24.960There's a whole diligence process that you go through that can take weeks or up to a couple of months, depending on how involved it is and how late stage the company is.
00:49:25.280 -->
00:49:33.199So make the connection and hook the audience and then you know, get get your movie trailer and then do the movie.
00:49:33.599 -->
00:49:34.719Do you have anything?
00:49:34.880 -->
00:49:37.599That's really good advice, by the way, um, especially the hook part.
00:49:37.679 -->
00:49:38.719You know, a lot of people miss that.
00:49:38.880 -->
00:49:39.920That's a challenging part too.
00:49:40.239 -->
00:49:45.280That's something uh every we struggle with, you know, we it's always well people are scattered.
00:49:45.440 -->
00:49:48.239They're there their attention spans are all over the place.
00:49:48.480 -->
00:49:58.559The if you now that we're on email, if you get emails from me sometimes, you might get the subject line be two things, and number one's a bullet point, number two is a bullet point.
00:49:58.639 -->
00:50:02.880Um going back to Kevin Kelly again, he says always put a deadline on everything.
00:50:03.280 -->
00:50:11.440So that way you know, I'll get an if you're if you're a founder and you want to reach out to me, suggest a time for coffee.
00:50:11.599 -->
00:50:13.679Don't say let's get coffee the next two weeks.
00:50:13.760 -->
00:50:16.480Say, are you available next Friday at 2 p.m.
00:50:16.639 -->
00:50:17.280or 3 p.m.?
00:50:17.519 -->
00:50:42.480Yeah and that starts the conversation because it's just a uh you want to make sure that you use your time wisely and and open-ended give me a uh and and if I'm not available at two or three on that Friday, I will propose another time that might be, but just kind of think of it in terms of the audience, what the person receiving on the receiving end is looking for.
00:50:42.880 -->
00:50:43.840Like a call to action.
00:50:44.000 -->
00:50:44.239Yeah.
00:50:44.480 -->
00:50:46.000Keep keeping moving forward.
00:50:46.159 -->
00:50:47.119Yeah, I like that.
00:50:47.280 -->
00:50:49.039All right, I got something fun I want to try here.
00:50:49.280 -->
00:50:49.519Okay.
00:50:49.599 -->
00:50:50.000Uh oh.
00:50:51.760 -->
00:50:54.239I'm gonna ask, ask my Claude.
00:50:54.639 -->
00:50:57.039Oh nothing nervous.
00:50:57.119 -->
00:50:57.920Hold on.
00:50:58.159 -->
00:51:02.239Uh so okay, let's see what it comes up with.
00:51:02.559 -->
00:51:04.400We're gonna do like a lightning round of questions.
00:51:04.639 -->
00:51:04.960Oh, okay.
00:51:05.199 -->
00:51:05.599Just real short.
00:51:05.920 -->
00:51:06.559Hands on the bezer?
00:51:06.800 -->
00:51:07.360Yeah, right.
00:51:07.519 -->
00:51:14.880All right, so I'm gonna ask it for uh Sam keeping score over here.
00:51:15.679 -->
00:51:16.400She better be.
00:51:16.559 -->
00:51:16.719Okay.
00:51:17.039 -->
00:51:19.280Making notes of the fun things we said.
00:51:20.239 -->
00:51:21.679Lightning round questions.
00:51:27.599 -->
00:51:29.679Alright, I'm always curious what it's gonna come up with.
00:51:29.920 -->
00:51:31.440Oh it's thinking.
00:51:31.599 -->
00:51:34.880It's burn it's cutting down trees right now, so I can five questions.
00:51:35.440 -->
00:51:40.559All right, so what is one book that changed the way you think about business?
00:51:41.519 -->
00:51:42.800One book.
00:51:43.119 -->
00:51:45.199You know a lot of books too from the last time he met us.
00:51:45.760 -->
00:51:48.159Well, I'm gonna do the free association thing.
00:51:48.320 -->
00:51:54.000The money ball movie is great for anybody that wants to get into startups or investors.
00:51:54.159 -->
00:52:09.760Because if you remember the scouts sitting around the this is the way they used to do it, and he's got a baseball body or he's got an ugly girlfriend, or all these qualitative things, how they try to talk about baseball players, and they come in and put a more scientific rigor around it.
00:52:09.920 -->
00:52:14.480And uh was it Brad Pitt's characters, you know, adapt or die for the old scout.
