Introducing Stephanie Hoskins from Debtle

Q: Can you introduce yourself and your startup?

A: I’m Stephanie Hoskins, founder of Debtle. Originally, Debtle began as a negotiation tool for individuals with overdue medical debt. However, it has since evolved. Our platform now digitizes and automates financial assistance, discount programs, and negotiations. Beyond just negotiation, we’re focused on connecting patients and individuals with community resources. This helps them pay their bills or access community programs for which they’re eligible. Our goal is to simplify and humanize the process of dealing with financial burdens, making it easier for people to manage their debts and find the support they need.

Q: What inspired the idea for Debtle?

A: My journey into founding Debtle was deeply influenced by my years of experience in healthcare finance and strategy. I frequently encountered a significant issue in our call centers and revenue cycle departments—patients struggling to negotiate bills, seeking payment plans, or attempting to make payments. A critical observation was the disconnect between the amount of uncompensated care hospitals provided and the actual utilization of financial assistance applications by patients. This gap often led to potential charity care being wrongly categorized as bad debt. Given the requirements for non-profit hospitals in the U.S. to offer a certain amount of charity care under the Affordable Care Act, this misclassification represented a critical issue.
Motivated by these challenges, I initially embarked on a process improvement project focusing on patient payments. It quickly became apparent that there was no existing solution that adequately addressed these negotiation breakdowns. This realization stayed with me, even as I left the corporate world to pursue a PhD in financial economics. My studies in behavioral economics and game theory offered insights into the underlying reasons for these negotiation failures. Armed with this knowledge, I saw a clear opportunity to apply these theories to create a platform that could automate and optimize negotiations for both parties, leading to the birth of Debtle.

Why Forum Ventures?

Q: How did Forum Ventures become involved with Debtle?

A: Forum Ventures came into play at a pivotal early stage for Debtle. At the time, we had just developed our Minimum Viable Product (MVP) and successfully signed a clinic to conduct a proof of concept. It was this crucial juncture when we decided to apply to Forum Ventures, and fortunately, we were accepted. Their belief in Debtle wasn’t just about the innovation we were bringing to the table; it was also about recognizing the widespread issue we aimed to tackle—what happens when someone can’t pay their bills. Forum Ventures saw the potential impact Debtle could have across the industry and understood the essence of what we were striving to achieve. Their early support played a significant role in our journey, allowing us to explore and expand our solution in ways that could genuinely make a difference.

How a Founder Gets In

Q: What does the application process for Forum Ventures involve?

A: The application process for Forum Ventures was quite engaging and strategic. Initially, one of their employees reached out after identifying Debtle as an interesting startup. This led to an initial information call, which I found invaluable. It’s a step I highly recommend, as many accelerators offer the option to connect for more information before applying. Engaging in these preliminary discussions can significantly impact your application, providing an opportunity for them to learn more about you and your startup beyond the application form.

Following this initial call, where I gained a deeper understanding of their program and felt a strong alignment with our goals, I applied. The process then included another round of interviews before we were ultimately accepted. What set Forum Ventures apart for us, and a major reason we chose them among other accelerators we were considering, was their specific focus on B2B SaaS startups. This specialization meant that every speaker, vendor, and aspect of the program was directly relevant to our needs. Unlike more general accelerators, where resources might be spread across a diverse range of industries, Forum Ventures’ focused approach ensured that we received tailored support and insights that were directly applicable to our business model and challenges.

Q: Do you have any advice for those considering applying to Forum Ventures?

A: Beyond the initial step of reaching out and inquiring before applying, there’s much more you can do to enhance your chances and understand the value Forum Ventures can bring to your startup. My advice is to actively engage with the Forum Ventures community. They’ve expanded significantly since we participated, now hosting numerous events, managing a separate investment fund, and offering a platform that connects startups with potential customers. A practical step is to follow everyone associated with Forum Ventures on LinkedIn. This platform is where they frequently post updates about upcoming events and reminders about application deadlines. Engaging with their content, whether it’s liking, commenting, or sharing, can increase your visibility to the team. It’s also a great way to stay informed about unique opportunities, like special events where participants can pitch for investments and accelerator spots. Forum Ventures is known for their innovative approach, so keeping a close eye on their LinkedIn activities ensures you’re always in the loop about new opportunities and updates. This proactive engagement can significantly supplement your application, showcasing your interest and initiative.

Funding Structure at Forum Ventures

Q: Does Forum Ventures provide funding upon admission?

