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Internet of Medical Things: How Connected Devices are Changing Healthcare – ReadWrite



IoMT system architecture

The number of connected medical devices – the ones communicating with other systems via the Internet – is growing steadily. These smart things gather and transmit a mountain of healthcare data. Even such small gadgets as fitness trackers and smartwatches can provide quite a bit of health-related metrics, including heart rate, sleep patterns, calorie consumption, to name a few. The point is, this data is the main building block of the huge system called the Internet of Medical Things. And what IoMT is? You’ll find out in this post. 

What is the Internet of Medical Things?

IoMT or the Internet of Medical Things is a healthcare-focused part of the Internt of Things (IoT), hence another name – healthcare IoT. Defining more precisely, IoMT is a system of interconnected medical devices, software, and healthcare systems and services that exchange real-time data by means of networking technologies.

To help you understand what’s behind the “things” part of the IoMT systems, let’s take a heart rate monitor, for example. Such a device collects patient data and sends it to the hospital cloud software so a doctor can see the real picture of a health condition and make timely and informed decisions.

If we take the 2017 statistics presented by Healthcare IT News, we’ll see that 60% of healthcare organizations worldwide have already implemented IoT solutions into their processes. Another 27% of institutions are expected to adopt the technology in the short term. The major factors that influence the fast adoption of IoMT technologies are as follows.

Rising healthcare costs

Analysts have calculated that the IoMT adoption can result in $300 billion savings annually for the US healthcare industry. With IoT solutions implemented, it is possible to reduce hospital visits, detect diseases at an earlier stage and thus cut spendings on their treatment, and much more

The increased need for remote patient monitoring

There are two key tendencies behind this factor: the rising incidence of chronic illnesses (specifically such diseases as cancer, asthma, and diabetes) and the aging population. As for the latter, The United Nations report states that by 2050 there will be 2.1 billion elderly people on Earth. Seniors are prone to have more health issues, and IoMT devices can be of big help in this case. 

People are becoming more health-conscious

The COVID-19 pandemic has made a lot of people change their attitudes towards health and related precautionary measures. This has increased the demand for various health monitoring devices.

How IoMT systems work

Similarly to IoT, the architecture of the Internet of Medical Things involves the four key components or layers: 

  • the perception or sensor layer consists of a number of medical devices and sensors that gather useful health-related data from surroundings and transmit it to another layer;
  • the network or communication layer transmits the data collected at the perception layer to the middleware layer via different networking technologies (WiFi, Bluetooth, LAN, etc.);
  • the middleware or processing layer acts as a data storage, processing, and management environment; and
  • the application layer includes a variety of software tools to analyze medical data received.

Let’s now go through each building block, focusing on connected devices that power the IoMT engine with data. 

The perception layer: IoMT devices 

The variety of physical medical things that have Internet access and cover diverse healthcare purposes is quite impressive. Some calculations point to the number of 2 million different smart medical devices which generate and collect important healthcare data. All they can be grouped in the following categories.

The tyeps of IoMT devices

Hospital monitors and devices

Health facilities have huge machines like MRI, ECG, and CT scanners that provide valuable data and send it to the cloud. On top of that, various small devices and sensors can be used on-premises to track equipment, monitor patients and staff, and manage supplies inside a hospital. 

Point-of-care diagnostic devices and kiosks

A range of portable diagnostic instruments and self-service kiosks aim at collecting patient clinical information (blood, saliva, urine, skin cells, etc.) outside of laboratory settings. The devices in this category can be used both in clinics and at home.

Clinical-grade wearables 

This category includes all kinds of devices prescribed or recommended by a physician. Their main goal is to track disease conditions – degradations and improvements – and provide doctors with real-time data about a patient’s health status for quick decision-making. Clinical-grade devices must be approved for use or certified by respective regulatory bodies such as the FDA (US Food and Drug Administration.)

Consumer-grade wearables

The group consists of various wearable devices with built-in sensors used to track, collect, and transmit data related to general physical activity. They are also known as fitness wearables and aren’t regulated by health authorities.

Personal emergency response systems (PERS)

These medical alert systems are used by patients (paralyzed, elderly, limited in mobility, etc.) to call for help or to notify caregivers and doctors. Medical devices of this type are commonly equipped with an emergency button. 

