Oro Health Revenue, Valuation & Funding (2024)

[00:00] Hey folks, my guest today is Dr. Bourgeault. She obtained her Bachelor of Science degree from McGill University before returning to Ontario to study at the Northern Ontario School of Medicine. In 2011, she received her doctorate medicine and then completed a five year specialization in dermatology at Laval University. She co founded Oro Health in 2020 to help with asynchronous telemedicine specializing in dermatology. Dr. Bourgeault, you ready to take us to the top? [00:23] >> Yes, definitely. Thanks for the invitation. [00:25] You bet. Okay. So how does a doctor learn to code to build a SaaS tool? [00:30] >> So, the doctor doesn't learn to code. The doctor has an idea and then hires coders to build the SaaS tool, basically. [00:37] Makes a lot of sense. Now, there's a lot of doctors that have these great ideas and they never know how to motivate, lead, or find someone to actually write the code. Tell me about how you got your MVP built. [00:47] >> Yeah. So, what happened was that in 2017, one of my co founders, Doctor. Dore, who's another dermatologist, him and his brother were having these discussions about how to increase access for patients for dermatology. So, you know, they had this idea, we decided to bring it to the forefront and use technology to increase access for patients. So, we hired a small firm of developers in Quebec City and we presented them with our idea and we worked for [01:20] >> a few months to develop our MVP, which is called dermago.ca. [01:25] Interesting. Okay. Can I ask you how much you paid the dev shop to get the MVP off the ground? [01:31] >> How much did we pay? We probably paid about $20,000 to $30,000 out of pocket just to get this MVP out. Yeah. [01:39] And what year was that? [01:41] >> 2017. [01:43] 2017. Okay, very cool. And then talk to me about today. Who's buying this technology and about how much are they paying per month to use it? [01:49] >> Yeah. So basically what happened is that throughout, you know, once we released Dermago in 2018, we started doing consultations and that's pretty much how we paid for our tech is by seeing patients. And we slowly but surely increased the amount of volume of patients on our site. And at the same time, we had other people, other physicians, other clinics saying, Hey, we'd like to have a tool, a similar white label tool for our clinics, for our [02:18] >> specialties. And when we created this MVP, there was no, you know, plug and play sort of like the Shopify of medicine that you could just, you know, have a clinic online within a few days based on your image, based on your colors, based on your specialty. So, we decided to create Oro Health because of the success of Dermago to provide this possibility for other physicians and other healthcare professionals. [02:46] So, that's who you're selling to? [02:47] >> Yeah. So, what we did is we took all the IP from Dermago and decided to create the best dermatology platform to be able to offer it in different jurisdictions, different countries for dermatology, but at the same time, concentrate on building a scalable platform that is white label and can be used by any other specialty if they want to create their own online clinic. [03:16] And what do these online clinics pay to use a technology per month on average? [03:19] >> So, we were modelizing it actually. So, we're still in the, you know, we just raised a seed round to make this tech. So, we rebuilt the whole tech and we just released our new platform at the end of November. So, we migrated our old Dermago onto this new platform and now we're starting our commercialization plan to go and have new Dermagos across the world. Basically, we do have a few announcements to make in the new year [03:52] >> and also to start our more white label. [03:55] And so, doctor, what was the size of the seed round? [03:58] >> 3,000,000. [03:58] 3,000,000. Okay. Wonderful. And is it fair to say that you guys are pre revenue in terms of a SaaS model, Yeah. [04:06] >> I would say our major client right now is Dermago. And we also launched another clinic which called Tonteste Poinciere, which is a virtual STI clinic. [04:17] Okay. So, Dermago product, which really is seeing patients, making money off seeing patients, how much revenue did that do last year to help support the new software? [04:26] >> We make about $150,000 per month. [04:32] Okay, got it. So that, I mean, that's nice scale. You know, now, did the investors respect that when you went out for the seed round? Did they give you credit for selling that much even though it wasn't SaaS? [04:41] >> So, what happened is that, you know, because Dermago is a medical clinic, so Dermago is a medical clinic that uses the technology of oro. So, we do have an MSLA, a Master License Service Agreement between our MVP and our new tech company. [04:55] Separate companies, though. [04:56] >> Separate companies. [04:57] And [04:59] >> Dermago so is definitely the biggest client of Oro Health as of now. [05:04] How much does