U2ML founder finds TechLaunch ‘murder board’ educational

Jason Christensen was not prepared to pitch his IT company to potential investors.

Christensen is a hardware guy – not someone skilled in the art of the sales pitch. Until recently, he was a software architect responsible for building technology infrastructure for Albertsons.

In December of last year, Christensen struck out on his own. His company, U2ML, will offer an all-in-one hardware/software solution to allow enterprise companies to achieve full compliance with the auditing standards set by the Sarbanes-Oxley Act. The product – called a SOX Box – promises to be revolutionary because it will allow a company to report on its financial data without touching the financial database itself.

Sarbanes-Oxley compliance is a huge IT undertaking, Christensen said. SOX compliance is a $6 billion market; even small companies spend 1.27 percent of their revenue on SOX.

“Companies don’t want to update their financial system because of risk to data, but it’s required,” he said. “Once a data ecosystem is set up you don’t want to touch it.”

The SOX Box U2ML is developing would eliminate that risk. The SOX Box would sit next to a database server and report on it – how the financial database is changed, when it is changed and even which user inside the company made the change.
“Our product doesn’t require a technology rewrite – just plug it in and turn it on,” Christensen said.
U2ML was in the early stages of developing its company and its product offering when the owners heard about TechLaunch – the annual event where Idaho entrepreneurs compete for an opportunity to practice their pitch in front of a “murder board” – composed of six representatives from the financing sector – before making a presentation to actual investors.
Christensen said his company wasn’t planning on being public for another six months, but the opportunity to get feedback from real investors was too valuable to pass up.
“TechLaunch was the first opportunity our company had to see the investor’s perspective from the inside,” he said.
He accelerated everything to get an application in on time. Christensen and his co-founders, CEO Oliver Meyer and CTO Stanislav Fritz, worked 20-hour days for five weeks to prepare an executive summary of their company.
When Christensen started U2ML, he came on as the company’s chief software architect.
“The thing we planned, that was confirmed [at TechLaunch] is that we haven’t stuffed people into a role,” he said. “A good team is better than a good idea.”
By the time U2ML had made it to the final round, July 11-12, Christensen found he was suddenly on his own. Meyer and Fritz were both taking long-overdue vacations, and Meyer was also preparing to present to another set of investors later in the month.
Christensen said it was his first time in front of a “murder board,” but he found the experience to be very educational.
“It’s good for me since the other two founders have had experience doing this before,” he said.
Christensen said he learned a lot about the financial side – for example, that it’s best to use seed money to incur a small amount of debt and build a customer base; then you can point to a long list of customers when you take on the next round of funding.
Venture capitalists like to fund more on an established business – marketing and brand, Christensen said.
Christensen, who said he often has trouble conveying the technical details of his work, said he learned a lot about how to make an effective presentation.
“When you’re the guy making the hardware work, it’s hard to bring it up to a level where you’re not talking down to people,” he said. “It’s ongoing. When I’m writing marketing material, I can do revisions over time. It’s a different story in front of people.”
The first day of TechLaunch is devoted to workshops. Participating companies learn about financing options, legal hurdles and how to fine-tune their pitch to potential investors.
On the second day, Christensen and six other Idaho companies each made their pitch to the “murder board.”
There was more to TechLaunch than just the knowledge and experience entrepreneurs earned by presenting their company. Judges also awarded a $10,000 prize – provided by the Idaho National Lab – to one of the seven companies.
Christensen, who presented fourth, said watching the other companies in front of the “murder board” was tremendously valuable.
Ivus Industries, which developed a rapid charge system for flashlights, was the $10,000 winner.
Meth Lab Cleanup, a drug lab testing and decontamination company, won the $500 Perkins Coie “People’s Choice” award.

About TechLaunch:

TechLaunch is an annual event for entrepreneurs to learn about financing, legal obstacles and techniques for growing a business.
The first day is packed with workshops offering tips and techniques for managing a business. On the second day, participants present their business plan to judges from the investment community, who offer tips on how to make a successful pitch. Companies aren’t making a real pitch, so they’re allowed to discuss capital, ask questions and learn from their mistakes before moving on to the real thing. 
Companies from across Idaho must compete to participate in the final, two-day event. This year, seven Idaho startups participated.
One TechLaunch company, Ivus Industries, was also selected for a $10,000 prize provided by the Idaho National Lab.