00:52:14.639 -->
00:52:27.440So that's a book that comes to mind when I think about not business in general, but that's the first one that popped in my head about if you'll be an angel investor, uh, read or moneyball or watch the movie.
00:52:27.760 -->
00:52:28.079Okay.
00:52:28.400 -->
00:52:28.880All right.
00:52:29.199 -->
00:52:32.079Because you have to you have to change the way you think about things.
00:52:32.400 -->
00:52:32.960All right.
00:52:33.679 -->
00:52:37.119Uh best piece of advice you have ever received.
00:52:38.719 -->
00:52:39.599I've ever received.
00:52:39.840 -->
00:52:55.840I'm always swayed by the the recent podcast that I look at, and there's one that uh I think I said this with the knowledge project, and they talked about this was the founder of Container Store.
00:52:56.079 -->
00:53:01.360The piece of knowledge is communication is leadership.
00:53:01.760 -->
00:53:19.280So if you're working with other folks or groups, whether they're direct reports or colleagues like I have, let the let them know what's going on and uh sooner rather than later, and just keep them updated because people don't know what's going on.
00:53:19.440 -->
00:53:24.639And and even the an example of this from somebody here in Chattanooga that gave me a book.
00:53:24.800 -->
00:53:30.239If you're running late for a meeting, send somebody, hey, I think this meeting's running later, I may be five or ten minutes late.
00:53:30.480 -->
00:53:32.880Once you do that, you're no longer late.
00:53:33.280 -->
00:53:36.000So that falls under that communication is leadership.
00:53:36.239 -->
00:53:37.119Yeah, that's good.
00:53:37.199 -->
00:53:37.920I like that.
00:53:38.559 -->
00:53:42.960What is one tool or app you cannot run your business without?
00:53:44.320 -->
00:53:49.119Um uh app I can't run my business without.
00:53:49.280 -->
00:53:53.199Well, one of the things now I'm in the making connections thing, so LinkedIn.
00:53:53.519 -->
00:53:54.400I've used LinkedIn.
00:53:54.480 -->
00:53:58.239I mentioned before I haven't had a business card probably since 2018.
00:53:58.639 -->
00:54:01.679So I just use LinkedIn as a way to connect.
00:54:01.920 -->
00:54:10.559We're talking before about uh probably have to update my LinkedIn profile more up to date, but that's a place where you go.
00:54:10.719 -->
00:54:13.440We're talking about your your elevator pitch there.
00:54:13.679 -->
00:54:15.440Um it starts there.
00:54:15.519 -->
00:54:18.320That's the way that you present yourself on on social media.
00:54:18.480 -->
00:54:36.400So um it's also I found uh John Doors, a VC that was very successful and influential at Kleiner Perkins, and his statement was ideas are easy, execution is everything, it takes a team to win.
00:54:36.559 -->
00:54:39.599And when I saw that, that's kind of like business haiku for me.
00:54:40.320 -->
00:54:42.639So I I post it everywhere on my social media.
00:54:42.960 -->
00:54:47.199So I probably rely on LinkedIn too much, but don't send me email there.
00:54:47.440 -->
00:54:49.360Send me an email to my email address, please.
00:54:49.760 -->
00:54:50.719All right, noted.
00:54:50.960 -->
00:54:56.000Uh if you can go back and tell your younger self one thing before starting out, what would it be?
00:54:57.280 -->
00:55:05.920Oh my younger self is um make the connection, take the risk.
00:55:06.079 -->
00:55:10.159Um there's a great uh this was another podcast recently.
00:55:10.400 -->
00:55:19.920One of these overarching principles is um, and they call it in the startup community, it's called go first, but go first and be positive.
00:55:20.239 -->
00:55:20.559Okay.
00:55:20.800 -->
00:55:22.159Okay, to make the connection.
00:55:22.320 -->
00:55:28.880You know, you sit back or um your younger self, I was always worried about looking silly or foolish.
00:55:28.960 -->
00:55:32.800And now that I'm older, I realize I've been silly and foolish the whole time anyway.
00:55:32.880 -->
00:55:34.960So might as well just go ahead and ask the question.
00:55:35.039 -->
00:55:36.000It might lead to something.
00:55:36.239 -->
00:55:38.159Yeah, that's great, great advice.
00:55:38.320 -->
00:55:41.119I know that feeling of yeah.