A: Yes, Forum Ventures does offer funding to startups upon admission. When we were accepted, they presented us with options regarding the investment amount and the equity exchange. Although the specifics might have changed since then, at the time, the options were either $50,000 for 5% equity in the company or $100,000 for 7% equity. These options give startups the flexibility to choose how much equity they’re comfortable exchanging for the investment. It’s worth noting that Forum Ventures continues to invest up to $100,000 in every startup that joins their program. For the most current details on their funding structure, it’s best to check their website, as they may have updated their terms or offerings.

Experience in the Forum Ventures Program

Q: What was the Forum Ventures program like once you were admitted?

A: The Forum Ventures program was a virtual experience, which was a significant advantage for us since it meant we didn’t have to relocate from Wisconsin. We were part of the New York City cohort, but the program’s structure allowed us to participate fully without being in the geographical location of our cohort. At the time, Forum Ventures also had cohorts in San Francisco and Toronto, and they’ve since expanded to include Chicago among other locations.
Our managing director (MD) had a strong background in finance, which I believe helped him understand the problem Debtle was addressing and support our solution effectively. This alignment with our MD was instrumental in our journey through the program. Forum Ventures is known for the high quality of its accelerator managers, which certainly was our experience.
The virtual nature of the program didn’t hinder the value we derived from it. Forum Ventures has an extensive network of supporters and mentors accessible through various tools they provide. This setup made it easy for us to request introductions and connect with individuals who could offer guidance and support. I found the openness and willingness of this network to engage with us particularly remarkable; I don’t recall any requests for introductions being declined.
Additionally, the program included weekly one-on-one touchpoints with our managing director. These sessions were incredibly valuable, offering personalized advice and feedback that helped us navigate challenges and capitalize on opportunities throughout our time in the accelerator.

The Most Valuable Aspects of Forum Ventures

Q: What were the most valuable aspects of the Forum Ventures program for you?

A: Reflecting on my experiences, especially having participated in various accelerators, two key aspects of Forum Ventures stand out as particularly valuable. First, the B2B SaaS focus of the program was a game-changer. This specialization ensured that every piece of advice, every mentor, and every resource was relevant to our specific business model and challenges. It’s a unique benefit that tailored the program to our needs in a way that generalist accelerators simply couldn’t match.

Second, the access to a well-curated network of investors interested in early-stage B2B SaaS companies was invaluable. Coming from a background outside the startup and VC world, without an existing network in this space, the program significantly leveled the playing field for me. We received interest from around 40 investors, which is a testament to the program’s ability to effectively match startups with investors who are genuinely interested in their success and fit their investment thesis.

This investor engagement process eliminated much of the time-consuming legwork typically involved in fundraising, such as compiling lists of potential investors, sending cold emails, and hoping for a response. The program’s showcase event, where investors could book meetings with startups, was particularly effective in facilitating these connections. Moreover, Forum Ventures’ growth platform further amplifies the value they offer, especially for startups in industries they are closely connected with. Their ability to fast-track introductions to potential clients and customers can accelerate a startup’s growth trajectory significantly. These components of the program—its focused approach on B2B SaaS and the strategic investor and client introductions—were the most impactful for Debtle, offering both immediate and long-lasting benefits.

Areas for Improvement in Forum Ventures

Q: What aspects of Forum Ventures could be improved, based on your experience?

A: Reflecting on my experience, I recognize a missed opportunity that could be improved not just in Forum Ventures but across many accelerator programs—the structure and facilitation of building advisory boards. While I’ve had the chance to connect with many incredible individuals throughout my startup journey, I haven’t yet managed to formalize any advisory board relationships. The challenge lies in understanding how to effectively establish these relationships, determining the expectations, and negotiating terms such as time commitments and equity compensation.

Accelerators provide a wealth of networking opportunities, connecting startups with mentors and industry experts willing to support and guide emerging businesses. However, there’s a gap in facilitating long-term mentorship or advisory relationships. Many of us, especially first-time founders, struggle with navigating this aspect. We might encounter numerous potential advisors but lack the guidance on how to approach them for a more structured, ongoing relationship.
I wish there had been more structured support or resources provided on how to convert one-time mentor meetings into long-term advisory roles. Identifying and suggesting potential advisors with relevant industry expertise who are actively seeking advisory positions would be incredibly beneficial. The challenge is exacerbated by the intense pace and workload of accelerator programs, leaving little time to thoroughly explore and establish these critical relationships.

Despite this, my time with Forum Ventures was invaluable, significantly propelling Debtle forward and providing essential early belief in our mission. The program excelled in areas like preparing us for fundraising and due diligence, highlighting its strengths in supporting startups. Yet, enhancing the framework for establishing and managing mentor and advisory relationships could further elevate the value provided to founders, particularly those navigating the startup ecosystem for the first time.

