Meet Charlie Bullock from Scan.com
Q: Could you introduce yourself and your startup?
A: I’m Charlie, one of the co-founders and CEO of Scan.com. Our startup focuses on revolutionizing the way diagnostic imaging scans such as MRI and CT are ordered and accessed.
We aim to make the process more transparent and accessible for both patients and their healthcare providers. Scan.com serves as an infrastructure tool, streamlining and simplifying the ordering of diagnostic imaging by connecting patients and referrers with imaging centres via a single platform.
Q: What inspired the creation of Scan.com?
A: The idea for Scan.com stemmed from the personal experiences of my clinical co-founder, who is a physician. He encountered patients daily who needed diagnostic imaging and noticed the difficulties they faced in scheduling these tests online. The lack of availability for online booking added stress and burdensome admin to patients already anxious about their medical needs. Furthermore, the pricing for these tests wasn’t transparent from the outset, which compounded their anxiety with uncertainty about the financial implications of getting a scan.
My background is in marketplace businesses, having worked with companies like Deliveroo and Pollen, and previously founding my own marketplace business, Kaampus. Recognizing these challenges in the healthcare sector, I saw a clear opportunity to apply a marketplace model to solve these issues. The solution we envisioned was a multi-sided platform where diagnostic imaging centers, patients, and referring providers could interact seamlessly all in one place. This approach aimed to make the process of booking diagnostic tests more accessible, transparent, and efficient for all parties involved.
Choosing Plug and Play
Q: Why did you choose Plug and Play as your investor?
A: We opted for Plug and Play due to their impressive credentials as an investor. Their strong network of strategic and corporate investors – who they’ve introduced us to – significantly broadened our connections. Additionally, they boast a substantial financial investor network, particularly on the west coast of the U.S. and globally. This access to a wide-ranging and influential network and support from them was a major draw for us. Lastly, the array of portfolio companies under Plug and Play also cemented our decision. Their diverse and successful investments indicated that they would be a valuable partner for Scan.com.
The Application Process
Q: Could you share details about your application process with Plug and Play?
A: Our application process with Plug and Play was quite streamlined, thanks in part to an introduction from one of our existing investors that gave us an edge during the process. We engaged in several interviews with various investors involved with Plug and Play, which was an integral part of the application.
Additionally, we were required to submit a written pitch deck and a detailed business plan. These documents were crucial in presenting our vision and the potential of Scan.com. Following this, we had discussions with both Plug and Play’s UK and San Francisco offices.
It was during the COVID-19 period that Plug and Play decided to invest in us, and their decision to move forward with the investment amidst such a challenging global scenario was a significant milestone for our startup.
Daily Operations at Scan.com During Plug and Play Investment Period
Q: What was a typical day like for Scan.com after joining Plug and Play?
A: Once we joined Plug and Play, our daily operations didn’t change significantly as everything was conducted remotely. This setup suited us well, since Scan.com already operates as a remote-first company. During this period, Plug and Play introduced us to many of their portfolio and corporate companies, which was a hugely valuable aspect of our partnership with them.
We were able to continue with our day-to-day activities while benefiting from the connections and opportunities provided by Plug and Play, since it wasn’t an on-site accelerator program.
Plug and Play’s Role in Scan.com’s Development
Q: Did Plug and Play participate in a programmatic role with Scan.com, or were they primarily investors?
A: Plug and Play’s involvement with Scan.com was primarily as venture capital investors, rather than being part of a studio or incubator-style program. They didn’t engage in a programmatic capacity with us but rather provided funding and investment support. Their role was more aligned with that of a traditional venture capital investor, focusing on financial backing and the strategic connections and network-building that come with it.
The Introduction Process with Plug and Play for Scan.com
Q: How did the initial contact with Plug and Play come about?
A: Our introduction to Plug and Play was facilitated by one of our existing investors. This approach of being introduced to new investors through existing connections is something I highly recommend to other founders. Networking in this way is significantly more effective than cold emailing or directly approaching potential investors on your own. Having an existing investor introduce you and vouch for you makes a substantial difference in how a new potential investor perceives and interacts with your startup. This method of networking played a key role in our successful connection with Plug and Play.
Closing the Funding Round with Plug and Play
Q: Could you share the process of closing the funding round with Plug and Play?
A: The journey from initial contact to closing the funding round with Plug and Play was relatively straightforward for us, primarily because we had a strong company foundation with solid financials and traction. This advantage made the process smoother.
Plug and Play typically don’t lead investment rounds; they prefer to invest once they see other investors showing interest and conviction in a company. So, our strategy focused on securing commitments from leading investors to start with, and once we had other notable investors on board, Plug and Play followed.
