I’ve known Lonnie for several years now and I’ve watched him create iAssay, nurture it, and is now making some major headway with investors. It’s exciting to think about the journey he’s been on and how he’s kept going. Listen up for some great advice on how to incorporate your startup into family life as well as what investors are looking for NOW.
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Lonnie Adelman and iAssay are on a mission to test patients with any tests that are necessary to triage their condition. They’re working to do this in mere minutes.
What’s been valuable feedback from investors that’s enabled you to move forward?
Starting with a minimum viable product is key and it needs to be functionally validated. These days, investors aren’t usually interested in something unless it’s been validated. Occasionally you can get away with something if it’s really ground breaking.
Investors have been looking for pro formas and P&L’s in the pitch along with a pathway to liquidity in 3-5 years.
What investments are you seeking right now?
Lonnie is really focused on obtaining angel investment along with family office funding that has a social cause. This fit’s the iAssay model really well.
What is your value proposition?
iAssay saves company’s money by not having to drive blood to a lab anymore, it can be done in the clinic. It allows healthcare providers to see more patients and allows diagnosis to be immediate.
What is the biggest challenge you’ve faced?
Money. Fortunately he’s been able to raise some and that’s helped. Besides that, it was getting access to human blood and finding a lab to test in.
How have you been able to sustain your living pre-revenue?
He’s cut back on personal and business expenses and he and his wife have taken out of savings. He’s done consulting projects and hasn’t had a paycheck from a company since 2012.
What’s the best advice you can give to a medtech or diagnostics startup?
Keep your day job if you can and start setting up the underpinnings of your business on your own time totally separate from work. Check your employment contracts first to make sure your employer won’t own your IP.
Get buy in from your spouse. Make sure they know what you’re getting in to.
You need to really want the business to take off. If people tell you it’s not going to work, don’t listen to them.
What have you done to keep yourself motivated?
The need to win….he’s very competitive. When he gets investors to sign on the dotted line, it motivates him to get to the next level.