I’m Moshe, Co-founder of RADLogics.  

I'm a tech entrepreneur with 25 years of experience in tech entrepreneurship.

My background is in Electrical Engineering and I also have an MBA from The Peter Drucker School of Management.

RADLogics is the fifth startup I've been involved with. I've started 3 of those myself and 4 out of the 5 were sold.

For the first venture, I was employee number 7. I led product and GTM, which ended up being the main reason this company was acquired by HP.

The second one was called Kinemetrics, based in Pasadena. I brought in a team that transformed the company from a manufacturer of an old device, to become a solutions company with a big software component. It was acquired by OYO, a NIKKEI 300 Japanese company. 

The third one I started as a CEO and founder in the nascent mobile space. We created a software platform to help cellular carriers optimize the use of their networks by introducing location-based services. This one got sold to a subsidiary of Schlumberger.

My fourth company was called Stellaris. As Wi-Fi became more prevalent, an issue of congestion became apparent, and that is what our solution solved for. The main pushback from getting our solution into the WiFi standard was from Intel, and so we pulled the plug on this before starting RADLogics.

RADLogics is my first experience in healthcare, more specifically in digital health.

I was warned from the get-go that patience is necessary to see substantial outcomes in this space. 

The much longer-term turnaround time in terms of proof of concept to actual clinical validation, all the way to regulatory approval takes years.

We found that the best investors attuned to what we were trying to do in the early stage would not be VCs, in particular, but rather home offices or angel groups that focus on healthcare. 

We found that they are typically more patient, and understand the necessary steps that are involved between initial funding and actually having a viable product to sell at scale.

I self-funded the company’s pre-seed. We then did a seed round with angels from the Valley and then a Series A with an extension.

We went to those home offices and angel groups for a total investment of about $13M, which is modest compared to what we've achieved.

We pioneered the domain of using AI in medical imaging analysis. 

In this space we were the first company to get FDA approval, the first to launch commercially, and the first one to launch on AWS or any cloud technology.

We were voted by the industry as the best new vendor when we first launched the solution commercially, post-FDA approval.

When I first self-funded the pre-seed round, the idea was to build a proof of concept. It was to build software to the point where we could show that this could actually do the trick. 

We started narrow with one app. We focused on that and once it worked, we then raised our seed round. 

The purpose of the seed round was to reach FDA approval, but there were other things as well, such as improving the product and getting more clinical validation from other major academic medical centers.

We looked for funding sources that were boutique institutions and groups of people that have a keen interest in improving healthcare with technology.

We found that there are actually quite a few of these entities. Most of those stemmed from a personal story from the MD of the fund, stories about family member struggling through health issues.

It was very touching to talk to these people and understand that they're not just investing for the ROI, but rather because it serves a much deeper purpose for them.

Very different routes. Some were through connections, and others were through my network. 

Once the doctors that we worked with in our beta sites saw the product work, they said they’d mention someone interested in what we were doing. 

Once they saw it worked at their facility, they thought it was cool and connected us.

I’ve been in this space for quite a few years now. I have a network of people that I trust and know. 

The interactions with the people at the hospitals or clinics that we've worked with initially provided an additional stream of potential investors, outside my personal network.

The critical emphasis was the value that we bring to patients.

Once this is sorted out and people instinctively understand, you can take it to the next level of the typical financial speak: differentiation, GTM, sales strategy, marketing strategy, and channel development.

People want to see the indisputable benefit to the patients before anything else.

The first thing I did when I made the decision to look for an opportunity in the healthcare space was to ensure that there would not be a trade-off between a patient's outcome and financial return for the institution that provides the care.

This is one of the most beautiful things about the RADLogics solution. It is an incredible combination of do-gooders at all levels.

Everybody wins; the patient first and foremost, but also the provider, hospital or clinic, and also the health insurance because we introduce better quality, better efficiency, and reduced costs.

It was very hard to convince investors at the Series A to jump the gun as there were no good comparables in the market at the time.

This was pioneering work. From the business model perspective, we had to figure out how to integrate it into existing clinical workflows and within the provider’s data systems.

We also pioneered the deployment of the solution using cloud computing — this was not trivial. We hopped on the phone with the CTO of AWS and he said, “you're gonna do what?” 

We told him that we wanted to build a medical imaging analysis platform on AWS that could analyze 1M CT scans per day. He didn't believe we could do it, but we did.

Somebody needs to run the show and focus on fundraising. For me, fundraising is a necessary task to being a CEO and founder. 

I prefer to spend most of my time looking for exceptional talent and talking to customers. This is why I use this network of colleagues or acquaintances to try and streamline the process.

I only talked to people that were pre-sorted by people that I trust. This way, the introduction and all the preparatory work is done very quickly.

Do a deep dive to try and find the types of investors that are culturally aligned with your business and what you're trying to achieve.

Also never forget the notion of opportunity cost. It's critical for one's life in general and particularly for a founder's life. 

If you do something, you're not doing something else that might actually be better and more worthy of your time, money, and energy.

I like to read things by Thomas Tungus as I like his perspective.

I also like the guys at a16z. Sometimes they have some good thoughts communicated to the community. Marc Andreessen specifically provides wisdom that helps entrepreneurs.

The most unimportant item to focus on is valuation. Don't bring it up early. I wouldn't spend too much time on that at all.

In the early stages, I would recommend delaying anything related to valuation to later stages as much as possible, after the company can demonstrate solid ARR and customer growth.

I recommend founders use convertible debt instruments throughout funding as much as possible before they really need big bucks to scale.