Latest / The Advancing Healthcare Innovation Show / E201: She’s Seen Thousands of Startups. Here’s What the Best Founders Do Differently

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E201: She’s Seen Thousands of Startups. Here’s What the Best Founders Do Differently · The Advancing Healthcare Innovation Show

0:10
Hello and welcome back to the Advancing
0:12
Healthcare Innovation Show. I am your
0:15
host, Michael Stamatinos, and if you're
0:17
new to us, welcome. Super pumped to have
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you here because we have some incredible
0:22
conversations with real leaders that are
0:24
impacting and changing the trajectory of
0:26
healthcare. If you haven't been with us
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0:31
step back to tell you a little bit more
0:32
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0:35
few different areas of healthcare. We're
0:37
passionate about access, about
0:38
innovation and transformation and
0:41
leadership. And our objective is to find
0:45
these real leaders that are that are
0:47
really actually making stuff happen and
0:49
then giving them the opportunity to
0:51
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0:54
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0:56
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1:00
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1:10
Okay? super super pumped about this
1:12
conversation for a few different
1:13
reasons, but one a few weeks ago. I
1:16
don't know how many weeks ago it was,
1:17
but it was a little while ago. Um, I got
1:19
a tour of MHUB and I meant like I walked
1:23
it, saw shops and the labs and startups
1:28
actually building physical products uh
1:31
right there in front of me. And um it
1:34
was a lot like in a good way. And
1:37
because when you're thinking about
1:39
innovation and what it looks like,
1:42
sometimes it's not just an app. It's not
1:44
just like a piece of software or a
1:46
really nice slide deck. It's it's an
1:48
actual piece of hardware, a prototype.
1:52
Um actual things getting built by hand
1:56
or by machines just a few feet away from
1:58
you. And Melissa Letterer, the chief
2:01
experience officer at MHUB, was the one
2:04
that was giving me this tour and her
2:06
energy throughout the tour was just it
2:10
was very inspiring. So, I thought we
2:12
would geek out today to talk about a
2:15
number of different things. But the
2:17
reason why I think her coming on the
2:20
show is so special is because she has
2:22
had a front row seat to something that
2:25
most people never experience and that is
2:29
building an ecosystem from zero.
2:33
She was part of the founding team at
2:35
1871. She helped create what became I
2:38
think one of the most recognizable
2:39
technology communities in the country.
2:42
She then helped shaped matter which was
2:45
bringing together healthcare
2:46
entrepreneurs, health systems, industry
2:48
leaders um to advance healthcare
2:50
innovation. And now she's at them. She's
2:53
helping founders um who are building
2:55
incredibly difficult things, physical
2:57
products, medical devices like other
3:00
types of hard technologies that require
3:03
resources. Uh they require capital and
3:07
quite honestly they require the right
3:09
relationships. And I think what's
3:11
fascinating about Melissa's journey, uh,
3:13
she's not only just a super connector,
3:15
but she knows how to build this
3:18
infrastructure behind innovation, you
3:20
know, basically where these rooms that
3:22
you create where founders meet their
3:24
first champions, where those
3:26
introductions turn into like a real
3:28
partnership and maybe even where a
3:30
prototype turns into turned into a
3:32
company. So, I've been thinking about
3:34
this conversation for a long, long time.
3:37
And then I found Bissa and I was like,
3:40
"Oh my gosh, I now have someone that I
3:44
can geek out with on this stuff."
3:45
Because innovation is not a solo sport.
3:48
It is a team sport. I deeply, deeply
3:51
believe this. And the best founders to
3:53
me, uh, the ones that are most
3:55
successful know that they're not doing
3:56
it alone. They're successful because
3:58
they've found someone along the way to
4:00
help them kind of move things along. And
4:03
Melissa spent her entire career, well
4:06
not entire, maybe the vast majority of
4:08
her career building these environments.
4:10
So I'm excited to hear more of her
4:12
story. So Melissa, great to see you.
4:16
Welcome to the show.
4:18
>> Wow. Um, thanks Michael. I mean, that
4:20
was a that's a nice intro. Um, I love
4:22
geeking out with other people, so this
4:24
is fun.
4:25
>> Um, and I'm I'm proud and still
4:29
passionate about what I do. So, the fact
4:31
that you said I had energy, that's what
4:33
I like, you know, I feel it. It's not
4:35
it's not fake. It's not contrived. I
4:37
genuinely
4:39
>> love um what I do. I love building
4:43
community and um supporting early
4:46
innovation and like I'm blessed to wake
4:49
up and do this every day. It's really
4:51
fun,
4:52
>> you know. Um before we like dig in, I I
4:55
read something about you a while back.
4:58
Um, it said you grew up in, you know, it
5:00
said you grew up in a good way. You grew
5:02
up in a small town.
5:03
>> Yeah.
5:03
>> Uh, you basically, you know, built
5:05
around this one GE plant. Is that is
5:09
that still true or did I get destroyed
5:11
around?
5:11
>> Um, it was a little little different.
5:13
Uh, so I actually grew up in Flint,
5:15
Michigan, which may or may not be what
5:18
you remember. Um, you know, not a tiny
5:21
town, but certainly infamous or famous
5:24
for a variety of reasons. Uh it was
5:27
built around this GM town. It was Buick
5:29
city capital of the world when I was
5:31
when I was younger. Um you know what did
5:34
we know about in in innovation but I
5:37
certainly knew about industry and indust
5:39
the industrial sector the automotive
5:40
industry for sure. That was like where
5:42
you know friends and family cut their
5:45
teeth for sure.
