Lisa
Welcome to the Atlanta Startup Podcast. I’m Lisa Calhoun, General Partner at Atlanta venture capital firm Valor Ventures. Our podcast is designed to introduce you to the founders, the investors, and the innovators that make Atlanta the top emerging venture ecosystem in the country. And I’m really excited today to have, with me Kristin Stafford, the CEO and founder of Vital4 right here in Atlanta. Kristin, how are you today?
Kristin Stafford
I’m great. How are you? Lisa?
Lisa
I am doing so well. I can’t believe this weather we’re having this summer. It is beautiful outside every day. So, that really brings me up. Are you traveling as much as you did this time last year?
Kristin Stafford
Absolutely not.
Lisa
Right?
Kristin Stafford
Everything going on in the world that’s put a halt on a lot of our typical business travel. So, just going with the flow, trying to follow all the rules, and still get it done.
Lisa
So, what’s so exciting about Vital4, of course for Valor, is that we are your brand new seed investor, and thank you so much for bringing us onto your cap table. Could you share with our listeners what is going on at Vital4? Why is everyone so excited about your growth? What are you building?
Kristin Stafford
Vital4 is a unique global platform for compliance. I was cloud-based, we have a SaaS solution, and we have an API solution as well. So, depending on the type of client that we’re working with, they have, you know, choices on how they want to utilize our service. We provide service in several different markets. Really, anyone across the globe is in need of our solutions. We have integrated artificial intelligence and machine learning into our data search solutions to bring the best of breed information to try to help prevent fraud, compliance issues, hiring people who aren’t who they say they are. And with the data that we collect and provide we can do just about anything when it comes to information and people.
Lisa
I feel like the time is really now for that kind of solution. I mean, with so many large employers committed now to work from anywhere policies, and I think everyone is starting to realize that that’s a new reality that’s not going to go back. Having insights into that continuous monitoring becomes really important. Are you seeing an uptake in your business from new requests? How are you seeing the continuous monitoring side of your business react to the pandemic?
Kristin Stafford
Well, I think it’s different per market and like I said, we’re in multiple markets. I think the pre-employment screening industry is a little slower to adopt continuous monitoring one because it impacts their revenue, although it should be their best practice, and other industries and markets that we play in, like financial services, that were adopted quite a while ago. And as part of, you know, some compliance controls. So, it really just depends on which of the markets we’re playing in.
In the healthcare space, it is required through the Affordable Care Act. So, most of the markets that we’re in today do utilize continuous monitoring and it is a big deal for them. And we’re working on pre pre-employment side to try to get them up with the rest of the world.
Lisa
So, one of the things that continually came out in Valor’s diligence around Vital4 was your depth of expertise in this space. I mean, every customer we talked to is like, “Kristin is a leader.”, “Kristin is a visionary.”, “Kristin is a—” How did you come by that reputation? How did you build your skill in monitoring?
Kristin Stafford
Well, this is my second time around being a managing partner. The last company started out as a service company, but I saw a need for a data solution that was compliant with the data privacy laws in the US and all of the providers out there did not have that compliance.
For pre-employment screening, there really wasn’t a solution. So, although you had the LexisNexis, and Thomson Reuters and the RDC, and Dow Jones, there was not a solution that fit their landscape. I’ve always been in technology in the software development lifecycle, but really dug into design and making sure that what I helped our company develop, met the needs of our client base. Taking that and realizing that there’s such a huge need for that same data all over the world for multiple compliance requirements. You know, it just was like a light bulb and I loved it and I respect it and so it’s really easy to give something like that you’re all. That’s what brought me where I am today.
Lisa
So when you were first building the company, what was your sense of version one? Take us back to your earliest days . . .you had a lot of passion around the industry. How did you land your first customer? I mean, we have a lot of founders, people who are thinking about launching their first business and I’d love to hear us go back to that time for you. And how did you get it off the ground? Get it to customers one, two and three?