Smart pills

Also referred to as digital pills or smart drugs, these small electronic devices are shaped as pharmaceutical capsules and equipped with sensors. When such a pill is swallowed, it can be used to track vitals, carry drugs to a needed area, provide pictures of the gastrointestinal tract for more accurate diagnosis, and much more. 

The communication layer: networking technologies

Once collected, the data is sent to the cloud via one of the following networking technologies: 

  • Local Area Network or LAN — a private computer network that enables the connectivity of two or more computers and devices within a limited geographical area;
  • Bluetooth Low Energy or BLE — a power-conserving wireless technology that allows various devices to communicate and transfer data over a short distance;
  • WiFi — a wireless technology that enables high-speed connectivity of devices to the Internet and operates within a limited area; or
  • Wide Area Network or WAN  — a computer network that provides device connectivity over a large geographic area.

To transmit messages among devices and to the cloud, there are different messaging protocols used. The most common ones are:

  • Message Queue Telemetry Transport or MQTT protocol — a lightweight network protocol that supports publish-subscribe messaging between devices; and
  • Advanced Message Queuing Protocol or AMQP protocol — an open standard application protocol enabling systems to send and receive messages.

Now that you know the path of data from the physical world of devices to the cloud, it’s time to deal with the IoT platforms where data is stored, processed, and managed. 

The processing layer: IoT platforms 

A cloud IoT platform or middleware is the most vital part of any IoMT system. There are several IoT solutions that not only have the powerful processing layer but, more importantly, provide compliance with healthcare regulations — namely, with the Health Insurance Portability and Accountability Act (HIPAA).

Google Cloud IoT has a pack of services to build a fully-fledged HIPAA-compliant IoMT system. The technology giant offers Cloud Healthcare API with a development environment for creating healthcare applications and solutions on Google Cloud.

AWS IoT platform is empowered with a wide array of capabilities to create advanced IoMT systems. These services include, among other things, AWS Cloud Trail and AmazonCloudWatch to follow the regulatory requirements for data protection as well as AW IoT Greengrass to build, deploy, and manage device software on-premises. 

Microsoft Azure IoT doesn’t lag behind its competitors and provides services like Azure IoT Edge to integrate on-premises data, Azure IoT Central to manage devices and process data streams and events, and Azure IoT Connector to ingest data from IoMT devices.

Application layer: medical software

This layer interfaces with end-users — medical experts and patients. There is a wide range of solutions you can build on top of IoMT, like health tracking apps, data analytics dashboards, remote patient monitoring platforms, or telehealth systems.

IoMT use cases 

While still developing and improving, IoMT already has tons of real-life applications. Below we’ll overview some successful examples. 

IoMT devices that monitor glucose levels

According to the World Health Organization, there are nearly 422 million diabetic people globally. Continuous tracking of a blood sugar level is critical for them and even can be a question of life and death. Today, we have glucose monitoring systems that not only make tests day and night but also do it without painful finger piercing.

In such systems, a water-resistant wearable with a sensor is commonly placed under the skin. Every few minutes, it checks interstitial fluid and sends data to a smartwatch or smartphone via WiFi or Bluetooth. 

Real-life example: The Dexcom G6 CGM System for diabetes data monitoring and management

IoMT devices that detect and prevent falls

The statistics presented by the Centers for Disease Control and Prevention (CDC) show that one out of four American seniors falls each year. Not only do older adults tend to fall more often, but they also have a greater chance of getting dangerous injuries – hitting their head or breaking a hip. To prevent this from happening, special IoMT solutions are designed.  

These are typically wearable devices like a smartwatch or a belt that have sensors capable of indicating harsh falls, notifying emergency services and/or caregivers of the event, and even providing on-time protection (if it’s a belt, it can be equipped with airbags.) Such devices are synced with software apps so that data can be seen on a computer or phone. 

Real-life example: Apple Watch with its fall alert system; smart hip protection belt called Tango 

IoMT devices that power smart hospitals 

Smart homes surprise no one these days. The same can’t be said about smart hospitals – this concept is still in its infancy. However, it’s not some kind of science fiction. Some facilities, for example, equip their medical appliances with sensors to track the exact location of each piece of equipment

In this way, when hospital staff needs, say, a defibrillator, they will be able to quickly find and deliver it to an emergency room. The trackers can be also attached to hospital beds to check their location, condition, and need for maintenance. Another way such sensors can be useful is monitoring hospital supplies and refilling them on time. 