5:47
>> So when just sort of looking back at
5:49
that I'm curious to who were you growing
5:52
up? What were you like? Who influenced
5:54
you? Um, how did you kind of get on this
5:57
path?
5:58
>> You know, it's interesting. I um I'm an
6:02
extrovert. I don't think it's hard to
6:05
can't see it through the see it through
6:07
the screen, but uh everything I've
6:09
always done is love being sort of front
6:11
and center and talking to people and
6:12
being out and and um I thought I'm going
6:15
to go into entertainment and the
6:17
entertainment industry. I'm going to go
6:18
but I want to be in the back end. I want
6:20
to be in public relations. I want to be
6:22
telling people's story. I like spinning
6:24
up a story. Um, and you know, I really
6:28
thought that I just needed to be in a
6:30
fast-paced, fastmoving, like high energy
6:34
industry and entertainment I was
6:36
obsessed with. It always seemed, it
6:38
always seemed cool. Um, and I went to
6:41
school for journalism. I went to
6:42
University of Wisconsin journalism.
6:44
Again, I was like going to do something,
6:45
you know, very front. Uh, and when I
6:49
graduated, I'm like, I'm going to the
6:50
entertainment. I'm moving to New York.
6:53
And uh it was a terrible year for the
6:56
economy. There were not a lot of jobs to
6:58
be had. And I set my resumes out and did
7:01
all of that, but nothing was coming to
7:02
fruition. So I moved to Chicago because
7:05
my brother was living here and I needed
7:06
a place to stay. And I spent about six
7:08
months looking for that entertainment
7:09
job, which I never found.
7:11
>> And a friend had a had a role at a PR
7:13
agency and she was doing technologybased
7:16
public relations and I knew zero about
7:19
anything related to technology. We're
7:21
talking '9s. Um, not to date myself, but
7:24
the early 90s in fact. And, uh, I took
7:28
this job not knowing anything, but like
7:30
cut my teeth on it, learned, figured out
7:31
what we were doing, how do we sell a,
7:33
you know, a new software app and all
7:34
these different things.
7:36
>> But I still loved being that front
7:38
person telling the story, showing up at
7:40
conferences and sitting on a panel and
7:42
doing those things. And I honestly think
7:44
that that like that sort of helped me
7:46
understand how to talk to people, how to
7:49
um how to be a frontman for someone, how
7:52
to tell that story and and think about
7:54
really like in all the ways I did it was
7:56
like okay well how can this help that?
7:58
How do you do this to do that? It was
8:00
like a domino effect of how things can
8:03
move forward by creating the right
8:06
connections. That's really what I think
8:07
has been my entire career. Um, but
8:10
really technology I fell into and I just
8:13
I think I was early into the game when
8:15
it you know when when we when I started
8:18
I went to San Francisco. I opened an
8:20
office there. We were you know
8:22
representing a bunch of technology
8:23
companies. Um and honestly it just I
8:28
played to sort of what I thought I was
8:29
good at. I like talking to people. I
8:31
like learning about people. I always
8:33
joke that like of the leadership team
8:34
here at MUB I'm the EQ person. you know,
8:38
I can kind of get people and then figure
8:41
out how what makes them tick and then
8:42
how to think about using that. Um, and
8:45
so much is true when you think about
8:46
founders and and entrepreneurship and
8:48
how to, you know, how can founders and
8:50
leaders be successful. So, I know that's
8:53
that was a meandering path to to answer
8:55
your question, but it's that's how here
8:57
I am.
8:58
>> I'm even just thinking because you've
8:59
had so many cool different tours of
9:01
duty. So, when I think about like 1871,
9:05
when you were helping build 1871,
9:07
>> Yeah.
9:07
>> did you did you like know at the time
9:09
how like how special it would become or
9:12
was it like chaos behind the scenes and
9:15
everyone was just like trying to figure
9:16
out?
9:17
>> Um, a it was for sure uh chaos behind
9:20
the scenes trying to uh figure out.
9:22
I think um first of all I didn't accept
9:24
it right away and uh former former um
9:28
friend and and boss said you got to look
9:30
into this like we're gonna build this
9:32
innovation center and you know our now
9:35
governor JB Pritskar was part of it and
9:36
it was this idea on a back of a napkin
9:38
how do we keep all of this incredible
9:40
talent that's that's here right coming
9:43
out of our universities before they go
9:45
to the coast and build their businesses
9:47
>> and um and so I was like I don't what
9:52
does that mean? You know, so we did it
9:54
and I I was f first of four four folks.
9:56
Kevin Willer was the CEO at the time and
9:59
he talked me into coming on and I was
10:01
just going to do it as a consulting gig
10:02
to figure it out. But and we didn't know
10:05
we opened the doors honestly. We had no
10:06
fanfare really in opening the door. We
10:08
didn't have like Mayor Rahm Emanuel
10:10
didn't come. The governor didn't come on
10:11
the first day. Like we didn't have a big
10:12
press conference. It wasn't that big of
10:14
a deal. We were like, "Okay, we're gonna
10:16
have a press conference. Oh, it never
10:17
came together. Well, we won't have them.