00:55:41.679 -->
00:55:42.000All right.
00:55:42.639 -->
00:55:54.079No, I was gonna say, I I get to work with uh these analysts and I tell them uh uh you if you think something's a silly question and it's not, go ahead and ask it because I've asked a lot sailer questions than you could ever think of.
00:55:54.400 -->
00:55:59.360So go first and be positive is a great one that I recently got off of a podcast.
00:55:59.679 -->
00:56:00.000Okay.
00:56:00.639 -->
00:56:01.840All right, last one.
00:56:01.920 -->
00:56:05.679Uh what does success look like to you five years from now?
00:56:07.679 -->
00:56:08.559That's a great question.
00:56:08.800 -->
00:56:10.800Well, I enjoy what I'm doing now.
00:56:10.880 -->
00:56:13.840I don't have a boss, it's permissionless.
00:56:14.079 -->
00:56:18.639So it would be nice to have um let me back up.
00:56:18.880 -->
00:56:27.119Angel investing has been intellectually rewarding because we learned about these new technologies and new business models and all kinds of intriguing founders.
00:56:27.280 -->
00:56:32.639Uh it's emotionally rewarding, like when Ryan Sieberg gets some money and gets his thing going.
00:56:32.800 -->
00:56:34.559Uh financially rewarding.
00:56:34.880 -->
00:56:36.159Jerry's still out on that.
00:56:36.320 -->
00:56:42.800So I am uh I think Will Rogers was the one where I've I saw the quote first.
00:56:42.880 -->
00:56:48.159He says, I'm not worried about return on capital, I'm worried about return of capital.
00:56:48.400 -->
00:56:51.440So if I can get my money back and keep playing the game, that'll be good.
00:56:51.519 -->
00:56:56.960So in five years from now, if I'm still playing the angel investing game, that will be success.
00:56:57.039 -->
00:57:03.519In in terms from a business standpoint, there's all kinds of other success in terms of other personal types of measures.
00:57:03.599 -->
00:57:08.559But in terms of this, it's really intriguing to I mean, it's fascinating.
00:57:08.719 -->
00:57:12.000And there are people that are changing things all the time.
00:57:12.079 -->
00:57:18.559And uh again, I'm techno optimist, so I think there's gonna come up with things that we can't even imagine uh now.
00:57:18.880 -->
00:57:19.360Oh, yeah.
00:57:19.440 -->
00:57:22.320Um absolutely, especially if AI is gonna expedite everything.
00:57:22.639 -->
00:57:25.920Well, I mean, just look, people uh it it's fun.
00:57:26.400 -->
00:57:28.400I had a call with a founder.
00:57:28.559 -->
00:57:31.840This is popped my head, free association bonus question.
00:57:32.239 -->
00:57:46.400Um, and she said, I had to we were having a conversation, she's outside the US, and she said I had to uh drop off and go on my hotspot because the internet uh on the Zoom failed here.
00:57:46.559 -->
00:57:46.880Yeah.
00:57:47.119 -->
00:57:51.280And this was 2020, there's a couple of like a year and a half ago.
00:57:51.519 -->
00:57:55.760I said, if we were in 1990, uh 2019, no one know what we were talking about.
00:57:55.920 -->
00:57:56.159Right.
00:57:56.320 -->
00:57:59.199And just look how quickly we adapted to all these other things.
00:57:59.360 -->
00:58:03.599So five years from now and 2031, who knows what?
00:58:03.760 -->
00:58:17.360We um I may be talking to a holographic um Sam, and you may be on your island someplace and just you know have a what do they call it, the volumetric video is the five-year plan.
00:58:17.519 -->
00:58:19.440Yeah, so you sold me at the island part.
00:58:19.920 -->
00:58:23.840You you'll have your Spectrus worldwide headquarters or whatever from space.
00:58:24.079 -->
00:58:24.960So I don't know.
00:58:25.119 -->
00:58:30.480But it's uh it's it's interesting, and I enjoy doesn't feel like work.
00:58:30.800 -->
00:58:31.119Yeah.
00:58:31.199 -->
00:58:31.920Well, good.
00:58:32.239 -->
00:58:37.119Well, I know we kind of jumped around here, um, but I I've enjoyed talking with you about all this.