Kristin Stafford
We were lucky because of the last gig that I had, I had developed some really strong relationships with some Fortune 500 companies that provide global solutions and besides my expertise in that area, and what I was able to accomplish with being the first FCRA compliant solution in that market, developed a lot of trust and my knowledge of compliance developed a lot of great relationships that I was able to lean on as soon as I tried to start this up. So, I was very lucky that I had all of that in my history and could just pick up the phone and say, “Okay, I’m here. This is what I’ve done so far. Please join me.” And luckily, they all did. And they’re all still with me. So I must be doing something right.
Lisa
So, it sounds like customer churn is not one of your biggest problems?
Kristin Stafford
It absolutely isn’t!
Lisa
Great to hear. When new customers come to you, what are you hearing that they love about your platform? What do you do a little better or a little differently, that you feel like helps you stand out?
Kristin Stafford
Well, because we offer solutions in 240 countries and regions, we are required to be experts in data privacy laws in every area which we serve. Taking the responsibility off these organizations where that’s not their specialty to be, you know, a data privacy lawyer, it really helps them be able to trust us and let us handle that for them. We provide a lot of education which I think a lot of our competitors don’t because they’re not taking the time to do so. And so an educated client is a happy client. We don’t cut corners, we make sure that everyone’s comfortable with what we’re providing, and they understand why it’s necessary.
Lisa
Now, last year, I know you spent a lot of investment in building deeper AI into your system and that seems to be an area of the business that you’re really focusing on. How do you use AI in this business? Tell us a little bit more about that.
Kristin Stafford
Well, that was one of the things that I wanted to start this build with this company, because it’s not something I had seen before building a similar platform and through any of the competitive landscape. And so, you know, when we started four years ago, there are still a lot of unknowns but learning about artificial intelligence and how we could bring it into the way we collect our data and the way we serve it up, it really gives us an advantage in all markets that use our solutions.
There [are] a couple [others] out there that now are following suit but from what we understand, we were the first in the space to actually integrate it in and make it part of the, you know, solution that our clients can actually see a difference. It reduces false positives. It casts a much wider net when collecting the data. So, there’s so many benefits to utilizing that technology and so we were fortunate to hit the ground with that instead of trying to add it later, which I think a lot of our competitors are trying to do and it’s a little tougher than they think.
Lisa
So, let’s talk a little bit about Atlanta. What is it like building an enterprise software business in Atlanta? Is it good, bad, indifferent? What are your thoughts about the geography in this city here?
Kristin Stafford
Well, I’m originally from Atlanta. I love Atlanta. I’m never leaving Atlanta just for visits outside, but this is my home.
People told me it was going to be hard to be woman in the technology space and we might not get the same support that a male run technology company would. But I experienced exactly the opposite.
I almost feel like we’ve been put on a pedestal because we’re women and because we have developed and are providing such an awesome solution. I think a lot of people just didn’t expect that. So, I would say that the support that I have [from] the people that are on my advisory team, the opportunities that we’ve been given specifically because we’re women in technology has been amazing. The Metro Atlanta Chamber has been a huge supporter of us since day one, and you know, we’ve won grants, they put us on stage, they take us and show us off. Opportunities like that don’t come for every company.
Being in Atlanta has been a definite advantage for Vital4.
Lisa
So, one of the things I like to do is put CEOs on the spot and ask them to name three people that have really helped their trajectory. And that’s to call this out, because, you know, we have hundreds of listeners to every episode right when it drops. And the fact is, a lot of them are in the Atlanta market. That’s where most of our listeners are. And so, there are a lot of people in the startup ecosystem that others don’t know are real champions. Can you mention a few of your champions?
Kristin Stafford
Sure, they’re not all Atlanta based but I’ll start with an Atlanta based champion of Vital4 and mine and that is Sean O’Brien.
He is our senior advisor and he is someone who came into the business just a couple of years ago and has had such an impact. As far as helping me in areas where I don’t have any experience and he does, connecting me with people who are now part of this organization that have just made a huge difference.
