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Rapidosos: A Story of Pizza Ovens and Stolen Money

July 27, 2021
Rapidosos: A Story of Pizza Ovens and Stolen Money

The Paradox of 911

It's a curious situation that the number 911 is universally recognized, particularly within the United States, yet rarely is it a subject of conscious thought. Most individuals will only need to dial 911 a limited number of times throughout their lives.

Even during those critical moments, encounters are typically with responding officers and paramedics, not with the 911 call taker who initiated the dispatch process.

These vital systems, and the dedicated personnel operating them, often receive minimal attention from governing bodies, the general public, or entities outside the immediate emergency response network.

Michael Martin's Insight

This lack of focus, however, did not go unnoticed by Michael Martin.

Alongside Nick Horelik and Matt Bozik, he developed a strong interest in the sector’s inherent complexities and the noticeable absence of modern innovation.

“The emergence of Uber demonstrated the convenience of on-demand services; a simple button press could summon transportation,” Martin explained. “Why couldn’t a similar ease of access be applied to emergency medical services?” This question ignited his curiosity.

The Search for Information

Martin actively pursued information, but discovered a surprising scarcity of data regarding such a crucial system.

He pointed out, “The Wikipedia entry for George Clooney is significantly more extensive than the one dedicated to 911.”

From Haven to RapidSOS

This realization marked the beginning of a nearly ten-year endeavor with RapidSOS.

Initially, Martin and his team attempted to develop a consumer safety application named Haven.

They subsequently shifted their focus to facilitating connections between numerous technology companies – including industry leaders like Apple and Google, as well as device manufacturers such as SiriusXM – and a diverse range of 911 software providers.

The journey involved navigating the typical challenges of a startup, requiring frequent adjustments to their approach as they sought to engage consumers in proactively considering emergency preparedness.

A Mission-Driven Success

Achieving success wasn't immediate, and it took considerable time for the company to find its footing.

However, the story of RapidSOS is fundamentally one of dedication, community, teamwork, and a core belief that every emergency situation deserves the highest possible chance of a favorable outcome.

RapidSOS strives to improve emergency response through technological advancement.

Indiana: The Crossroads of American Innovation

Martin’s formative years were spent near the small, rural community of Rockport, Indiana, currently home to approximately 2,500 residents. His mother practiced medicine as the local physician, and he and his brother became accustomed to the expansive landscapes and quietude characteristic of agricultural life. He recalls, “We were raised on a 35-acre property, complete with a substantial garden and a modest fruit orchard.” The community even celebrated “Drive-Your-Tractor-To-School Day.”

However, possessing a budding entrepreneurial spirit, Martin wasn’t satisfied with simply operating a tractor for his commute. He describes himself as “a dedicated enthusiast of academic pursuits,” and alongside a friend, he became fascinated with the concept of constructing fuel-efficient vehicles. “We participated in a competition focused on achieving exceptional gas mileage… we successfully surpassed 2,000 miles per gallon with our design.”

The challenges encountered during this vehicle construction process would foreshadow developments at RapidSOS in subsequent years. “It mirrored a situation where resources were limited and finding collaborators proved difficult due to the project’s specialized nature,” he explained. “Even then, I proactively contacted local businesses, requesting donations, as we needed to secure nearly $100,000 in funding.”

During the car’s development, the team identified the need for a custom-fitted windshield. This necessitated heating the glass to extremely high temperatures, but the limited infrastructure of their small town presented a hurdle. “We approached a local pizzeria owner, who graciously allowed us to utilize his oven before opening hours, a decision that proved disastrous due to our inexperience. The glass partially melted, resulting in significant smoke,” he recounted.

Life’s trajectory shifted towards a more traditional path as Martin enrolled at Carleton College in Minnesota for his undergraduate studies. This was followed by professional experiences in investment banking at Piper Jaffray and later in venture investing at Braemar Energy Ventures. By 2013, however, his focus began to realign with entrepreneurial endeavors. His desire to gain practical experience in company building led him to Harvard Business School in the fall of 2013.