Real-life example: Caithness General Hospital operated by NHS Highland

IoMT devices that advance endoscopy examinations

Capsule endoscopy lets clinicians examine the entire gastrointestinal tract, deliver medication to a specific location, take biopsies, and perform other procedures. The principle is simple: A patient swallows a small pill-sized digital device with a tiny video camera in it. The camera takes pictures as it passes through the human GI tract and transmits data to a recording device. Then, the data can be delivered to EHR systems.

Real-life example: CapsoCam Plus system

Major IoMT technology implementation challenges 

Along with promises, IoMT brings a number of challenges. Here are the major issues that must be addressed to realize the full potential of IoT in healthcare.

Healthcare data security threats

HIPAA Journal reports that in 2020, the rates of healthcare data breaches increased 25% compared to 2019. Data security threats are still the biggest challenge for hospitals, clinics, and other healthcare facilities that want to employ IoMT systems. IoMT devices are designed with different levels of security, so Internet connectivity makes them vulnerable to cyberattacks.

The lack of interoperability between individual systems

Interoperability is the ability of healthcare systems to exchange and interpret data cohesively. Doctors, administrators, and patients may use different types of medical devices and software solutions that don’t “understand” each other. The lack of interoperability between them leads to data silos and hinders data access.

Regulatory compliance

IoMT solutions must adhere to laws that take care of data privacy and patient safety. Since the regulatory scene tends to change every now and again, compliance may become a significant obstacle in the way of building and upgrading medical devices and accompanying software.

Despite these and other challenges, the global IoMT market keeps growing since by far the benefits it brings outweigh the troubles its adoption causes.

Image Credit: anna shvets; pexels; thank you!

Boryslava Omelchenko

Boryslava Omelchenko

Boryslava Omelchenko is a tech journalist at AltexSoft. She is enthusiastic about covering trends in information technology and IoT, particularly in the healthcare industry.


20 Team Building Activities Your Team Will Actually Love – ReadWrite



team building activities

The human race has evolved over millions of years by sticking together, working in groups and teams. Living in groups has helped humankind survive on this planet and thrive better than any other species. Considerable credit goes to this particular nature of humans, i.e., living in teams. Therefore, team-building activities are a must for relieving the stress of employees.

Most jobs today — especially in tech, involve interacting with others, and often, these team members are not even in the same line of profession. So there has always been the need for dedicated, effective teamwork in any field — whether that means jobs in the business sector, science, or finance.

Steve Jobs revolutionized the entire pattern of living with his innovative and creative mind — but without his team of hard-working professionals and their abilities, his innovations would not have reached the hands of so many people worldwide.

All of the new world facts swirling around us makes it important to have effective ways to develop teams to obtain our best results. Here are 20 Team Building activities that can assure the development of professional bonds and coordination between team members:


20 Team Building Activities for Your Team

  • Blind Drawing


This activity aims to develop good quality communication and understanding between team members and understand how they think.


First, divide everyone into pairs. Then with each pair/team, do the following:

Give a pen and paper to one of them and give a picture to the other. Now the one with the picture has to explain to the other what it is without actually telling what it is. With this explanation, the other person has to draw the picture within a given time limit.

team building activities


This game helps to know your team members on a personal level.


This is a virtual game and is great to play during times like the unfortunate pandemic — or anytime you have a large portion of the team working from home (like work-from-home-Friday). Each member has to make a short video of their homes and their favorite things about it and show it to everyone.

team building activities


This fun activity works great to help team members bond with each other and design effective strategies for problem-solving.


Firstly gather some eggs and make several teams of 3-5 people. Give each team some office supplies like tape, pencils, straws, plastic utensils, etc. The teams will have 20-30 mins to create a platform that’ll prevent their eggs from breaking when dropped from the 2nd floor.

team building activities


The activity is highly based on trust, communication, and effective listening, which are integral for any team.


Find an open space and place obstacles on the floor like cones, bags, drink cups, water bottles, etc. Then, divide everyone into pairs and put a blindfold on one team member. The other team member must help the blindfolded member cross the obstacle course (without touching anything) by voice instructions.

team building activities


This activity promotes self and mutual awareness. It also helps team members understand each other on a personal level.


