Equity Financing from Customers: Modernizing Medicine CEO Daniel Cane, Boca Raton, Florida (Part 6)

Sramana: This is one of the few stories I have heard where this type of fundraising has taken place. It is wonderful, and it makes perfect sense. You have converted customers into very serious evangelists.

Daniel Cane: Exactly. The company has done well financially, so I think everyone is happy with the outcome. Raising money has never been a problem here. The product and value proposition are so different from anything else out there, and we get to layer on a bunch of enthusiastic investors. It is a great situation.

Sramana: What is your customer acquisition strategy? Obviously, word of mouth is a big deal. What else do you do?

Daniel Cane: We have done trade shows, dinners, AdWords, and the like. The most effective of all is word of mouth. You just can’t call a doctor. They have designed their lives to be insulated against folks selling them things. Having a peer recommend a product is the most effective method. We are only a two-and-a-half-year-old company. There has not been much time to do anything else.

Sramana: Is the company running profitably now?

Daniel Cane: We will become profitable this year, but the focus was on top-line growth.

Sramana: How much revenue do you anticipate bringing in this year?

Daniel Cane: I am confident that we will be well over $20 million.

Sramana: Do you expect to raise more money this year?

Daniel Cane: We don’t need to, which makes it the perfect time to potentially entertain it. There are a number of complimentary lines of business, so I am in the process of writing business plans for new Modernizing Medicine business areas and we would need new capital to execute those business plans.

Sramana: Can you talk to me a bit about the competitive landscape?

Daniel Cane: Our closest competitors are big medical documentation companies. There really is not a company like us. There are iPad EHR companies, but they are one-size-fits-all, which means they don’t work for anyone.

Sramana: What else is interesting in your entrepreneurial journey? What’s unique about your perspective?

Daniel Cane: Over and over you will find that companies that focus on a profitable niche do quite well. I am shocked that in the landscape of EHR only a handful try to cater to a specialty and do it well. I think my journey is the same as most others in that we all look for a niche to fit in and fill.

This segment is part 6 in the series : Equity Financing from Customers: Modernizing Medicine CEO Daniel Cane, Boca Raton, Florida
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