10:18
We'll just open our doors and kind of
10:20
get started."
10:20
>> Yeah. Um, and it just it just kind of
10:24
hit pretty quickly. Like it was a little
10:26
bit of magic in a bottle. The ecosystem
10:28
was ripe here. There was a ton of um
10:33
early innovators who were looking for a
10:35
place, a community, you know, um that
10:38
they could travel that journey with
10:39
together. And nothing existed like it
10:42
anywhere. if you were coming out of the
10:44
university, where were you going to go,
10:46
you know, and what were you going to do
10:47
to continue to try and actually
10:48
commercialize a a business or or to like
10:51
launch a business? Um, Tech Transfer
10:53
wasn't really doing a ton to help you do
10:55
that, figure out how uh and so it just
10:58
it just fell into place and I think we
11:00
knew probably within the first six
11:02
months at the very least that like this
11:04
was something special and
11:05
>> and people were rallying around it. So,
11:08
>> um, and then I hit I got the bug, you
11:11
know, at the same time. I I loved it and
11:13
I thought this is fun and I like being
11:14
at the center of all of this and um
11:18
>> but what was something that maybe almost
11:21
broke but like no one knew about it
11:23
>> because you you said it was like
11:25
>> oh gosh
11:25
>> somewhat chaotic but any anything in
11:27
particular any stories that you could
11:28
share that
11:29
>> you know I think I think um a lot of
11:33
times the expectation particularly look
11:36
these business you know these these
11:37
innovation centers rent of startups or
11:41
membership dollars does not pay to keep
11:44
the lights on, right? Um, it is a it is
11:47
a pretty comprehensive like it's a tough
11:49
business. I mean, I tell a lot of a lot
11:51
of people that are trying to build these
11:52
in other in other markets like why why
11:56
would you do it because it's really
11:57
hard, right? And you really have to have
11:59
a lot of interesting facets. It really
12:01
has to be the right community. It has to
12:03
be public sector and private sector and
12:05
the venture capital and the
12:06
entrepreneurial ecosystem and the
12:07
academic, all these different things.
12:09
And then it has to have something that
12:11
>> like they all have to line up.
12:12
>> They have to line up. They all have to
12:14
feel like they're a part of it. And they
12:16
have to feel like there's a I have a
12:17
vested interest in it. Success. I want
12:19
to be a part of it. And so how do you
12:21
create that, right? And that's hard in a
12:23
lot of markets. Density, all these
12:25
different things. Um and so I think in
12:28
the beginning we were like, yeah, we
12:30
could do this and yes, we can do that.
12:32
And you realize like that doesn't work
12:34
at all. What does sponsorship mean from
12:37
a large, you know, like okay, sure,
12:40
we'll put your name on this, but like at
12:42
the end of the day, name is a little bit
12:44
of something and then there's no ROI.
12:47
What's the ROI on that, right?
12:49
>> So, I think we noticed we had to start
12:51
like, you know, first year maybe is easy
12:54
to say,
12:55
and it's the same is true today, like,
12:57
oh, sure, we we'll throw those dollars
12:59
out there to see if something can come
13:00
of it from a large corporate sponsor.
13:02
And then after a while they're like,
13:04
"Okay, well like I actually need to see
13:06
return on those dollars." So you start
13:07
having to come up with more tangible
13:09
KPIs against your, you know, against
13:11
your sponsorship. Um, and I think we
13:15
also, you know, listen, entrepreneurs
13:19
still need that they're going to fail
13:21
fast.
13:22
>> Yeah.
13:22
>> Right. We know that you're going to see
13:24
a lot of failures. Okay. So we had to
13:26
start thinking about how do we create
13:28
opportunities where that's a terrible
13:30
idea. We know it's a terrible idea.
13:31
either we can quickly help them
13:32
understand a new way of thinking about
13:34
it or let's fail fast and then maybe we
13:37
take that leader and put them with
13:38
another company. We start thinking about
13:40
those types of things and how do you
13:41
connect the dots to like you know you
13:43
know one plus one actually equals three
13:45
in that regard and now there's a real
13:48
opportunity to build a business because
13:50
there's a lot of that failure and a lot
13:52
of that kind of figuring it out and
13:53
pivoting that's going to happen all the
13:55
way through. We had to pivot and figure
13:57
it out too. I think the business that it
13:59
started in 2012 at 1871
14:02
uh is I mean and you know they've gone
14:04
through a lot of iterations, right?
14:06
Yeah. Changed and changed and changed
14:08
again. They've just they've just
14:10
reopened in a new location and they're
14:12
they're they're still trying to find
14:13
something different.
14:14
>> Yeah.
14:14
>> Hub same thing, right? Um we've iterated
14:18
and kind of moved with the market and
14:20
seen where the opportunities lie. Um
14:23
it's constant, you know, constant
14:25
adjustment and pivot. Yeah, there's
14:27
there's always course corrections. It's
14:28
never just like a straight, you know,
14:30
you're just you're constantly moving.
14:31
I'm curious, so after 1871, I mean, it
14:34
>> it worked, right? You right, you didn't
14:37
stay.
14:37
>> So, you went and built something
14:39
narrower,
14:40
>> healthcare specifically.
14:42
>> Yeah.
14:42
>> Um like why healthcare? Because I think
14:45
out of every sector you could have
14:46
picked, like healthcare is like it's
14:48
kind of
14:49
>> hard. It's tough.