Prior to commencing his studies, Martin initiated the groundwork for RapidSOS. He collaborated with Matt Bozik, a fellow associate investor at Braemar, and together they established RapidSOS, LLC, in Indiana in April 2013. Bozik maintained a board position with the company from its inception until recently, dedicating his efforts to financial management and fundraising, including a period as CFO in 2019.

Martin’s interest in improving emergency response systems, as revealed in a podcast interview, stemmed from a personal experience shortly after relocating to New York City following college. “It was around 1:00 AM, and the streets of East Harlem were deserted. While walking home from the subway, I noticed someone following me. I attempted to quicken my pace and cross the street, but the individual mirrored my actions. I felt powerless in that moment,” he stated. This incident highlighted the need for a more efficient method of requesting assistance than manually dialing and verbally communicating one’s location to an operator.

The Genesis of RapidSOS: From Harvard to Emergency Response

Harvard Business School proved to be more than just a place to study business; it functioned as the foundational environment for the development of RapidSOS, both conceptually and in practice. It was during this time that Michael Martin connected with his future co-founder, Nick Horelik, a Ph.D. candidate in nuclear engineering at MIT, and together they began to formulate strategies for improving emergency response systems.

smoking pizza ovens and pilfered dollar bills, or the early story of rapidsosInitially, RapidSOS confronted a classic challenge: the need to stimulate demand. The company aimed to create a governmental data platform capable of delivering enhanced data to Public Safety Answering Points (PSAPs) – commonly known as 911 call centers. Establishing this platform was seen as crucial, paving the way for the development of additional products and the overall sustainability of the business.

The founders initially concentrated their efforts on the government platform, accelerating their progress when RapidSOS was accepted into the Harvard iLab, the university’s incubator and educational hub, during the summer of 2014.

That summer presented a divergence in the founders’ activities. Horelik, supported by a team of interns, dedicated themselves to tackling the engineering complexities within the iLab’s co-working space. A significant achievement was the successful integration of a phone’s GPS location onto the existing screens used by 911 operators, a milestone Martin characterized as “a substantial advancement for us at the time.” Despite system limitations, this functional prototype served as a basis for further service development.

smoking pizza ovens and pilfered dollar bills, or the early story of rapidsosConcurrently, Martin embarked on a cross-country journey to engage with 911 call takers and gather insights from potential users. His goal was to attend the National Emergency Number Association conference in Nashville, while also interviewing a prominent figure in the 911 industry based in Dallas. During his travels, he proactively connected with staff at PSAPs in both large and small cities, often relying on the hospitality of friends for lodging. “Financial resources were limited, both personally, due to the $90,000 annual tuition for graduate school, and within the business itself,” he explained. “I even had to negotiate for a student pass to the [NENA] conference.”

He directly contacted administrative offices of police departments and emergency services, requesting opportunities to discuss his research. “I would introduce myself as a Harvard graduate student studying 911 systems, and remarkably, over 80% of the time, people were receptive and willing to share their time,” he noted. He meticulously documented his findings in a spreadsheet, then relayed them to Horelik each evening to inform the engineering team’s product development efforts.

The feedback received from the diverse range of PSAPs across the country consistently highlighted a willingness to collaborate. “The 911 community demonstrated a genuine openness to new ideas and a willingness to work with even a graduate student with a novel concept,” Martin stated. This outreach ultimately resulted in 44 PSAPs in North Central Texas becoming early beta testers of the company’s government platform.

smoking pizza ovens and pilfered dollar bills, or the early story of rapidsosDespite this initial enthusiasm, RapidSOS recognized that focusing solely on local agencies was not a sustainable strategy. “Our interviews with 911 agencies revealed significant challenges, including staffing shortages, operational difficulties, and a lack of funding – highlighting a neglected aspect of our emergency response infrastructure,” Martin observed. The company made a deliberate decision not to charge governmental entities for its software, a business model that will be examined in greater detail in the subsequent section.