00:58:37.280 -->
00:58:47.039There's plenty more things I want to pick your brain about, and maybe it's the second podcast, but is there anything that I missed that you wanted to say for well I think again I'm always swayed by the last uh podcast I listened to.
00:58:47.119 -->
00:58:50.159I listened to a recent podcast, and this is advice for founders.
00:58:50.320 -->
00:58:54.159You know, we say position your product and follow your customers and things like that.
00:58:54.400 -->
00:58:59.360Um Jeff Bezos started Amazon, what, like 1990s or something.
00:58:59.679 -->
00:59:03.679He knew that he wanted to do the everything store.
00:59:03.760 -->
00:59:05.039That was always his vision.
00:59:05.199 -->
00:59:06.639But he started with books.
00:59:06.880 -->
00:59:08.320Why'd he start with books?
00:59:08.559 -->
00:59:16.960Books are easy to ship, um, they don't break, they don't spoil, you know, they don't need repairs, they rarely get returned.
00:59:17.119 -->
00:59:21.440So just think about what he's built Amazon into, but he started with books.
00:59:21.599 -->
00:59:28.079So now when I meet with founders, I haven't listed that podcast a couple weeks ago, I'll say, what is your equivalent of books?
00:59:28.239 -->
00:59:31.039What is the equivalent of shipping books for your business right now?
00:59:31.199 -->
00:59:36.880Don't, you know, I'll meet a founder that's gonna use AI to change the real estate market.
00:59:36.960 -->
00:59:44.639And I'll say, Well, have you met Gumption, the folks here in Chattanooga that are matching the commercial lenders with the people with commercial properties?
00:59:45.039 -->
00:59:46.320Oh no, that's really interesting.
00:59:46.559 -->
00:59:58.480So uh think about if you're a founder and you've got a business idea, and I don't want to dampen your enthusiasm anyway, but what can you do that is like uh Amazon starting with books?
00:59:58.800 -->
01:00:05.440Because that that's where the that's the first step that they took to build the one of the premier companies here in the in the world.
01:00:05.679 -->
01:00:06.559Oh yeah, yeah.
01:00:06.800 -->
01:00:07.679It's great advice.
01:00:07.760 -->
01:00:09.360It's something that struggle with still.
01:00:09.440 -->
01:00:09.519Yeah.
01:00:09.920 -->
01:00:10.719We we knew it.
01:00:10.880 -->
01:00:14.000We know Amazon started as a even when you're like 10 years old.
01:00:14.239 -->
01:00:14.639Yeah, right.
01:00:15.039 -->
01:00:17.840Probably knew that Aventhod was uh because that's how they started.
01:00:17.920 -->
01:00:20.159But why did they start that way and think about it?
01:00:20.239 -->
01:00:31.519And that's just one of those ones that you have to say, um, you know, this is this there's a path that can make you more successful than others, and that's one.
01:00:31.679 -->
01:00:35.360So simplify where you can, and most important things get traction.
01:00:35.599 -->
01:00:45.119Yeah, I mean it simplifies every part from your go-to-market strategy, you know, your ad dollars, the target demographic you're going after, your messaging, you know, websites, all of it.
01:00:45.199 -->
01:00:46.320It makes it much more simple.
01:00:46.559 -->
01:00:48.000So so what can I do to help you?
01:00:48.079 -->
01:00:49.920What's your ideal customer profile look like?
01:00:50.000 -->
01:00:53.599So if I run across somebody to send a spectrus.
01:00:53.920 -->
01:00:55.360You know, that is a very good question.
01:00:55.440 -->
01:00:56.639It's something we're struggling with.
01:00:56.719 -->
01:00:58.000Is exactly what you're talking about?
01:00:58.159 -->
01:01:00.880And because originally we started out building websites, and that was kind of a niche.
01:01:00.960 -->
01:01:02.079All we did was just websites.
01:01:02.159 -->
01:01:19.119And I had a buddy who built skyscrapers, um, and he uh and made a bunch of money in Atlanta building big buildings down there, and he told me he's retired now, and he told me he's like, if you want to uh make money in Chattanooga, you can't be a skyscraper builder because we don't build one every 40 years or none at all, because we don't really have any true skyscrapers.
01:01:19.280 -->
01:01:21.039So you've got to be a generalist contractor, right?
01:01:21.119 -->
01:01:24.320Or maybe residential or commercial, but generalist basically.
