In this episode of the Metric Stack Podcast - a must-listen for anyone interested in the future of healthcare and information technology - hosts Allan Wille and Lauren Thibodeau sit down with Duncan Weatherston, CEO of Smile Digital Health, a health data platform. Duncan talks about his company’s mission to transform global healthcare through innovative data sharing and interoperability. We learn about the origins and growth of Fast Healthcare Interoperability Resources (FHIR), a set of rules for exchanging electronic health care data, and why this standard is key to revolutionizing the way healthcare information is shared.

Throughout, Duncan's passion for information technology and optimism for the future of healthcare shines through. He describes the monumental task of establishing universal terminology and standards for sharing information, comparing it to the birth and evolution of the internet. He also shares his excitement about Smile Digital Health's pivotal role in this information revolution and the impact it will have on healthcare accessibility.

We learn how health facilities in North America and Europe are using innovative technologies to break down data silos and improve patient outcomes, while positively moving the needle on metrics like cost and patient satisfaction.

When asked about the future, Duncan believes the convergence of medical knowledge, large language models and patient data will create a system that allows consumers to manage their health just like they manage their banking, with a mobile app. The result - better access to healthcare for everyone.

In this episode of the Metric Stack podcast, James Neufeld, CEO of Samdesk, digs into the critical role metrics play in communication between company leadership and board members, particularly post-Series A and B funding rounds. James talks about the universality of metrics as a language for investors, who often lack deep domain expertise and rely on financial, user, and adoption metrics to gauge opportunities.

James shares insights from his experience with the board, describing how they evolved from merely tracking performance to understanding the underlying drivers of their key metrics. He talks about Samdesk’s initial struggles in determining which metrics were leading and lagging indicators and the challenges of measuring success based solely on a first-principles driven culture. Lessons learned from these early days inform current practices at Samdesk, where they focus on actionable metrics that directly influence business outcomes. As an example, he describes how measuring customer satisfaction, with metrics like Time to Customer Complaints (TCC) speeds up innovation at Samdesk, while combining first principles and common sense actions to derive meaningful insights.

Since preparing for and achieving Series A and B funding Samdesk has grown from using a primarily first-principles approach to one that combines those principles with a metrics-focused strategy. They’ve also dealt with the rapid and pervasive changes brought about by COVID-19 by adapting and continuously learning, from both successes and failures.

James describes how Samdesk communicates with the board by combining qualitative (customer experiences) and quantitative (metrics like ARR and Churn) information. His final bit of advice – pay attention to your metrics but don’t be paralyzed by them. They’re not a substitute for talking to your customers. You need to do both.

In this podcast interview, Allan Wille and Lauren Thibodeau discuss tech company valuations with Ed Bryant, President and CEO of Sampford Advisors. Ed defines valuation as the price a buyer will pay for your business either by purchasing it outright or as part of a merger and acquisition transaction. He suggests the only way to learn the true value of your company is to actually go to market and get bids from potential buyers. He distinguishes between financial buyers (private equity, venture capitalists) and strategic buyers (companies acquiring other companies), noting that the lines between them are blurring due to strategic buyers often being backed by financial players.

We look at factors that influence valuation (scale, growth, profitability, and retention), with Ed stressing the importance of profitability for later-stage investors and acquirers. The conversation touches on the cyclical nature of mergers and acquisitions (M&A) and how market conditions significantly impact the valuation environment. Ed also describes some common mistakes founders make, such as being overly focused on technology and not paying enough attention to key business metrics like growth and customer retention.

The interview concludes with Ed sharing his perspective on the current state of the market, describing it as a bifurcated market with healthy businesses receiving strong valuations while others face challenges. He predicts a recovery in 2024, anticipating increased activity and a positive market for software M&A transactions.

For those interested in current valuation trends, Ed suggests resources like Sampford Advisors' monthly market report, content from venture capitalists like Tomasz Tunguz, and content generated by the broader VC, private equity, and M&A communities.