14:50
>> Yeah. It's kind of hard.
14:51
>> Yeah. Well, I think that's pro partially
14:53
why. Um Yeah. Yeah, I think we talked
14:56
about this before before we started
14:58
filming, but
14:59
>> there's a huge health care market here
15:02
in Chicago, right?
15:03
>> Um, you know, I think huge and I think
15:07
we've had some sort of volatility in
15:10
that, lost some big leaders.
15:12
>> Um, I remember when Teada, you know,
15:14
left, you know, the large corporate, but
15:17
I I would say over the last five years,
15:18
it's actually continuing to sort of
15:20
build.
15:21
So I think through world business
15:24
Chicago and the market in kind of the
15:26
Chicago next which was the innovation
15:28
council of the mayor. It was like what
15:30
what sectors do we own? Can we dominate
15:33
and how do we infuse innovation into
15:35
that sector to continue to lead and
15:37
healthcare was an obvious
15:39
>> obvious next step. There was also a lot
15:42
of healthc care companies that were at
15:45
1871 but didn't have the unique
15:47
resources to support them. Right. It's
15:49
not
15:50
>> it's not a software company you can hang
15:51
a shingle out and start selling
15:53
something like at you know it's a
15:55
friction rot challenging um challenging
15:59
path and we needed to treat it
16:00
differently and so Stephven Collins um
16:03
who had been part of the 1871 project um
16:06
under JB Pritsker uh continued to look
16:09
at healthcare. He had come from Abbott.
16:12
He had a healthcare background. He was
16:13
passionate about it. He was pushing
16:14
toward driving it. we had a lot of other
16:16
players in the in the space that were
16:19
leaders of industry um who were saying
16:21
we got to do this.
16:23
>> Um and so we said, but let's riff off of
16:26
the value of 1871 and extract healthcare
16:29
out of 1871 and just go down the hall
16:32
and build our own um you know, our
16:34
infrastructure there, but where there
16:36
could be kind of collaboration between
16:38
the two and it and it hit
16:42
>> because you talked to so many founders.
16:44
I'm curious like even from your from
16:46
your matter days. Is there like a
16:47
founder from the matter days that you
16:49
still maybe even ponder about think
16:52
about like someone whose story like
16:54
really struck you and stuck with you?
16:56
>> I mean I talked to a ton of founders
16:58
still um and actually we even have a few
17:01
that are over here um that I feel that
17:04
that have remained incredibly passionate
17:06
about. Um, yeah. I mean, there's there's
17:09
still some companies that are doing
17:11
great things. There the there's like
17:13
within the diabetes space, there's some
17:16
companies that I was like, "Yes, and I
17:17
watched them grow." There were some in
17:19
like the um mental health uh that I, you
17:23
know, I got really passionate about and
17:24
that have now like exited companies.
17:26
There's um there's actually a member
17:29
here, his name is Tyler Wonky. Um he was
17:32
part of a founding a company called
17:33
inoblative
17:35
um which was around um within breast
17:40
cancer um surgery ablasion to ensure
17:43
that you got the you know to the cancer
17:46
um and he's now in a couple different
17:49
companies here that company's continuing
17:51
to scale it's actually out of mhub so I
17:54
feel like many companies I've continued
17:56
to watch the progression um and and
17:59
several that have exited and done very
18:01
well. Some that are serial founders that
18:03
are doing it again and now we're
18:05
actually working on some of those
18:06
companies. So, it's great to see them
18:07
come back a second and third time
18:09
around.
18:10
>> Yeah. I mentioned about, you know,
18:11
getting the tour and it's just a it's a
18:13
magnificent space, massive. And just
18:17
kind of walking through Anhub and I
18:20
didn't ask you that day, but I thought
18:22
about it after I left. I was like, like
18:23
when you're walking through the
18:25
different spaces, like what are you
18:27
looking for?
18:31
You know, I mean, that's a really
18:33
interesting question because probably
18:34
any given day I'm I'm thinking about
18:37
something else, right? But I I'm I'm
18:39
constantly trying to think about how do
18:42
we up our game? How do we ensure that
18:45
the right that our various audiences
18:47
have the right resources, the right
18:50
value out of what they like what is the
18:52
MHub's value from different members,
18:54
right? Um, if I think about startups and
18:57
I think about the entrep, you know, like
18:59
their entrepreneurial journey, um, what
19:02
I want to see are those ones that, um,
19:05
are making those consistent sort of, you
19:08
know, I hit that milestone, I have or if
19:11
I'm not,
19:12
>> I raise my hand.
19:13
>> You'd be amazed at how many startups you
19:17
offer an incredible wealth of resources
19:19
to, but it's like
19:21
>> they don't know how to actually take
19:22
advantage of that. And I I feel very
19:25
skeptical around the team.
19:26
>> What about that? What's like what are
19:28
the blockers from them taking you up on
19:29
that?
19:30
>> I think sometimes uh it's a technical
19:33
founder and that they need we're going
19:35
to have to help them find a co-founder
19:37
that understands different aspects of
19:39
the sort of strategic side of the
19:40
business. Sometimes it's
19:41
>> I got my head buried down and I'm a
19:43
little myopic in what I'm viewing. Um
19:47
and other times I just simply get
19:49
frustrated and I don't know, right? like
19:51
we have um we have a wealth of resources
19:54
and folks of industry who give of their
19:56
time as mentors um advisers, experts and
20:00
residents.
