Facts to know during VC pitch

Question 1

Revenue by quarter in 2023

Answer 1

Q1 = $350k
Q2 = $275k
Q3 = $312k
Q4 = $380k

Question 2

Q of Q growth from 2022 to 2023 for each quarter as a percentage?

Answer 2

Q1 = 78%
Q2 = 49%
Q3 = 44%
Q4 = 92%

Question 3

Revenue by month in 2024

Answer 3

$111k, $104k, $132k, $61k, $142k, $71k, $86k, $100k, $125k, $116k, $130k, $133k

Question 4

Close rate (hospital, private pay)

Answer 4

Hospital = 57%
Private pay = 24%

Question 5

Elevator pitch

Answer 5

SilverStay helps social workers discharge complex patients to assisted living in days to hours, disrupting the $723B post-acute care market with the click of a few buttons.

Question 6

Top three customers (contract and private pay)

Based on Q4 ‘24

Answer 6

Contracts as of 1/2024 (rev produced in past for months):
1. UMMS ($150k)
2. JHH ($38k)
3. MedStar ($20k)

Private Pay (1/2024)
1. Levindale ($35k)
2. UM Capital Region ($17k)
3. Brightview ($15k)

Question 7

What are you going to do with funds?

How do you scale and how do you use funds?

How will adding money fuel the growth

Answer 7

Two ways:
1. Geographic deployment teams to embed platform in new health systems
2. MCOs

Use of funds:
1. Development work $2M
2. Deployment marketing $2M

Question 8

Who are your competitors?

Answer 8

1. Internal social work teams
2. Classic placement agencies
3. Do nothing

Question 9

Who are potential acquirers

Answer 9

1. MCOs, for example Kaiser
2. Placement agencies, for example APFM
3. EMR and discharge software companies, for example CarePort
4. Case management companies, for example Evolent Health

Question 10

Why this company now?

Answer 10

Emergency department crowding puts patient safety and access to care at risk.

Silver Tsunami is overwhelming the health system.

Hospitals need flexible capacity now; LOS is trending up everywhere.

Assisted living is a high-friction, underutilized resource

Question 11

Year over year growth

Answer 11

62.5%

Question 12

What traction do we have?

Answer 12

60% YoY GROWTH
Contracts with every major health system in Maryland (UMMS, JHU, Adventist, Ascension, Sinai, MedStar, etc)

Question 13

How much are you raising?

Answer 13

$4M

Question 14

What are your revenue projections for the next three years?

Answer 14

2024: $2.6M
2025: $5.0M
2026: $10M

Question 15

Who else are you talking to?

Answer 15

Many other fine organizations just like yours

Question 16

Who’s John Curtain?
What space does he like?
What’s his revenue threshold?
What kind of businesses does he invest in?

Answer 16

Waterline Ventures (position?)

8/2023:
He likes the space (Referral space/care management). For Series A needs $1M+ in rev, and wants to talk when we’re about that number.

5/2023: Capital efficient business that doesn’t need to raise lots of money to get to an exit

Question 17

Great question to ask VC about the fundraising market

Answer 17

What’s surprised you over the past year?

Question 18

What are Waterline’s four KPIs for an investment?

Answer 18

As of 5/2023
2. 1. One million of AAR is a milestone that matters
2. Established customer base that are referenceable
3. Keeping the round small
4. $3 to $5m A round is right in line with their thinking

Question 19

What are our gross margins and how are they trending?

Answer 19

Q1 (‘24) = 57%
Q2 (‘24) = 61%
Q3 (‘24) = 67%
Q4 (‘24) = 75%