Ask everyone to take coins out of their purses and wallets. The entire group is supposed to create a logo using these coins and other materials like notebooks, pens, etc. The logo should, in some way, represent their team/organization. At the end of 15 mins, ask everyone how that logo represents their department/organization or team.


The classification game is a great activity for an icebreaker session for team building or a company party.


Create groups of 3-5. In front of their teams, each person in the group says three sentences about themselves with a like, dislike, and one dream. At the end of a quick discussion, each team has to develop a category to describe their entire team as one single group like sporty, night-owls, rain-lovers, etc..

team building activities


This activity aims to state the importance of minor decisions that affect the entire team.


The leader has to choose a picture of some cartoon character and cut it into several small pieces. Then, each person gets one of the pieces, and they have to draw the same piece five times bigger. In the end, all the larger drawings are joined to see who dis-coordinated with the team. This is fun to do with paint — (as you see above) with acrylic on poster board. You can use cheap brushes from a local craft store.

team building activities


This activity aims to create good communication and team building.


Make everyone stand in a circle facing each other. Then ask everyone to grab the hand of a random person on their right and left sides. After everyone is holding hands, ask them to untangle and form a circle without leaving any hand until they are in a tight knot — have a rule that they have to have someone step through (over hands) twice. Then have them untangle. (Yes, it is difficult to step backward over hands to untangle.)

team building activities


Scavenger hunts test team-thinking and decision-making.


Divide everyone into groups of 3-4. Leave clues at multiple points that lead to the final Prize. The team that reaches there first wins.

team building activities


This game improves meeting productivity and motivates everyone to work instead of trying to leave the meeting.


Before starting a meeting, make everyone stand and share what they aim to contribute to the meeting. The team will ultimately decide who actually contributed to the meeting, the point they shared earlier. The winner gets a prize.

team building activities


Group juggle is a great icebreaker session for new teams.


Make everyone stand in a circle facing each other and throw a ball at someone. The one who catches it has to say their name and throw it to someone else. The one who catches it has to do the same. After some time, throw another ball into the circle and continue the activity with more balls.

team building activities


Improves meeting productivity and attentiveness.


During routine meetings, say random things in the middle of the discussion topics and ask everyone about them at the end of the meeting to know who was listening. It can also be played as a team 1 vs. team 2 activity. You can also whisper an important point of a meeting in a person’s ear to the left and a different point to a person on the right. Then have them pass around the information around the circle. Finally, have the last two people who get the information tell what the information is.


This team-building exercise inspires creativity and individual innovation.


Divide everyone into groups and then share an object name with one member of each team in secrecy. They then have to explain what the object is, without saying anything but just with actions.


It is a great way to break the ice for new hires.


Write several pairs on pieces of paper, like Mario on one and Luigi on others. Ernie and Bert. Paste these papers on the back of everyone and make them find their partners. 


The objective helps people work in groups and acquire problem-solving, creativity, and robust communication skills.


Take a 2-meter long table cloth and make 4-5 people stand on it. The aim is to flip the cloth upside down, but the condition is that they can only use their feet to turn the cloth. Another way to do this is to have the team stand around the cloth and turn it over, never touching the ground.


This activity is based on leadership skills and problem-solving. In addition, it aims to improve the overall teamwork and coordination of team members.


Make some teams of any but equal sizes and give each team a jigsaw puzzle of equal difficulty. The twist is that some of the pieces will be mixed in different teams. The missing pieces can hence be negotiated among the teams, but whatever happens, will happen as one decision of the entire team.


Truth and dare aim to develop honesty and interaction between team members.


As simple as it is, truth and dare can be a very effective game to help your team know each other better and create stronger bonds based on honesty and interaction.


This game improves problem-solving, knowledge about your office culture and is just also very fun to play.


Create a list of trivia questions regarding your workplace and see which team gets the most correct answers. You can type a document of the questions leaving an area blank for the answers, or do a live quiz.


Apparently, singing is a great building exercise and allows everyone to bond with each other.


Your team can all go out to a karaoke bar or sing karaoke in the office with the help of karaoke games like SingStar. Our team has had great fun dividing into teams and picking songs at a karaoke bar, then trying to outdo each other and vote who picked the best song, had the best singers, did the best harmony, etc.