20:01
>> You'd think their dance cars would be
20:03
filled all day long and sometimes
20:06
they're like I'm just sitting here
20:08
today. Nobody took me, you know, took
20:10
advantage of my time. And I'm like,
20:11
what? What the heck? You know, this is a
20:13
wealth of information. And so,
20:15
>> like, is it like pride and ego getting
20:17
in the way of somebody asking for help?
20:19
Like that's interesting. I honestly just
20:21
think it's I'm moving in 20 different
20:24
directions. I'm still growing as a
20:26
leader. I need to understand how to
20:28
balance my time. I need to um probably
20:32
um share some of that that's on my
20:34
priority list and and trust others on
20:36
the team. I need to groom others to do
20:38
things. I think that I think founders
20:42
feel like they carry the weight of the
20:44
world on their shoulders and at times
20:46
perhaps don't um take a step back when
20:48
we try to teach them to understand you
20:51
know what are those what are those those
20:54
challenges what are those pitfalls what
20:56
are the you know what is that what does
20:57
that journey look like and then try and
20:59
obviously show them what resources are
21:00
available to them but really kind of
21:02
call them out when they're not and
21:03
sometimes it takes tough love oftentimes
21:06
it takes tough love right um We're a
21:09
little bit like sherpas. We're a little
21:11
bit like sages. We're a little bit like
21:12
parents. We're a little bit like, you
21:14
know, the the good parent, the good cop
21:16
and bad cop
21:17
>> at different times as well. And so I
21:19
think if it goes back to your question,
21:20
what am I looking at? You know, I I want
21:22
to see um I want to see the place,
21:27
>> you know, robustly active. Like that's
21:29
one, right? It feels very different when
21:31
the place is active
21:33
>> and people are on the equipment and
21:35
they're using it or they're sitting in
21:37
meeting with mentors or they're
21:38
participating in classes and workshops.
21:40
It feels very different when that's
21:43
happening and you want to be here when
21:44
it's when it's like that. So I'm I'm
21:46
always thinking about what is you know
21:47
what's the program or what are the
21:48
programs we should be having to keep
21:50
people active. I want to see the teams
21:54
um really taking advantage of those
21:55
resources. I want to see corporates and
21:57
v, you know, and and and investors in
22:00
the space engaging and finding ways to
22:03
bring them in because really what's
22:05
going to make all these teams successful
22:07
is to have access to those important
22:09
pieces, right? Like we got to get the
22:10
industry in. We got to get the we got to
22:13
get the investors in. We need to bring
22:15
capital to the table. Um, and so really
22:18
thinking about how to connect those
22:20
dots. I guess back to, you know, what we
22:22
said in the beginning,
22:23
>> you know, you you mentioned Tyler and
22:26
Ablative, and I'm just curious like
22:27
other startups that you have come
22:29
through the MHUB doors
22:31
>> were the ones that you knew almost
22:32
immediately like they're going to make
22:35
it. And and what what were some of those
22:38
attributes that they had that you were
22:39
like, you know, looking back like, well,
22:41
they had that, they had A, B, and C.
22:43
>> Yeah. And so you know listen um there's
22:46
a new company uh so I'll go back to what
22:49
I think um we invest a lot in
22:53
um so we have funds right and and we do
22:55
early stage investing and we have a
22:58
first fund $15 million fund we made 54
23:02
investments out of that of which 27 were
23:04
u medical device companies and we go
23:07
through a pretty rigorous down selection
23:08
through a traditional accelerator model.
23:11
So what do we what do we think about
23:13
when we look at teams we might see 300
23:15
applicants and we accept eight and we
23:17
invest in eight right so we we pretty
23:19
rigorous um you know so I think what do
23:22
we look for like first and foremost I
23:24
look at the founders right what's their
23:26
background what have they done
23:28
>> uh you know like like truly
23:32
>> really get to know them and understand
23:34
and also are they coachable but where
23:36
have they come from how do they
23:38
understand the you know the the the the
23:41
sector they're trying to to uh to
23:43
disrupt. That's a big piece of it. Um
23:46
you know, so that's first and I can tell
23:49
when we talk to founders, you can tell
23:51
immediately. I really you spend like a
23:53
half an hour with them and you get a
23:54
good feel for can I believe that this is
23:57
someone who can take this idea forward.
23:59
Um, and I think a really an
24:02
understanding of the market, the passion
24:03
that they have toward an understanding
24:05
of that market, what is the competitive
24:06
landscape, what is their opportunity,
24:08
how do they think they could disrupt it.
24:10
We spend a lot of time kind of really
24:12
hing, do they really understand that? In
24:14
some cases, they don't, but we think
24:16
we've got some technology there that we
24:17
can help them figure some of those
24:18
things out, but
24:19
>> it really comes down to um, you know,
24:23
the people. So, you asked about a you
24:24
know, company. So there's a new company
24:27
um called Flow Medical and um the two
24:32
this the CEO and the CTO are serial
24:34
founders. They both exited companies.
24:36
>> Yeah.
