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Jim Sweeney. He\u2019s the CEO and one of the founders of Clarify Medical. He began his entrepreneurial journey at Sharp Hospital where he worked full-time delivering hospital supplies while still in high school. He then spent 3 years in the US Army Medical Corps where he ran a remote, medical service dispensary serving 2500 families in Germany. He received a degree in business from San Diego State University. James has founded 12 medical companies including Caremark, Caps, Corum, Bridge Medical, CardioNet and co-founded Owned Outcomes. He\u2019s also led a successful leveraged buyout or LBO with McGaw Labs which he took public and is now owned by BBraun. His financing history includes raising venture capital and expansion capital for his ideas leading to over $25B in exit values of companies he founded.

Famous Five:

• Favorite Book? \u2013 Zero to One
• What CEO do you follow? \u2013\xa0 David Hale
• Favorite online tool? \u2014 N/A
• Do you get 8 hours of sleep?\u2014 Between 4-6
• If you could let your 20-year old self, know one thing, what would it be? \u2013 Jim wished he knew \u201cthat the government would have the amount of influence on health care that they have, today\u201d

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Time Stamped Show Notes:

• 01:49 \u2013 Nathan introduces Jim to the show
• 02:53 \u2013 Clarify Medical has a first-mover advantage in the dermatology space
• • 03:00 \u2013 They have well-established treatments for various skin diseases
  • 03:17 \u2013 They\u2019ve developed a device that will enable people to self-treat at home, using their smartphones
  • 03:33 \u2013 The device will be launched directly to the patients
  • 03:40 \u2013 The device is called Clarify Mobile UVB treatment system
• 03:59 \u2013 There are over 33M Americans who suffer from skin disease
• 04:21 \u2013 The device can be connected through the smartphone
• 04:51 \u2013 Jim has raised a little over $2B in venture capital
• 04:55 \u2013 Jim had an exit value of $25B for his companies
• 05:06 \u2013 There are exits via IPO and sales
• 05:40 \u2013 Jim shares why he decided to have an LBO with McGaw Labs
• • 05:56 \u2013 Jim had been an employee of the company so he acquired the company with prior knowledge of what their issues were
  • 06:26 \u2013 The deal was in mid-October 1990
  • 06:33 \u2013 The company\u2019s valuation
  • 07:27 \u2013 Jim bought the company with his friends
• 07:47 \u2013 The Clarify Mobile UVB treatment system device will sell for $600 or can be leased for $39 per month
• 08:15 \u2013 Jim expects to have long relationships with their patients because some of their skin diseases are life-long conditions
• 08:30 \u2013 If the device didn\u2019t exist, patients would spend $100 annually for therapeutic drugs which have various side-effects
• 09:30 \u2013 Obamacare has allowed Clarify to go directly to the consumers
• 09:43 \u2013 Jim thinks the total costs of Obamacare haven\u2019t been exposed
• 10:35 \u2013 Jim expects more medical companies will go directly to consumers
• • 10:42 \u2013 The bad news is that people will spend more directly from their pockets than in the past
  • 10:50 \u2013 The good news is doctors are now seen as customers
  • 11:11 \u2013 The solution for healthcare is for patients to be more engaged with their healthcare providers
• 11:33 \u2013 Clarify will start generating revenue from the device later this year
• 11:36 \u2013 Jim has already raised $6M and is still looking to raise another $12-15M in the next few months
• 12:00 \u2013 Jim doesn\u2019t have a scientific explanation on how he came up with the pre-money valuation
• • 12:22 \u2013 All of Clarify\u2019s financing at this point is from their pre series A round
• 12:43 \u2013 Team size is 12 but will double in the next few months
• • 12:50 \u2013 The company is based in San Diego
• 13:00 \u2013 Jim can\u2019t disclose the cost of making the device
• • 13:43 \u2013 The cost will carry a respectable margin
  • 13:47 \u2013 The app will be sold for $9.99 per month, on a subscription basis
• 14:25 \u2013 Jim believes that Clarify\u2019s valuation will be into the billions for IPO exits
• 15:45 \u2013 The Famous Five

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3 Key Points:

• More healthcare providers are now going directly to consumers and are skipping the third-party service.
• Knowing a company by heart will make it easier for you to make a fair valuation.
• Making your employees a share holder of your company will definitely change their attitude towards the job, leading to a more successful company.

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Resources Mentioned:

• The Top Inbox\xa0 \u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
• Organifi \u2013 The juice was Nathan\u2019s life saver during his trip in Southeast Asia
• Klipfolio \u2013 Track your business performance across all departments for FREE
• Acuity Scheduling \u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Host Gator\xa0\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible
• Audible\xa0\u2013 Nathan uses Audible when he\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
• Freshbooks \u2013 Nathan doesn\u2019t waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW
• Show Notes provided by Mallard Creatives