Patrick Frank is Co-Founder & Chief Operating Officer (COO) of Rightdevice, a platform to help patients find the right surgeons. On this episode, we discuss the details of startup finance including fundraising, valuations, cap tables, budgeting, and much more.

We also discuss selecting your cofounder, finding the right investors, and other personal challenges in business. As I once heard, all problems in startups are ultimately people problems. Enjoy!


GUEST


Patrick Frank LinkedIn
Rightdevice Website

PODCAST


Safa Mahzari
Patreon
Alluxo Website

TERMS


SaaS = software as a service
VC = venture capital or venture capitalist
DCF = discounted cash flow analysis
COGS = cost of goods sold
Tranche = French for "slice", means a portion of a larger investment or deal
Capitalization Table = the owners of a company with the total adding up to 100%
Valuation = the value of a whole company, often derived from the price paid to invest
Income Statement = financial statement showing a business's profit or loss in a period
Balance Sheet = financial statement showing assets, liabilities, and capital
Cash Flow Statement = financial statement showing the uses and sources of cash

TIMESTAMPS


0:00 - Episode intro
1:09 - Patrick's background
5:35 - First job out of school
12:25 - Working in legacy industries
32:22 - Gross margin vs. profit margin
39:02 - What is Rightdevice?
47:08 - Should you start a company with a friend?
56:53 - Fundraising and dilution
1:04:00 - Budgeting after a VC raise
1:13:54 - Where will Rightdevice be in the future?
1:16:33  - Wrap up and final thoughts