24:37
>> And they're back to do it again. Um I
24:40
can really tell you that I believe very
24:42
strongly in their ability to get that
24:45
company to exit. Um, but we're also
24:48
banking on some really young coming out
24:50
of university brilliant technology
24:53
people who have a great idea and can
24:56
take, you know, take that idea and then
24:58
like be open to learning and receptive
25:01
to coaching. And so
25:04
it's a little bit of the balance of like
25:06
enough of what we know of the market. Is
25:07
there an opportunity with that with that
25:09
technology, but also we really bank a
25:11
lot on the people.
25:12
>> Yeah. And you know, you said something
25:14
that reminded me of a we had Pat Edley
25:16
come on the show. She's a former partner
25:18
over at General Atlantic. And I and she
25:20
said, you know, I said, "How do you know
25:21
what great looks like?" And she said,
25:23
"You have to get a lot of looks."
25:26
>> And it sounds like you've had so many
25:29
looks at founders at the earliest
25:33
stages, you know, more than most. And
25:37
there's probably a certain set of
25:38
patterns that come come up. And I'm
25:41
imagining that
25:43
are there patterns that you see now that
25:45
you couldn't see like 10 years ago when
25:47
you first kind of came up in this game?
25:49
>> Totally. Yeah. And actually that's a
25:51
great point that like that thank you for
25:53
sort of saying that as a nuance. I mean
25:54
we've seen thousands of companies,
25:56
right? Like I have literally talked to
25:57
thousands of companies in my time and so
26:00
you you see repeat repeat repeat kind of
26:03
themes. Um
26:06
I think that I'll tell you one big one
26:09
that we've learned and that we don't do
26:10
anymore is um
26:13
single founder companies or just one
26:16
right single it's very hard and we used
26:20
to think that that was doable and we
26:22
could help them find their co-founders
26:24
or their team um it's really really hard
26:27
to build a business and do it by
26:29
yourself and take it in healthcare medte
26:32
like med device I mean virtually
26:34
impossible.
26:35
>> Um,
26:36
>> we learned that pretty quickly. Uh, that
26:39
like and we pulled a lot of teams into
26:42
the first I don't know probably half of
26:45
our investments in fund one and there's
26:48
a few that were outliers, but the better
26:51
understanding is you you've got to at
26:53
least have a team of two. And again,
26:55
we're we're we're banking very early,
26:57
right? We're preede investment. So,
26:59
we're we're taking big bats, uh, you
27:02
know, small dollars, big bats, but um,
27:05
single entrepreneurs, it's it's really
27:07
hard. You need somebody both from a
27:09
mental health type of standpoint and an
27:11
understanding and like
27:13
>> who's Yeah. who's carrying carrying the
27:14
load, you know, it's only one, you know,
27:16
one single point of failure versus kind
27:18
of distribution. And even more so when
27:21
you think about healthcare, if they're
27:22
coming from outside the industry and so
27:26
they're like making assumptions that
27:27
they don't really have,
27:29
>> they haven't fully validated. That's a
27:31
yeah a huge risk
27:32
>> and we see a lot of that.
27:34
>> All right. So you've had a lot of looks.
27:35
>> Yeah.
27:36
>> So you've you have two founders. founder
27:39
A um amazing technology,
27:43
average storyteller, and then you have
27:46
founder B,
27:48
good technology, but they've got a like
27:52
world class ability to build
27:55
relationships and get people excited.
27:58
Who are you betting on?
27:59
>> A for sure. I'm going with A because
28:01
guess what? I can I
28:03
>> A. Amazing technology, average
28:04
storyteller.
28:05
>> Yes, because we're going to help him
28:06
become an amazing storyteller. I know
28:08
how to do that. We can work with that.
28:10
>> You're going to bear on
28:12
>> every time.
28:16
>> I think
28:19
I think if the technology is amazing, we
28:21
can make we can make that work. I think
28:22
the Listen, those are both good.
28:24
>> I know this is good. It's good there. I
28:26
just I just
28:26
>> Good technology and a great storyteller.
28:28
Sure, you can sell that, too. But I
28:30
think I don't know. I I I think I'm
28:34
going with one because I can read
28:36
through the BS on the second one first
28:38
and then I'm skeptical. You know, is the
28:41
technology good really good
28:42
>> or is it not really good telling me a
28:44
story?
28:45
>> Yeah. But I mean, look, building
28:46
physical products is just it's just
28:49
harder. I think you you can't just push
28:51
an update overnight. What what what kind
28:54
of a person signs up to build something
28:57
where the odds are just that difficult?
