Tech start up success: focus on relationships first, then technology
Michael Pliskin co-founded MedM, a company determined to improve quality, increase access, boost efficiency, and lower the costs of healthcare. Since its start up, MedM has grown to about 15 employees and generates approximately $300,000 in annual revenues. MedM specializes in mobile patient monitoring and medical device connectivity software. Their products include Patient and Caregiver Apps and the MedM Hub, an industry-first affordable cellular-enabled home health hub. Given the complex challenges of the 21st century, these kinds of innovations are invaluable in the health care industry.
Michael says one of MedM’s biggest challenges has been receiving timely payments from customers. C2FO has helped MedM overcome that challenge by dynamically shortening the time between invoice approval and the payment date (payment term). By having faster access to capital, the business now has better control over their cash flow and can fund R&D without tapping into their line of credit.
“I am very happy with C2FO, which has had a tremendous impact on our company’s capital needs,” he says. “We need money to fund R&D and we don’t want to use our line of credit. Since we are a company with a long production cycle, faster payments enable us to better control our cash flow. Getting paid faster has allowed us to work with major vendors without burning our reserves.”
In the future, MedM’s primary goal is to “land more customers,” and Michael feels confident that his company’s relationship with C2FO will help make that happen. Michael believes that “relations and people are what make technology work, not the other way around.”
- Receiving timely payments from customers
- Need money for R&D without tapping into line of credit
- Because of long production cycles, MedM needs faster payments
Why we use C2FO:
- MedM needed control of cash flow to fund R&D and a long production cycle
- Control of cash flow prevents MedM from having to use their line of credit
- Access to working capital helps MedM with vendor partnerships and market expansion
“I am very happy with C2FO, which has had a tremendous impact on our company’s capital needs. We need money to fund R&D and we don’t want to use our line of credit.”
— MICHAEL PLISKIN, CO-FOUNDER AND CEO, MEDM AMERICA