How VideaHealth CEO Florian Hillen grew VideaHealth to $6.8M revenue and 300 customers in 2024.

hey folks my guest today is florian hill and he's the founder and ceo of vidya health a dental ai company prior to video health a fluorine conducted a research at the intersection of engineering and social science at mit's institute for data systems and society as well as at harvard business school he also worked with mckinsey and company and founded ninu a digital health tech startup he holds two master's degrees from mit in computer science and technology policy and a bachelor's degree in management technology he completed the first german state exam in medicine as well florian you ready to take us to the top yeah are you also are you also a dentist i'm not i'm not uh but the first two years of med school were with dentists in germany so so i had to learn all of that as well i see okay so that's where like the dentist part of this comes in huh that's right that's right exactly okay so what is video health what are when customers pay for is there are these dentists that are paying you directly and if so what do they get when they pay yeah so our yes dentists could be our customer they are but the major customer really are dental chains they're called dsos dentist service organizations and so you can imagine that they have actually up to thousand practices or even more right and then they employ the dentist and so those are really our primary customers so more enterprise level actually um but what do they get so we are the leading provider of a diagnostic ai platform we call it video assist and that means every time you nathan go to the dentist and you get your general cleanup and you get x-rays our software takes these x-rays in and then diagnosis and treatment plans them for you and so we ensure that the dentist hygienist entire team you know doesn't miss any treatments has a higher accuracy and diagnosis as well as increases what we call the case acceptance rate so it means that you as a patient get a second attack opinion right there from the ai right um and so with that we can increase the case acceptance rate for treatments which on the one side helps you as a patient to get the right treatment earlier and you know down downstream you don't have cost uh costly procedures like crowns or implants or root canals and for the patient it's great for the dentist it's great as well because he can you know do the lucrative treatment now and not maybe in two years right obviously every dso is going to want to upsell me the patient in that dentist chair right and if they use video and video helps them upsell better every dso is going to fall in love with you in fact they love you more if you help them upsell more so aren't you very incentivized to make sure the dentist can upsell something to the client in the seat and if so isn't that not a great experience for the patient um so i i get your point but that actually is not what we are seeing in the market really the the problem is more that um that dentists especially younger dentists which are primarily going to the dso so they have they just got off dentists who will have a lot of debt so they go to these dental chains right because they cannot afford their own practice and they are actually very insecure at this point to really do the right diagnosis so what they are doing is actually over diagnosing and what i mean by this is they are you urinate and maybe have five cavities that say and you need like five fillings um they maybe show you just two and three are skipped that's literally what we have in the statistics right and so those three cavities they come back and hunt you down the line but then they are not any more cost effective fillings and small procedures but then they may become crowns so what we really try to do is not to we don't give a treatment recommendation for this over treatment of more classified as like for this diagnosis the cavity you can do a crown or filling that is in the hands of the dentist but we want to make sure that they don't miss anything where you could do earlier on a less invasive procedure 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 founder path 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 going to get a different valuation a vc is going to pay a different valuation private 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gonna cost five grand and i'm like screw you i'm not that's ridiculous and by the way you just lost all my trust i'm never coming back because you tried to upsell me five grand and i know for a fact i asked my aunt because i had the pictures i asked my own if this was accurate or not she's like you don't need all this so then i lost total trust yeah hey no but nathan that's exactly what we're experiencing a lot as well and so funny enough everyone in my team and our company we actually we have a company internal link where you know we analyze for fun like our x-rays before we get any treatment and we actually have a lot of our engineers with exactly your experience and our ai then out of the seven he might actually he had the same experience than you they i identified three as being legit and the other four as being just way too early stage that you would do anything about it and so for us actually you bring up a really great point because we we just recently announced that we obtained fda clearance for our cavity detection algorithm and so there there was a regulator body a third body right fda which doesn't care about revenue or anything they care about clinical evoxy right and so um what we paid attention to is that actually we are reducing the errors as well so in our clinical study we have shown that we reduce the missed cavities by 43 which is huge right but at the same time we reduce the errors by 15 so that means actually if your dentist would have used so ai you wouldn't have seen these seven cavities where you need all of this so we actually elevate really and that's pretty important maybe that's my clinical background but that's actually pretty important to to our mission mm-hmm no that makes a lot of sense and and so and i think the use case is clear my audience understands the product clearly help me understand pricing so what are one of these dsos pay you per month or per year on average um so that the price ranges really it you know goes from 400 to 800 so to say um per month per practice yeah exactly but but it is like um it's it's just all pricing so uh it's uh is it's per month but usually it's longer term contracts right we usually have minimum of one year contract or something and how many practices are on the platform today well so we don't disclose complete numbers because we're literally on boarding every day so i actually wouldn't even know but like we have we have right now dozens of dsos which...