The Evolution of RapidSOS: From Consumer App to Data Platform

After establishing an initial foothold within the 911 ecosystem through its data platform, RapidSOS faced the subsequent challenge of developing and successfully marketing additional products. These products needed to leverage the platform’s capabilities and, crucially, generate revenue.

Early explorations included attempts to market data to financial institutions. However, this avenue proved unsuccessful. As the founder noted, the insurance sector represented a potentially more receptive audience, given their vested interest in rapid emergency response times.

The company experimented with a product called RapidSOS Predict, designed to proactively identify potential emergencies. Despite this effort, the product did not achieve widespread adoption.

Development of Haven and GeoAlert

RapidSOS then focused its efforts on two products designed to integrate directly with the existing 911 data infrastructure. The first, Haven, was a mobile application enabling users to instantly connect with 911 and transmit vital information to call takers with a single button press.

Concurrently, the startup developed GeoAlert, a system intended for universities and public safety organizations. GeoAlert facilitated the dissemination of mass emergency notifications to individuals within a defined geographical area.

The company prioritized Haven, questioning whether consumers would actively utilize the application. The core question became: “Would users embrace the convenience of a dedicated emergency button?”

Initial beta testing of Haven involved first responders, providing a continuous stream of valuable feedback. One tester, a 911 call taker, conducted numerous test calls, triggering a system alert due to the volume of activity.

The development process often involved early morning meetings with 911 professionals. These sessions were characterized by detailed analysis of the data received from the platform, leading to significant improvements.

Fundraising and the Kickstarter Campaign

Despite the promising feedback, RapidSOS still required funding and demonstrable user engagement. The company actively participated in startup competitions, securing approximately $500,000 through wins at the Harvard President’s Challenge, the HBS New Venture Competition, and other events.

In March 2015, RapidSOS launched a Kickstarter campaign, ultimately raising just over $60,000 by June. This result was considered somewhat disappointing, given the team’s expectations.

The team had invested heavily in the Kickstarter video, anticipating a viral response. However, the campaign failed to gain significant traction, and securing donations proved challenging.

In a creative, albeit unconventional, attempt to boost the campaign, the founder personally distributed dollar bills with Kickstarter links attached to business cards at Harvard’s dining halls. Surprisingly, only a small percentage of recipients contributed to the campaign.

This experience led to a growing realization that a consumer-facing application might not be viable.

Launch and Reception of Haven

Despite these concerns, RapidSOS launched a closed beta of Haven in December 2015, followed by a public release in mid-2016. The app was initially offered for free, with plans to introduce a $2.99 monthly subscription fee.

The launch proved underwhelming. Consumers demonstrated a lack of interest in downloading a dedicated app for emergency situations, preferring the simplicity of directly dialing 911.

Fortunately, RapidSOS secured $5 million in Series A funding led by Highland Capital Partners around the time of the public launch. This funding provided a crucial buffer as the company sought to address the lackluster reception.

Additional funding of $6.4 million followed from undisclosed investors and Motorola Solutions.

A Pivotal Shift in Strategy

The limited consumer uptake served as a critical turning point. The company recognized the need to integrate its technology directly into existing devices. This realization led to a new strategy focused on partnerships with major technology companies like Uber, Google, and Apple.

The revised business model centered on providing a free 911 data platform to Public Safety Answering Points (PSAPs) while charging technology companies for access to an API enabling seamless integration with 911 services.

This represented a significant departure from the initial vision. Ultimately, Haven and GeoAlert were discontinued in late 2018.

Despite the initial setbacks, Highland Capital Partners continued to invest in RapidSOS, leading a $16 million funding round in early 2018. This commitment underscored their belief in the company’s potential.

The company’s new direction ultimately proved successful, as will be explored in the subsequent sections.

RapidSOS EC-1 Table of Contents

  • Introduction
  • Part 1: Origin story
  • Part 2: Product and business
  • Part 3: Partnerships
  • Part 4: Next-generation 911

Also check out other EC-1s on Extra Crunch.

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