Their decision to invest was influenced by the presence of these leading investors. Plug and Play has extensive networks and offers considerable value to companies, beyond what some pure venture capital investors might provide. Their involvement often comes after observing the company’s ability to attract other significant investors, and they leverage their robust networks and resources to support the companies they invest in.
Equity Exchange in Scan.com’s Series A Funding
Q: Can you clarify the nature of the investment received in your Series A round? Was it in exchange for equity?
A: Yes, the investment we received during our Series A round was in exchange for equity. This is typical for a Series A investment, where venture capital funds like Plug and Play provide capital to help a startup grow in return for a stake in the company. The $12 million we raised during this round was acquired through equity investment, which is a standard practice at our funding stage.
Timeline and Effort in Closing Scan.com’s Series A Round
Q: Could you describe the time and effort involved in closing your Series A funding round?
A: Closing our Series A funding round was a significant undertaking, primarily led by me in my role as CEO. The entire process took about six months from start to finish. During the first three months, it demanded roughly 50% of my time, which was focused on the active parts of fundraising, such as investor negotiations and discussions.
In the latter half of the process, my involvement reduced to around 25% of my time. This phase was more about the legal and closing processes, which I was less involved in – most of these tasks were managed by our CFO and lawyers. This shift in focus allowed me to dedicate less time to the fundraising process as it neared completion, with the legal and financial teams taking over to finalize the round.
Additional Support from Plug & Play Beyond Financial Investment
Q: Besides financial backing, what other forms of support did Plug & Play offer?
A: Plug & Play provided us with several key forms of support in addition to financial investment. Firstly, they facilitated introductions to other investors, which have been incredibly beneficial for our growth and networking. Secondly, they connected us with other portfolio companies that have synergies with our business. This has opened up opportunities for collaboration and potentially co-selling ventures.
Lastly, Plug & Play has offered to introduce us to their corporate partners when the timing is right. This aspect of their support is particularly valuable as it can lead to strategic partnerships and business opportunities that extend beyond immediate financial gains. These introductions and networks are crucial for a growing startup like ours, helping us expand our reach and strengthen our position in the market.
Influence of Plug and Play on Scan.com’s Scaling and Expansion
Q: In what ways have Plug and Play’s insights and involvement influenced your company’s scaling and expansion efforts?
A: Plug and Play has significantly influenced our approach to scaling and expanding Scan.com in multiple ways. Firstly, their sessions with other successful portfolio companies have been enlightening, helping us gain a clearer understanding of our own growth objectives and potential pathways to success. These sessions provided valuable insights into best practices and strategies for scaling a business effectively.
Secondly, introductions to other inspirational portfolio companies have been a source of motivation and learning. Engaging with these companies has allowed us to glean insights from their experiences and apply these lessons to our own growth strategy.
Lastly, Plug and Play’s access to corporate networks has opened up new avenues for us, particularly in terms of revenue channels. Their connections have facilitated introductions to corporate partners, presenting opportunities for collaboration and expansion that we might not have had access to otherwise. This aspect of their support has been instrumental in helping us diversify our revenue streams and expand our market presence.
Evolution of Scan.com’s Relationship with Plug and Play
Q: Can you describe how your relationship with Plug and Play has evolved since completing the funding round?
A: Since securing the investment and completing the funding round, our relationship with Plug and Play has only strengthened. A key aspect of this evolving relationship is the strong connection I’ve developed with Keira, who is the head of Europe at Plug and Play, and has been instrumental in facilitating further opportunities for Scan.com.
One significant development is our introduction to one of Plug and Play’s growth funds. They are continuing their investment in our journey by contributing around $250,000 in our current round. This ongoing support and investment underscore the robust and positive relationship we have built with Plug and Play. Their continued involvement and belief in our vision are incredibly valuable as we progress and grow our business.
Tips for Founders on Fundraising and Approaching Plug and Play
Q: Do you have any advice for founders who are considering approaching Plug and Play or navigating the fundraising process?
A: In the current market, which is tougher than it has been in recent memory, my key advice to founders is to allow ample lead time for fundraising. It’s crucial to start the process early and give yourself enough runway to manage it effectively.
Preparation is key, even before the actual fundraising begins. Founders should be in regular contact with their top 20 to 30 investors, updating them quarterly or every six months. It’s also important to be aware of your metrics and consider all available options. This might include bootstrapping for a longer period, making budget cuts to extend your runway, or reassessing whether your business is truly suited for venture capital backing. The market dynamics have shifted, and it’s essential for founders to realign their expectations and strategies accordingly.
This approach is not just specific to engaging with Plug and Play but is broadly applicable to fundraising in general. Effective preparation, realistic expectations and strategic planning are key to navigating the current fundraising landscape.