01:01:24.639 -->
01:01:27.599Uh in Atlanta, if you're a generalist contractor, you'll just blend in.
01:01:27.679 -->
01:01:29.599So you gotta be a specialist in something, right?
01:01:29.840 -->
01:01:30.719And niche down.
01:01:31.440 -->
01:01:34.559And over the years, 14 and a half years, we haven't really niche.
01:01:34.880 -->
01:01:39.760We tried one of the aesthetic marketing partners and niched on that, but wound up not really the med spa.
01:01:40.079 -->
01:01:53.599Med spa was kind of some of our target, and that got so um volatile there for a while that we wound up it's still out there and it still brings us in leads, but long story short, the full service marketing advertising without one niche, it's kind of been a challenge.
01:01:53.679 -->
01:01:56.800We have verticals like home services, we have a lot in home service businesses.
01:01:57.199 -->
01:02:02.239Um we've become very good at those, and like lead generation is a the main part they need.
01:02:02.320 -->
01:02:05.679But then as they grow and become bigger, they also need brand building, brand trust.
01:02:05.760 -->
01:02:11.199You know, you look at some of the big players like Hiller and those types of businesses, they do a great job at everything.
01:02:11.280 -->
01:02:15.760You know, um or AFS, you know, a lot of these are becoming giant companies.
01:02:16.639 -->
01:02:22.000Um so that's one that home services, we have campaigns running for that, and that's one of the verticals we're focusing on.
01:02:22.079 -->
01:02:27.519But at this point, we've worked in you know, some regard with over 250 companies all across the board.
01:02:27.920 -->
01:02:39.119Um we've kind of found our, to be honest, found ourselves lost uh from time to time of like, well, we can work with anyone, but how do you market to anyone, you know, or market advertising company?
01:02:39.199 -->
01:02:41.199And so that's something we're always working on.
01:02:41.280 -->
01:02:51.840And you know, we we have our main site that's kind of a little more generalized, but then we spend our ad dollars focused on one vertical at a time and go after go after those.
01:02:52.000 -->
01:03:10.880So long answer, shorter, um we look for companies that want to grow, motivated to grow, they have some sort of growth goal in mind, and then we want to pair whatever they need uh within our wheelhouse, which is you know marketing advertising, um pair what they need to get to that goal.
01:03:10.960 -->
01:03:18.000So if it's 30% increase in revenue in 18 or 24 months or whatever the number is, which that's lofty, um depending on where they're at.
01:03:18.159 -->
01:03:21.280Um, it's more conservative at eight to ten percent growth.
01:03:22.000 -->
01:03:28.079Um so doing an assessment for them, understanding where they're at, looking for opportunities, and then helping them reach that goal.
01:03:28.639 -->
01:03:33.039Well, home services seems like one of the later places where robots will take over.
01:03:33.760 -->
01:03:41.920It's where private equity is really looking right now because uh there's also a lot of opportunities with systems and operations and you know lack of scalability for a lot of them.
01:03:42.400 -->
01:03:49.519Um so we've seen a lot of our clients get bought up by PE and then merge those together and a lot of opportunity to make money.
01:03:50.079 -->
01:03:50.960Economies to scale.
01:03:51.119 -->
01:03:51.920Well, interesting.
01:03:52.159 -->
01:03:53.519Well, best of luck to you.
01:03:53.599 -->
01:03:55.039Thank you so much for this opportunity.
01:03:55.360 -->
01:03:56.000Thanks for coming on.
01:03:56.079 -->
01:03:57.119It's great chatting with you.
01:03:57.599 -->
01:04:01.119Um look forward to attending uh some more of your networking events coming up.
01:04:01.519 -->
01:04:06.559Well, we got June 16th at the arena, it will be the next uh Chattanooga Founders forum.
01:04:07.039 -->
01:04:07.920So awesome.
01:04:08.159 -->
01:04:10.800And if anyone wants to finally look you up, and we'll we'll put it in the description as well.
01:04:10.880 -->
01:04:16.719But Jay Schaefer on LinkedIn and um probably best place or email.
01:04:22.880 -->
01:04:24.000For anybody listening.
01:04:24.800 -->
01:04:25.440Perfect.
01:04:25.679 -->
01:04:26.000Okay.
01:04:26.239 -->
01:04:27.599Well, thanks so much for the opportunity.
01:04:27.679 -->
01:04:28.320I appreciate it, Sam.
