How AlzWell CEO Nicholas Focil grew AlzWell to $1.2M revenue with a 7 person team in 2024.

hey folks my guest today is nick offoccio he is the chairman and founder of fibo a health toolbox sas app used globally by chronic condition patients to help make life a little easier after attaining his biochemistry degree he worked in several positions and is the ceo of fomat medical research in addition to his role at fibo nick you're ready to take us to the top let's do it all right so people want to follow along it's fibofebohealth.com uh tell me who's paying for this product how are they using it right now it's entirely um there's no revenue there is we're not looking to make any money on it for about the next two to three years um it's entirely gonna be funded for for growth at this point okay so how are you paying bills have you raised a bunch of capital or what yeah we've been raising uh we've done we just finished our safe round we uh oversubscribed it actually so we're pretty excited about that um how much did you raise it was a hundred and sixty thousand uh safe round one at four million dollar evaluation um and the that was that will take us to a roughly about end of june and then we're looking to raise uh safe round two our projection value at that point will be about eight million we're looking to about a total between the first round which was three percent the second round is about gonna be six percent okay second round is 56 percent of what six percent six percent six percent yeah a total of nine percent so so just when did you write the first line of code for the tool uh this was about two years ago okay so how have you if you just raised 150 grand today how have you funded salaries and things for the past two years so this is a by-product of my company format medical research one that i'm a ceo for and that's been it's a product of it so it's been painted salaries self-funded and self-funded let's say myself cancer so sorry a product so you have an agency and this is a product of the agency correct okay and what does the agency do clinical research we do research for a living okay interesting so in 2020 give me a sense of the size of the agency how much revenue did it do medical research whatever the agency is yeah yeah so you know seven eight figures got it so so i mean what so like eight to ten million something like that somewhere around those figures i mean i don't want to enter into too much of those details if you may if we may so well so so tell me why so eight to ten million dollar agency revenue it's it would be hard for me to get distracted from such a big revenue stream to go build a some sas tool why how are you balancing your priorities so i honestly have a phenomenal team like it just you know top top top-notch team people that see the vision of this company see the vision of the software and um obviously have some skin in the game as well and so i i think i lean heavily on them also i know i don't sleep and um i see this future in the healthcare space needing this chronic condition patient there's a huge need for them so while i was obviously managing this company i i noticed this huge elephant in the room and figured i needed to solve it or at least try to attempt to so how much capital to date has the agency invested into the sas company fibo health uh i don't know i don't have any uh direct number for you i would i would guess somewhere five to seven fifty okay uh 750 000. that's correct and then the the obvious question is you have so much revenue coming from the agency why go raise 150 grand from angels why not just keep funding from the agency and keep the equity right that is a good you know there's multiple reasons um kind of one of the bigger ones if you will when you and i actually wrote about it too we talked about your book recently and i also wrote about this concept there's different models of business depending on what type of business you know brick and mortar you have to solve in certain different ways and technology certain ways and in this particular space it's all about quick growth it's all about you know being in the market immediately and being there quick and for that you need you need to infuse it with a lot of capital um and you need to have top talent you need to have top connections it's a different model of business than the one we do for research which is more structured it's more slow moving which you know that's more much more organic if you will oh what's going on there youtube good to see you guys now imagine this you love watching these interviews with sas founders but imagine if we took all of the valuation data out from over 2807 interviews i've done manually saves you a lot of time well we've done this we've built it into the beautiful interface inside of finderpath check this out i'll show you how you can access this in a second but you log in you connect your stripe account you see your valuation real time you can see what it changed over the past 88 days and even set goals for valuation this year now the secret evaluation is there's many different ways to value a sas business so the reason you're gonna see three or four different valuations inside of your frowner path dashboard this is all free by the way is because depending on who's doing the buying of your sas company you're gonna get a different valuation a vc is gonna pay a different valuation private equity firm is different if you're gonna do a minority sale that's different and if you sell the whole business that's a different valuation you can see all those when i hover over here right so the teal is what a vc would pay yellow is what private equity and red is if you sold the whole thing outright now what's cool about this is this is not built off random data again you guys hear these interviews on youtube all these datas are built from real time valuation data points founders share with us on the show so traction 1.2 million seed round 3.7 raised they sold 22 to their business go in here and filter by the event maybe you only want to see companies that have sold the whole business well here are a bunch that have been acquired the valuation and the multiple maybe you're going out right now and you're raising your seed round well go in here and look at all this recent seed deals that went down what they raised what valuation they raised at and what percent that they sold there's never been a larger data set of sas valuations than what you can get now inside of founderpath and we're thrilled to bring it to you all right we're going to go back to the youtube video here in a second but if you want to check this tool out if you want to jump in and sign up you can check it out for free to get your valuation at this link this link founderpath.com forward slash products forward slash evaluations or if you go to founderpath.com and hover over products click on get your evaluation here and go ahead and sign up to give it a whirl again all that valuation data live right inside the platform i hope to see you there all right let's jump back into the interview i understand that but if you have a 10 million dollar agency it would seem weird that you're out spending your time and energy raising 150 000 especially when you've already put 750 grand from the agency into the business it just i'm missing something here i it's a different also by the way another thing is i'm not the sole owner of the um of the agency as you say i'm a shareholder but i'm not a soldier i'm the ceo of it um and you know it's part of it's just part of a package if you will fibo i am the sole owner now obviously i've been diluted by raising but it is a different um it's a different company i see so so nick owns right now about 90 well i mean 98 of fibo and a couple percentage points go to the people that just put 150 grand plus you have the employees that have been have given shares there's a certain amount of stock given for key employees that we've already researched that on the side i see yeah so an employee stock option pool how much did you set aside for your esop pool usually it's like 10 well you're sort of the same correct okay got it so 10 esop pool you know you own 88 percent and maybe these new investors own one or two percent something like that about three percent correct okay got it so got it got it got it okay interesting um let's talk a little bit more about the why behind this right so give me an example why you're building who's using it what are they paying you for what are they or not paying you yet but what are you using it for so imagine a world that where you know one one in three something some some people say one and two uh people suffer chronic conditions in the united states they're like well that's that's crazy because the word chronic condition is defined loosely you know hair loss which i i have if you will that's considered a chronic condition it's not life-changing right but when we're thinking of life-changing bonding conditions think lupus crohn's uh parkinson's alzheimer's those you the medalli current modality is you you see your doctor you get diagnosed you you get on a treatment plan and you then check in with your doctor maybe every four to six months but there's a direct dependency on you and the physician you and the infrastructure you in the system if you will every four to six months what we're trying what we've noticed is depending on the size of...