It aims to develop coordination


Make everyone stand in a circle with their heads down and eyes closed. Then they have to start counting to 20, but only one person can speak a single number at a time. If more than 1 person is speaking at the same time, they start at one again.


There are numerous ways to build the team spirit of your company. We also play ping-pong, bocce ball, spike ball, various versions of volleyball (even without a net), and baseball (softball) when we can get to the field. By performing team-building activities, one can ensure a stronger bond together. The spirit of becoming the best team and achieving a collective goal helps boost confidence and further build trusting bonds. 

If you have employees who have a great connection and trust; you are already halfway through the success door. 

In the end, what matters is how happy your employee are. If they have a good time working at your organization, you will find a great coworking space. Let them mingle and choose your business as the best learning platform to which they have come up.

At the same time, engage them with skills and development programs to improve their skills, or they can take them as their hobbies like photography, public speaking, or some basic technical skills like dedicated WordPress hosting based web development which is quick and easy to learn.

What We Have Found

We feel that if you are using team-building activities — your team is much more likely to ask questions of each other when they don’t know a piece of technology — and they are happier to help each other with project issues.

The teams are more likely to work together to solve personal (work) problems rather than “tell” the boss/leadership that someone isn’t doing their job. They remind each other and are kinder and less harsh or judgemental to each other.

It is easier to engage your employees to do extra projects. The employees are more likely to keep themselves motivated to work towards your goal — This allows them to carry on with their side hobbies and learning. We have also found that our team building work has brought good results to our company in the end.

Nobody wants to keep changing jobs or avoid work until they are enjoying work with disciplined freedom. But, unfortunately, it seems that nowadays, everyone thinks it’s the responsibility of the HR Team to create better workplaces and cultures — but as a manager and leadership — you don’t always need HR to take care of everything — you can do it yourself. 

I hope you build stronger teams with these team-building activities.

Incidentally: these games are great with kids, families, and family reunions, and large parties.

Puneet Sharma

A serial entrepreneur and passionate SaaS Marketer working in multi online business niches like hosting, eCommerce, saas, real estate.

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How to Build Ideal Partner Personas for Channel Marketing – ReadWrite



How to Build Ideal Partner Personas for Channel Marketing - ReadWrite

The world of marketing has become increasingly more complex in recent years. With omnichannel approaches, platforms, and various approaches to content. it can sometimes seem that a marketer’s work is never done. But, thankfully, new ways of dealing with our marketing issues have also arisen, including process improvement strategies, and new ideas.

How to Build Ideal Partner Personas for Channel Marketing

You will often hear the term channel marketing used, and it will often be used in conjunction with the term partner personas, but what do these terms mean? How can they benefit you and just how do you go about building this so-called ideal partner persona?

What is Channel Marketing?

At its simplest, channel marketing is about being involved in the total lifecycle of a product; from the point of initial production to its final usage by the consumer. That lifecycle can consist of several levels of people, organizations, and activities. Not to forget who is involved in the process as a whole.

Partners in your channel marketing help you promote the benefits of the product, either to end consumers or to other links in the chain. This can also include distributors, affiliate partners, agents, resellers, and other third parties.

Channel marketing is based on the idea that the relationship is both symbiotic and mutually beneficial. Unlike your normal way of promoting and advertising your products, your channel partners may be independent businesses who are promoting the same product as you, which means that your product can reach a different audience than if you were operating alone.

Third parties benefit as well as your business, as they may receive a percentage of overall sales or, in the case of resellers, they can access discounts if they buy your product in bulk. Channel marketing can also be of advantage if you do not have the (human or financial) resources to facilitate the required levels of marketing alone.

The Partner Persona

Image Credit: pixabay; thank you!

The first thing to emphasize is that a partner persona is not a real person. Instead, it is a representation of who your ideal channel marketing partner may be. It is most often based on market research and data analysis of who your target demographic consumers are. There are several benefits in defining that partner persona:

  • Identify – helping you find partners who are relevant to you (your business type, your market, and your target customers).
  • Understand – aiding you in understanding what drives your partners, what their perspectives are, and what motivates them.
  • Communication A good definition of partner personas means it can be easier to communicate with them, especially if you share a common UCaaS platform.
  • Engagement – It is easier to engage with any partners if you have a clear understanding of who they are and what they want.
  • Customization – clearly define your partner personas – it makes it easier for you to customize any partner programs to be mutually beneficial.