29:02
I mean, you know, physical innovators
29:05
are a unique breed for sure. I mean, and
29:07
they're, you know, engineers, embedded
29:09
software folks, they they see the world
29:12
in a different way. I am not one. I
29:14
don't profess to be one, but we have a
29:15
lot of people on our team that are
29:17
constantly conjuring up like that
29:20
widget. I can do it better if I did
29:22
like, you know, I this and I think um
29:26
this isn't the perfect answer to your
29:27
question, but I think it's a segue,
29:29
which is investment
29:32
has been traditionally for a long time
29:35
software. That's the dour, right? It
29:37
used to be was like for every $10 in
29:39
software investment, $1 went to
29:41
hardware. I think it's about 7 to one
29:43
today. But I think if you look at uh
29:47
investors over the last 6 to 12 months
29:50
in other sectors even certainly in
29:52
healthcare too where they're like we
29:54
only invest in software or apps or you
29:56
know SAS or all of a sudden they're
29:58
talking about it differently. We're
29:59
talking about physical AI. We're talking
30:01
about you know medical AI. were talking
30:03
about, oh, I I just saw I just saw
30:06
someone this morning. I was like, wow,
30:08
you guys told us you would never do
30:10
hardware because it was too hard. You
30:11
didn't understand it. And now they're
30:13
investing in hardware. And I think with
30:15
the trajectory of where
30:18
um AI and compute is going, quantum, uh
30:24
hardware is is the moat. Hardware is
30:27
what's unique. Hardware is what's
30:28
interesting. um and where I think you
30:31
know the biggest return and opportunity
30:32
is going to be. So I think the landscape
30:35
is shifting so quickly. Um I think we're
30:38
talking about this inner shock obviously
30:40
of software and hardware. It's not
30:42
exclusive today. Nothing is just a dumb
30:45
device particularly in healthcare. Um,
30:48
and so you have you have to understand
30:49
both. But I think
30:52
hardware is uh we feel really positive
30:55
about it and I love that that has kind
30:58
of come back around to being
31:01
cool in where I think the market is
31:03
going.
31:04
>> So me and you were both bullish on the
31:07
Midwest kind of in general manufacturing
31:11
talent. There's an a plethora of talent
31:14
here. You have all the right
31:15
ingredients. Maybe fast forward 10
31:18
years, like what does the innovation
31:19
scene look like? Um, with everything
31:21
that you and the team are building, what
31:23
does that future look like? I know 10
31:27
years is a long time, but curious what
31:28
that looks like.
31:30
>> Yeah, I mean, first of all, we need to
31:32
see more capital flowing here, right?
31:34
That that I think is still I think it's
31:36
still a challenge. I think the the
31:38
Midwest is still a little conservative.
31:40
Um, I think it's slowly improving. I
31:44
hope that in these next few years we'll
31:46
start to see a a real shift and 10 years
31:49
from now we are considered you know the
31:52
goal was always to be like a top five
31:54
tech innovation hub. Um I think we're I
31:57
think we have all of the facets for that
31:59
to happen from an MHUB perspective. Um,
32:04
we're really bullish around hard techch
32:07
innovation and the belief that the right
32:11
pieces are in place in Illinois and the
32:13
Midwest for us to become a the leader.
32:18
>> Um, and that's already really happening.
32:21
I mean, Midwest legacy in in the
32:23
industrial sector is already there.
32:26
>> Now you've got a robust innovation
32:28
ecosystem that is growing very quickly.
32:31
Um, and I I just think like we can lead
32:35
in a lot of areas. And then you look at
32:37
what, you know, like the governor's
32:39
really doubling down on quantum,
32:40
thinking about the quantum micro
32:42
electronics park. Um,
32:45
we think there's just, you know, an
32:47
enormous opportunity. So to me, we've
32:50
we've built a great foundation. Um, and
32:53
now as everyone sort of recognizes this
32:55
is where I think the you know the the
32:57
landscape is going, I I think it's only
33:00
it's only positive from here. Mhub is
33:02
looking beyond our building at um
33:05
building a much larger district that
33:07
would be more of an advanced um you know
33:11
sort of urban R&D district. Um and we've
33:16
been visioning that and and talking to a
33:18
lot of folks. But the idea of creating
33:20
density around a district or a community
33:23
um and I I think there's real
33:26
opportunity for that that would not only
33:28
build upon and grow of like you know as
33:31
these teams get up larger and grow and
33:33
stay close um but also be kind of a a
33:37
magnet for for other companies from
33:40
around the country and around the world
33:42
and that can be across sectors. Um,
33:45
we're seeing it, right? There's just
33:47
like right now there there's all these
33:49
pieces that are kind of coming together
33:50
and converging. And I I just think um 10
33:54
years from now, I don't see why Chicago
33:56
isn't a leader in, you know, in that
33:58
sort of next phase of industrial
34:01
leadership. That's my
34:02
>> Well, there there's there's there's
34:04
something magical about proximity and
34:06
just being in in and around
34:08
>> Yes.
34:09
>> that. So, you're talking about the
34:10
district. I just started envisioning
34:12
that. I know it's like just the
34:13
closeness of things. It just makes it
34:16
more amplifiable
34:20
sooner.
34:20
>> San Diego or San Francisco or Cambridge
34:23
and Boston. Like why do people talk
34:25
about those those cities, right?
34:28
>> They're smaller. They're more compact.
34:29
The density creates serendipity and you
34:33
you know you can like find people in
34:36
close. Chicago's market is huge from
34:39
Wisconsin down to the, you know, the the
34:42
uh the border of Indiana. That's huge.
34:46
But we've started to create this
34:47
density, I think, here um purposefully.
34:52
And that I think that just really does
34:55
create more opportunity for scale and
34:58
quickly for sure.
35:02
You know, I there's there is something
35:04
else I kind of want to bring up because
35:06
you know what MHUB is doing, what just
35:08
in general with MHUB is doing is you're
35:10
placing a bet and a focus on a founder
35:15
that um wouldn't necessarily get that
35:19
type of an opportunity. And
35:23
to me that's strategic access that like
35:27
there's something very interesting about
35:28
that because you personally aren't
35:31
necessarily getting the headline. I mean
35:32
Mhub gets its fair share of headlines
35:34
but I think you're building a place
35:38
where the founder gets discovered.