Real-World Impact of Forum Ventures on Debtle

Q: Can you discuss the real-world impact of Forum Ventures on your startup, including any growth metrics?

A: The journey through Forum Ventures had a profound and somewhat unique impact on Debtle, differing from the typical accelerator outcome. Initially, the goal for many founders post-accelerator is to secure a pre-seed or seed funding round. However, our path took an unconventional turn when we received a term sheet and commitment from an angel group early on. This development led us to opt out of the accelerator’s showcase, with plans to participate in the next round when we were ready to raise funds. The timing coincided with personal milestones, adding complexity to the fundraising process.

Despite these challenges, the decision not to pursue immediate fundraising allowed us to focus more on customer engagement rather than investor relations. The initial investment we secured enabled significant progress for Debtle, including stretching our resources further than anticipated. A pivotal achievement was attracting a CTO to join as a co-founder, which was a crucial step for us, especially coming from a non-tech background without an existing network in the tech industry. This partnership not only brought in essential technical expertise but also added credibility and social proof to our venture.

The investment and subsequent developments helped us achieve crucial milestones, such as conducting a successful proof of concept and pilot, engaging in extensive customer discovery, and refining our product-market fit. Furthermore, the experience gained from Forum Ventures enhanced our understanding of the sales process, particularly in navigating the sales funnel and improving our approach to moving potential deals forward. In summary, the real-world impact of Forum Ventures on Debtle can be seen in our ability to navigate early-stage challenges, secure key partnerships, and lay a solid foundation for future growth, all of which were significantly influenced by the insights, support, and opportunities provided by the accelerator.

 

Post-Accelerator Relationship with Forum Ventures

Q: How has your relationship with Forum Ventures evolved since completing the accelerator program?

A: Post-accelerator, my relationship with Forum Ventures has been somewhat variable, largely due to the inherent busyness of running a startup. Despite this, there have been instances where the continued support from Forum Ventures proved to be quite valuable. For example, whenever they sign a new client to their platform that presents a potential opportunity for Debtle, reaching out for introductions has always resulted in positive and supportive responses. This demonstrates their ongoing commitment to the success of their alumni. Moreover, the supportive network extends beyond just the formal program. I’ve observed and experienced that if a founder’s initial startup doesn’t succeed, Forum Ventures is open to supporting their next venture. This was evident in my cohort and continues to be a trend, highlighting their belief in the potential of the founders themselves, beyond just the specific startup idea.

Additionally, the network has facilitated connections and opportunities beyond the direct interactions with Forum Ventures. For instance, my original co-founder, who is also my husband, transitioned out of Debtle to allow for a new CTO to come on board. His subsequent venture received support through connections made within the Forum Ventures network, further illustrating the lasting impact and support of the community. Maintaining connections with other founders from my cohort has also been beneficial, as many of their startups continue to thrive. This shared journey has not only enhanced my professional network but also provided a sense of camaraderie and shared experience that is invaluable. In essence, the relationship with Forum Ventures and its network post-accelerator has significantly expanded my network and provided ongoing opportunities for growth and collaboration, despite the natural ebbs and flows of communication that come with the demands of startup life.

Final Advice for Applying to Accelerators

Q: Do you have any final advice for those considering applying to an accelerator?

A: The journey through an accelerator is both rewarding and demanding, and my advice to prospective applicants reflects the lessons learned from my own experiences. First and foremost, ensure that you have the necessary time and bandwidth to fully engage with the program. Attempting to balance too many major life events or commitments can significantly detract from your ability to benefit from and contribute to the accelerator. I’ve been in a situation where I overextended myself, and in hindsight, I realize that not only did it limit what I could gain from the program, but it also affected the impression I made on others.

Moreover, when selecting an accelerator, it’s crucial to consider the fit between your startup’s focus and the accelerator’s expertise. The background and knowledge of the managing director (MD) and the specific industry focus of the accelerator can greatly enhance the relevance and value of the advice and support you receive. For startups in niche areas such as health tech or climate tech, seeking out accelerators that specialize in these fields can be particularly beneficial. These focused programs often have a deeper understanding of the unique challenges and opportunities within your sector and can provide access to a more relevant network of mentors, investors, and potential clients.

Many accelerators are recognizing the importance of industry specificity, offering tailored support that can directly impact your startup’s growth and development. Whether it’s connections to potential customers in your field or introductions to investors who are actively seeking opportunities in your industry, the right accelerator can significantly accelerate your journey. In summary, ensure you’re ready to fully commit to the accelerator experience, and choose a program that aligns closely with your startup’s industry and stage. This strategic approach will maximize the benefits you receive, making the sacrifice and dedication required to participate truly worthwhile.