How to Build Ideal Partner Personas

Image Credit: pixabay; thank you!

Creating your perfect partner persona is not just a case of jotting down a ‘wish list’. If you approach this exercise without due care, and careful research, then you could do your business more harm than good. There are a number of factors that contribute to the partner persona:

  • Demographics – ideally, they should already be working with the demographic groups you want to target (or be positioned to do so). For example, if you want to offer content writing services, it would make sense to partner with an organization offering SEO optimization services and keyword research.
  • Size and Reach – the whole idea of bringing partners on board is to extend your reach and to increase sales. There is little point in partnering with a sole unit that has a limited customer base.
  • Credibility and Expertise – you want new partners to have some experience in your particular sector. Experience and knowledge of the product – or at least the product type – means they have credibility with potential customers.
  • Cohesiveness – when an organization offers products or services that complement your own, then they can make an ideal partner. For example, if you are offering a complex SaaS package, then a business that can offer localization testing could be a good partner to have.
  • Values – sometimes you have to look beyond basic financial factors and consider whether a potential partner meets your company’s values. For example, if you are producing reusable silicone cups and mugs, you will probably not want to partner with a company that produces a high volume of single-use plastic items.
  • Benefits – there should be some equality as far as benefits are concerned. That is not to say that any profits are equally split but more that you both benefit from forming any sort of partnership. That benefit does not have to be financial; it could mean increases (for you both) in brand awareness, visibility, reach, and reputation. For partners, it could also include a widening of their knowledge base if you offer product training.
  • Customer service -how does your potential partner provide customer support? Do they have a dedicated call center or use a high degree of automation such as IVR?
  • Goals – Ideally, a good partner should share some of your goals and motivations. If you both want to work towards the same – or similar – goals, then it is more likely that a successful partnership can be established.

How Do You Establish a Successful Channel Partner Program?

Image Credit: pixabay; thank you!

So, you’ve spent some time creating what you see as your ideal partner persona. And further research has identified potential partners that you feel fit that persona. How do you begin to create the channel partner program you have imagined. Some factors include the following:

  • Profile – build a profile of your potential partner. Where do they do marketing/selling? What challenges will they face in marketing your product? What help – if any – do they need in order to be a successful partner?
  • Program – put together what you see as a good reseller program. List the benefits they will receive and what support or assistance you can offer.
  • Introduction – finding the right way to introduce yourself can be crucial. Will you send an introductory letter with detailed information? Or will you arrange for a meeting (in person or virtual) to discuss this in more detail?
  • Timeframe – suggest a timeframe for the partnership to be authorized and established. This should include aspects such as product training (if needed) and an agreed start date for them offering your products to customers. This could also include a checklist for various goals or progress points.
  • Application and/or Contract – if needed, ask the reseller to make a formal application listing their qualifications to sell on your behalf and experience. If details are already agreed upon through meetings or calls, then draw up a contract that defines the relationship between you and what you both expect from the agreement.
  • Policies – this can be included in any contract and will cover all policies and procedures to do with your partnership. For them, that could include how to deal with leads and for you, it could also cover other factors such as training programs.

The Takeaway

Successfully marketing (and selling) your product has many different approaches. For example, you may want to combine content marketing for SaaS with a solid channel marketing strategy that includes partners who complement your product well. How you identify partners and build a program will also depend on the industry you operate in.

Software developers seeking partners may often ask what is QA and its place in your current business model. A business offering organic fruit and veg is going to look for a partner who values sustainability. Customizing your partner personas to suit you is crucial when approaching the issue.

Top Image Credit: kaboom; pexels; thank you!

Grace Lau

Director of Growth Content

Grace Lau is the Director of Growth Content at Dialpad, an AI-powered cloud communication platform for better and easier team collaboration. She has over 10 years of experience in content writing and strategy. Currently, she is responsible for leading branded and editorial content strategies, partnering with SEO and Ops teams to build and nurture content. Here is her LinkedIn.

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Startups Should Make Their First Dollar Before They Raise Their First Dollar – ReadWrite



Brad Anderson

The world of startups is a bit like a gold rush right now: there’s lots of money to be made, almost no rules regarding who will make or lose it, and only a few will actually see a sustained profit at the end of the day. Global venture funding hit a record high in the first half of 2021, with $288 billion being poured into early-stage businesses. Numbers that high are probably leaving entrepreneurs everywhere wondering what they need to do to get a bigger slice of that pie.