Dermago pay Oro Health? [05:06] >> 50% of its revenue. [05:08] Oh, wow. So, $75,000 a month already on Oro Health. [05:12] >> Yeah. So, what we Our modelization for dermatology and specialty clinics is that, you know, I mean, physicians are busy, they're busy seeing patients and they need to see patients. That's, you know, that's what they do, right? They don't do coding, like you said, and they don't also do Google AdWords or online marketing. So, what we offer is, it's more of a PaaS, but a business turnkey PaaS. So, you want to start a dermatology clinic in Texas? [05:43] >> Well, you come see me and we can plug and play. Have- [05:45] You know, doctor, that makes complete sense. And it's your, you're an operating system for anyone that wants to launch, it's fantastic. But just to be clear, your model is not going to be to take 50% of everyone's revenue signs up for you. You just did that with Dermago because you own that business and you want to give a sweetheart deal back to Oro Health. Is that right? [06:01] >> We do it with Dermago because Oro Health also takes care of all the user acquisition. [06:06] So, you going to charge 50% ongoing to new customers that are not you? [06:09] >> So, it depends if they want us to do the user acquisition and the ad buying. That includes If the ad buying, the they want to do a white label, you know, they're in, you know, their family medicine clinic and they want to also have an online presence, which we see that there's an increase in these types of physicians with pandemic. And our bet is that everyone's going be online within the next few years. Then they can [06:31] >> be, you know, it can be a monthly I more see. Or a [06:34] >> But one customer today, Dermago. [06:36] Yep. Amazing. Okay. Love this story. [06:39] >> There's Dermago and then there's yourtest.ca, which is an STD clinic that we just launched a few months ago. So [06:45] But but the way to think about Oro Health revenue today is 50% of Dermago's, which is about $75,000 a month in revenue. Exactly. Amazing. Okay. So you raise a 3,000,000 seed round. Most people are selling 10 to 20% of the business in those rounds. Did you do the same? It was around there? [06:59] >> Around there. Yes. [07:00] Okay. So talk call it like 20 to $30,000,000 post money valuation, something like that. [07:04] >> We have a So, valuation is at 10,000,000 pre 10,000,000. [07:09] Okay. So, 13,000,000 post. That's not that's not horrible. Where are you gonna use the money? [07:13] >> So, for the tech. So, the acceleration of the tech. And it's a hard time to hire people in tech. So, if anyone needs a job, we're hiring. [07:22] There's the promoter, the doctor turns to marketer. [07:26] >> Exactly. And we want to, you know, push the commercialization. So, we want to go into a series A rapidly to just bring it to the next level in terms of a commercialization team. [07:37] What's the team today? How many people? [07:39] >> We're 17 now. [07:40] Many engineers? [07:43] And are you still using that same original agency you used to do the MVP? [07:46] >> No, it's all in house. [07:48] Okay. Why'd you make that decision? [07:50] >> So, we decided to really keep the tech in house and, you know, create Because we do have a good environment for tech in Montreal. So, we have a lot of good candidates and we wanted to really build something that was the highest security standards and something that would be, you know, our own group. So, we hired our CTO, Bruno Morel, which he's been with us since last September, and he slowly but surely built his tech team [08:18] >> so that we have, you know, the best developers mixed with some great data scientists so that we can work together as a team. [08:28] And doctor, what's your go to market? I imagine you're eating your own dog food. So, you can go speak at conferences for these people and say, by the way, I'm using my own software to build Dermago, which already does $175 a month in revenue. You should copy me, use my software. Is that sort of the go to market? [08:42] >> And not only my software, but also my business intelligence that we've, you know, created over the last two, three years. So, with our user acquisition and with how to basically organize their clinics so that they can make an extra amount of revenue per month. [08:58] I love this. Do you own a 100% of the business before you raise? Are you the sole founder? [09:03] >> We're three. [09:04] Oh, three of you guys. Did you just split it 33 each? [09:07] >> Pretty much. [09:09] You didn't wanna debate each other. Just said, you know what? We're all equal, 33 each. Exactly. Alright. Fair enough. Now you guys each own approximately like 27% each and the investor owns, call it 10 to 15%, and you're thinking hard about what the Series A could look like. Exactly. Very cool. What do think you need to do to go out and raise a competitive Series A? [09:29] >> I think we need to demonstrate that Well, we've already demonstrated that our MVP is successful. So, you know, there's a product and there's a demand. Now