35:40
That to me seems super cool. Has that
35:44
taught you anything about like impact
35:46
legacy? Do you think about stuff like
35:49
that or is that just me kind of
35:51
>> No.
35:51
>> going off the rails here.
35:52
>> Um,
35:54
yes. Listen, I I think we're impact
35:58
driven. This is about This is a
36:01
nonprofit entity how it was created. I'm
36:03
not I'm not going for the, you know, the
36:06
sort of huge take personally. I find
36:10
passion and value around mission and I
36:13
think everyone that's here does that as
36:14
well. And yes, obviously we want to do
36:16
well personally, but we believe in
36:19
Chicago. We believe in the Midwest. We
36:21
believe in this ecosystem. And I think
36:24
um I care about
36:26
I care about the opportunities that
36:29
these new technologies and the
36:31
disruption that it'll create have on the
36:34
world that I am a part of, that my
36:37
children will be a part of. So if you
36:38
think about legacy, right, like that's
36:39
really important. And I think like I
36:42
said at the beginning, I'm proud of what
36:44
we've accomplished and what we still
36:45
have the potential to do. Um, we're
36:48
ultimately a platform to help these
36:50
technologies commercialize and to change
36:53
the world, right? And, you know, we're
36:56
focused on really important areas. We're
36:57
focused on healthcare. We're focused on,
37:00
you know, sustainable like
37:03
manufacturing. We're focused on energy.
37:05
And those are really areas that like
37:07
have a real need for disruption.
37:09
>> So, if you lean in on what you believe
37:11
in. Like I do think that there's legacy
37:14
there. Um and that everybody wins.
37:18
>> Yeah. Before I forget, um do a little
37:21
commercial for MHUB. Tell people where
37:22
they can go to learn more. The website's
37:25
robust. There's a lot that's on there,
37:27
but give give people a little bit of a
37:28
shout out because I want to make sure we
37:29
do.
37:30
>> Thank you for doing that. So, um come
37:32
see us. We're on Fulton at Ashlin, 1623
37:35
West Fulton, um right at the end of
37:37
Fulton Market. It mhub.org.
37:40
website. So, check it out. There's an
37:42
events tab at the top that you can see
37:44
what's upcoming at any time. There's a
37:46
lot of open events that are great to
37:49
just, you know, come and get a
37:51
familiarity with the with the community.
37:54
Uh we have a summer barbecue on July
37:56
16th. You can find that one. It gets
37:58
like a thousand people. Very fun. Um
38:00
there's also tons of programs and
38:02
activities to learn about to and you
38:04
know, if you're an entrepreneur or you
38:06
want to get involved in any way, um
38:08
great opportunities. And by the way, you
38:09
can reach out to me too,
38:10
melissaammhub.org,
38:12
which is easy. And um I'm h always happy
38:15
to engage as well.
38:17
>> All right, let's do a little I'm just in
38:19
my mind. I want to do some rapid fire.
38:20
We'll run down a really fun note. So
38:22
most um whatever comes to your mind
38:25
first, but the most underrated founder
38:28
quality.
38:31
>> Oh my goodness. Humble.
38:35
>> Okay. What about a book that you have
38:38
gifted the most to founders?
38:41
>> Um
38:44
I would that's an interesting one. I
38:47
just read uh one called OKR. So it's
38:50
about quantitative KPIs. It's really
38:53
good one right now that I think is
38:55
important. You have to have right KPIs.
38:58
>> Okay. What about maybe a founder that
39:02
you wish more people knew about? give a
39:05
shout out.
39:07
>> Um,
39:10
it's so hard to give one. Somebody's
39:11
gonna be offended by me. Like, just
39:13
kidding. Uh,
39:14
>> picking your favorite child. I know.
39:16
>> I know. I'm trying really hard not to do
39:18
that. Um, listen, I think there's a
39:20
company called Vasa Watch, Christine
39:22
Rohan. It is um to to um identify
39:25
postpartum hemorrhage post pregnancy. I
39:28
think they're doing great things and as
39:30
a person as a woman but also who cares
39:32
about women's health and thinks that
39:33
it's completely uh you know still not
39:37
enough attention given to women women's
39:38
health that's a great one.
39:40
>> Okay, this has been awesome. I'm so
39:43
happy that you were able to come on and
39:45
just sort of share a lot of the work
39:46
that you and the team are doing and that
39:48
there's just been there's been nuggets
39:50
of information that you dropped today
39:52
that I think were helpful. So for those
39:53
if you're tuning in if you think that
39:55
this particularly this conversation was
39:57
impactful uh the number one thing is
39:59
would you mind sharing the episode? I
40:01
think that would be super helpful
40:02
especially for Melissa and the team at
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MHUBU and all the work that they're
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doing. Send it to someone that needs to
40:07
hear it. Um and then if there is a topic
40:10
that you want us to explore or if
40:12
there's a guest that you want us to have
40:13
come on the show, drop us a note, let us
40:15
know. We do always proactively go out
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and try to reach out to the best people
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to bring them on to the show. Remember,
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this is not just content. This is an
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interactive community. It does take a
40:25
village. So, thank you for listening.
40:27
Keep building with purpose and we'll see
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you next time on the Advancing Health
40:31
Innovation Show. Thanks for joining.
40:34
>> Thank you. Bye.