Bootstrapping Using Services: Evariant CEO Bill Moschella (Part 5)

Sramana Mitra: Let’s say you do that segmentation and figure out where the gap is. Do you also handle stuff like Google PPC campaigns for them?

Bill Moschella: Yes. They can either use their own agency, do it internally, or use our media-as-a-service where they pay a subscription cost to the media and then we give them the projected lead generation. If you put this money, the Evariant engine will give you more predictable results because we’re using analytics from past campaigns and current campaigns. By the way, we already have the templates ready in our engine, so just pick the campaign, select the target market you want to go after, and we’ll start pointing them towards call centre web forms, mobile, etc.

Sramana Mitra: Very interesting, actually. What does a typical deal size look like for you when you’re working with a hospital? Is it a $100,000 recurring revenue in an annual account or is this a million dollar recurring account?

Bill Moschella: It varies. The market is made up of different-sized hospitals. There could be a small hospital in New York City or in San Francisco that could have a bigger marketing budget than the largest health system in the Midwest. It fluctuates. Average deal size can range from $150,000 to $200,000 a year all the way up to a million plus a year.

Sramana Mitra: How much penetration have you got in the industry at this point in this particular area?

Bill Moschella: Across the whole industry, it’s much smaller because there are 6,000 hospitals. If you look at the total addressable market that we’re going after, we’re starting to creep off into the double digits.

Sramana Mitra: What market are you trying to go after? What is your positioning?

Bill Moschella: We really have a top-down approach. We’re looking for those top health systems, delivery systems, and top academic medical centres. Just from a market perspective, they’re buying the smaller companies. You wouldn’t want to go to the bottom of the market who pays the least amount.

Sramana Mitra: Out of the 6,000 hospitals, how many fall in that target audience?

Bill Moschella: There are 400 global accounts that make up a few thousand of the 6,000. It’s 400 conglomerates.

Sramana Mitra: You raised money from this specialized group in New York in 2011. How much did you raise in that round?

Bill Moschella: I think it was around $5.3 million.

Sramana Mitra: Was that the only money you’ve raised or have you raised more money since then?

Bill Moschella: We raised a Series B last year from Lightspeed for $18.3 million. There were a few other investors that were also on board. Salesforce Ventures invested. One of our customers invested as well.

Sramana Mitra: So you’ve raised close to $25 million at this point?

Bill Moschella: Yes, pretty close.

This segment is part 5 in the series : Bootstrapping Using Services: Evariant CEO Bill Moschella
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