we need to show how efficient our tech is and we need to show how, you know, we haven't done any really trade shows or anything so far. So, we've had a lot of people knocking on our door without, like, basically trying to put the phone down so that we didn't have [09:56] >> to answer because we didn't have a product. So, now we have our product and I think, you know, we do have a great plan for the next six months. And if we just stick to our plan and we make things happen the way they're supposed to happen, then we're going to go straight into a great Series A [10:11] love this. All right, doctor, let's wrap up with the famous five. [10:13] >> Number one, favorite book. [10:15] >> Favorite book. [10:21] >> What- man. [10:23] Can skip that episode. [10:24] >> The Croda, there's a- I don't remember it, but it's- I love Reese Witherspoon's book club. So, any book that she suggests, I basically read one a week. [10:35] I love that. Okay. Number two, is there a CEO you're following or studying? [10:40] >> Is there a CEO that I'm I know that So one of our investors, Alex from MCI, we really respect him a lot. So, you know, he really wants to bring a specific tailored medicine to patients. So, we really love what he's doing and we keep following him. [10:58] And doctor, what's your favorite online tool for building Oro Health? [11:02] >> My favorite online tool, I would say my team's favorite tool is Slack, which I'm learning, but I'm definitely learning in this process. It's not stuff that we learned in medical school or residency. So, I would say to keep in contact with all of my my team throughout the day would be Slack. [11:19] Very cool. And number four, how many hours of sleep do get every night? [11:23] >> I typically get at least seven. [11:25] That's great. [11:26] >> And situation, married, single kids? [11:28] >> I'm married with two kids. [11:30] Oh, wow. Busy. And do you mind me asking how old you are? [11:33] >> I'm 36. [11:34] >> 36. [11:35] Last question. Take us home. Something you wish you knew when you were 20. [11:43] >> Just keep going and great things are going to happen. You don't have to have a specific plan. You can change your mind. I started, you know, in political science in school, and I changed to science. So, you just keep going with the flow and keep working hard and things are just gonna happen. [11:59] Guys, she hustled. She got her doctorate. She launched her own facility, Dermago, back at clinic back in 2017. Now does $150,000 a month in revenue and said, you know what? I need to build software so that anyone else can do what I just did. She's now built that, raised a $3,000,000 seed round at a 13,000,000 post money valuation to scale that up. 50% of the clinic's revenue goes to Oro Health, the software company. So the software company [12:21] is already doing almost $1,000,000 run rate right now, looking to scale, add on additional people, 17 people on the team, eight full time engineers in house, got the MVP built with an outsourced dev shop for $20,000. She's scrappy. I love it. Doctor, thanks for taking us to the top. [12:34] >> Thank you very much. Have a good day. [12:37] One more thing before you go. We have a brand new show every Thursday at 1PM Central. It's called Shark Tank for SaaS. We call it deal or bust. One founder comes on, three hungry buyers, they try and do a deal live and the founder shares back end dashboards, their expenses, their revenue, ARPU CAC, LTV, you name it, they share it and the buyers try and make a deal live. It is fun to watch every Thursday 1PM [13:02] Central. Additionally, remember these recorded Founder interviews go live. We release them here on YouTube every day at 2PM Central. To make sure you don't miss any of that, make sure you click the subscribe button below here on YouTube, the big red button, and then click the little bell notification to make sure you get notifications when we do go live. I wouldn't want you to miss breaking news in the SaaS world, whether it's an acquisition, a big [13:24] fundraise, a big sale, a big profitability statement or something else. I don't want you to miss it. Additionally, if you want to take this conversation deeper and further, we have by far the largest private Slack community for B2B SaaS founders. You want to get in there. We've probably talked about your tool if you're running a company or your firm if you're investing. You can go in there and quickly search and see what people are saying. Sign [13:46] up for that at nathanlatka.com/slack. In the meantime, I'm hanging out with you here on YouTube. I'll be in the comments for the next thirty minutes. Feel free to [13:55] let me know what you [13:55] thought about this episode and if you enjoyed it, click the thumbs up. We get a lot of haters that are mad at how aggressive I am on these shows, I do it so that we can all learn. We have to counter those people. We got to push them away. Click the thumbs up below to counter them and know that I appreciate your guys'support. Alright, I'll be in the comments. See you.