There’s a gentleman named Nick Roberts and he is out of Australia. He is a global compliance and employment screening expert. He’s built and sold several data companies, one of which was sold to Thomson Reuters years ago. So, he has a deep seated experience in this industry and jumped on from the very beginning and really has been our biggest supporter financially and also from helping me get through the tough times. Always with the right advice. It’s great to be accountable to someone like him, which I do consider you know, all my advisors I’m accountable to as I am, everyone in my company and every one of my shareholders. So, those two have been just amazing and made a big difference for me in this company.
Lisa
You have a lot to be proud of having built and scaled this to several million dollars of revenue already. Where would you look back as yourself as a younger CEO and Founder and say, “I wish I’d known that” or “I wish someone had told me that.” What advice would you have for your younger self?
Kristin Stafford
Well, there’s a few things.
One: You can do anything you put your mind to, but I think I kind of already knew that. Or I hope that was true, but I know that for sure now. As long as you don’t mind [getting] knocked down and get right back up and go for it.
Two: Time is really never on your side but always make time for your family and friends. It’s so important and critical, especially as a woman to have work life balance.
Three: Don’t sweat the small stuff, and don’t get too excited about the good stuff. I’ve learned the hard way to stay even-keeled when we have successes or defeats, and that helps a lot when you’re trying to manage a company because you’re gonna have a lot of both.
Lisa
Well, it’s one of the hallmarks of leadership to just stay even-keeled. It’s one of the things that I’ve also had the opportunity to need to learn and grow into over my years. Your team, your people and your customers, they just want to interact with Steady Eddie. So, there might be a hurricane going on, but the face that needs to be there for your team, your people, your customers, is you; present, calm and accountable. I can really relate to that and it’s awesome to hear you say that.
I think there are a lot of leaders that never actually learned that and they’re drama queens. But moving right along. I wanted to ask you about where you’re going from here with Vital4. Where would you like to see maybe the community get behind you even more. What are some things you’re knocking off in the next couple of quarters as you continue to grow and scale this exciting company?
Kristin Stafford
Well, I think what is still a challenge for us is we’re the new kids on the block. And so, some of the larger Atlanta companies that I have done business with myself for years as a consumer, it’s hard to get in the door. We’re starting to establish a great reputation and especially here in Atlanta, but just getting a connection is usually the best way to let someone see what you’ve got. Once we get in somewhere, typically it’s a no brainer, but it’s just getting in that door.
I would love to work with Delta.
I would love to work with Home Depot.
I would love to work with some of the local banks, larger banks, from the south.
We’re in many different markets so our data fills a need for just about every business. So it’s, you know, I really like to see us grow our southeastern relationships. Then, eventually we’re just going to take over the world.
Lisa
Love it! That sounds like a plan to me. And I think we can work together on making sure some of those relationships get activated. And if someone’s listening and you have a contact, by all means, get in touch. Should somebody call you? How should somebody reach out to Vital4 if they have a good connection? Or they happened to work at the top of HR at Delta or Home Depot?
Kristin Stafford
I’m easy to reach. You can reach me through our website at vital4.net or you can reach me via email directly at kstafford@vital4.net or you can just call me on my cell.
Lisa
I love that attitude. It’s like “Get it done!” So, we’re going to end on a note about you personally, I know people are going to be very inspired by your story. How do you recharge yourself? How do you keep your superpower, your energy, moving?
Kristin Stafford
I don’t know how I acquired the skill. It must just come naturally but when I walk out of the office, I am able to leave Vital4 behind and dedicate myself to my personal life and my family . That has been a huge advantage for me. It doesn’t mean that I’m not connected when I need to be. But I do not go home and worry about anything that happened at work. I’ll pick it back up when it’s appropriate and I’m back in my work time. So, I think that has certainly helped my success in my personal and business life.
Lisa
That reminds me of a book, an oldie-but-goodie: Jim Collins, Good to Great. One of the hallmarks of CEOs that he discovered that really saw the great ones are able to do that and are able to build executive teams like you have that you can rely on. So it’s not just you. That is a wonderful lesson to share. Thank you so much for your time today, Kristin.
Kristin Stafford
My pleasure. Thank you, Lisa.
Lisa
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