Small business leaders salivating at the idea of getting a big cash injection from an angel investor need to slow things down a bit and focus on their own company first. The answer to the age-old question of whether your business should be trying to make money or raise money is almost universally the latter. Generating solid revenue streams early on will make many of the fundraising problems much easier to handle later on.

4 Reasons to Focus on Revenue Before Fundraising

1. More Independence

It doesn’t matter how good your idea is, how scalable it can be, or how interested investors are: a startup already making money is in a completely different league from one with no revenue. That’s not to say that there’s anything wrong with startups that can’t initially generate cash.

Some ideas require larger amounts of capital than others to become viable — but the early establishment of revenue streams completely changes the relationship between your business and its investors.

If you’re already making money, you’ve already proven that you have an established model to maintain a successful business.

Any investors who hop on board later will need to acknowledge that they’re joining an already-successful enterprise, not trying to build one from the ground up. On the other hand, if your company has yet to make any money at all, your investors will want a bigger say in how you eventually go about doing so.

Every dollar you make before allowing investors to come in is a piece of evidence showing that your business works and doesn’t need an investor to come to save it. This can help protect you against any overbearing “angels” later on down the road.

2. More Leverage

Along those same lines, revenue also makes investor negotiations much easier to navigate. If you’re running a business without products currently deployed, it can be difficult to negotiate with investors in good faith. How can either of you confidently give a valuation of a business that doesn’t make money? How will you be able to push back against offers that seem too low, too controlling, or not cash-heavy enough?

The truth is that revenue is your ace in the hole when it comes to negotiation.

Not only does it increase your standing among investors, but it also ensures that your business doesn’t become fixated on ideas that only become profitable at a massive scale, ceding even more control to your investors.

According to Devon Fanfair, co-founder of startup studio Devland, “building companies that demonstrate enterprise value is the best path for new builders because they generate revenue with very little investment.

It allows operators to focus on solving quantifiable problems and building momentum that is fed with every new iteration. Unfortunately, some startup builders get lost solving consumer pains that are harder to validate without scale. This can prove to be adversarial to growing confidence and routine behaviors that breed traction.”

If it’s solid and consistent, even modest revenue can make a world of difference during seed rounds.

3. More Choice

The logic here is pretty simple: there is a relatively small subset of investors interested in investing in startups founded on great ideas that have yet to deploy them at a profit, but nearly all investors working today are willing to invest in companies that have an already-proven ability to make money out in the wild. So the more spoiled for choice you are when it comes to interested investors, the better terms you’ll be able to secure when negotiations eventually rear their ugly head.

If you don’t believe me, listen to Geoff Ralston, President of legendary startup incubator Y Combinator: “Investors need persuading. Usually, a product they can see, use, or touch will not be enough. They will want to know that there is a product-market fit and that the product is experiencing actual growth.

Therefore, founders should raise money when they have figured out what the market opportunity is and who the customer is, and when they have delivered a product that matches their needs and is being adopted at an interestingly rapid rate.”

A revenue stream of practically any size at all proves all of the things listed above — and more.

4. Greater Chance of Long-Term Success

It’s no secret that the vast majority of startups fail within the first 5 years after their founding, whether they received funding or not. While this issue is often thought of as germane only to the world of startups, businesses of all kinds are in constant peril of failure if they can’t find a way to make money.

Investor funding can only prop up an unprofitable business for so long, but it can disguise some of the internal problems young startups often suffer from. Eschewing early investment in favor of revenue generation ensures that your company never has the chance to mask unsustainable losses with investor money.

Secure revenue streams also mean that your business always has something to fall back on.

If plans for expansion and new products go completely awry, you can always be sure that there is at least one pathway for your business to remain viable into the future.

The world is so saturated with seed money right now that it’s easy to lose sight of what running a business is all about. Focus too much on investors, and they’ll never return the favor. Instead — prove that you have a business plan capable of surviving and thriving, and you’ll have no difficulty attracting the interest you want.

Image Credit: dziana hasanbekava; pexels; thank you!

Brad Anderson

Editor In Chief at ReadWrite

Brad is the editor overseeing contributed content at He previously worked as an editor at PayPal and Crunchbase. You can reach him at brad at

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