Matt Randall & Maria Goy | Spot

March 30, 2021 What I Found

What Is Spot?

Spot is a tech startup offering subscription, on-demand injury insurance that protects everyone from athletes and adventurers to families at home. With collective experience working for both insurance giants and groundbreaking tech startups, our team provides affordable, month-to-month accidental injury coverage, which can be used with or without traditional health insurance. We’re on a mission to make insurance accessible and affordable.

Health insurance deductibles are astronomically high and healthcare costs are getting more expensive, so Spot’s plan pays the medical bills whenever someone is suddenly injured, saving them from crippling medical debt.

What Is Your Background? What Led You To Starting Your Own Company, And How Did You Choose This Space?

Matt: I’ve been in the startup, venture-backed space for the last 15 years, starting my very first business at the age of 16. I’ve had my hand in a lot of different industries, from e-commerce platforms to community-focused groups all the way to my current venture in injury insurance. Being an avid cyclist and skier, I know firsthand the importance of being covered and having that peace of mind when taking off on your latest adventure. So when Maria, who is close friends with my wife, told me of her idea for on-demand insurance and the growing concerns with the insurance industry over dinner one night, Spot was born.

Maria: I started my career as a consultant, living across Europe and Asia, experiencing insurance from a number of different perspectives and running teams across a diverse set of industries. During my tenure at New York Life Insurance, I saw the huge gaps within the insurance industry when it came to underserved communities. Seeing this disparity pushed me to create a business model around more affordable plans that would cover the actual cost of medical bills. I approached Matt early on, knowing his passion for starting companies from the ground up. From there, Spot was born.

Who Are Your Co-Founders Or People Who You Work Very Closely With? How Do Their Skills Supplement Yours?

Maria: Matt and I are co-founders and were connected through his wife, who is one of my best friends. We like to joke that we have two things in common, 1) Amanda and 2) we were both raised by fathers that were special forces so we don’t take no for an answer. Over the years, Matt has also become one of my best friends. Our personalities are incredibly different as are our skill sets...in every way possible, we are yin and yang to the company. I run everything on the backend from tech to compliance and finance and Matt runs everything from brand to marketing; in this way we’re able to leverage our skill sets best to run the business together but lean on one another for outside perspective when we feel we are too close to something. We know that Spot is an incredible team and that Matt and I will always be family - we think it’s important to nurture our relationship and grow together, like any relationship. Every Tuesday we take a social distancing walk where we “shoot the shit”, talk about what’s on our mind, and address anything weighing on us; it’s been a great way to stay connected and determine the best way to support one another. We also try to do a trip together at least once a year with our families where we hold one another accountable to staying present...and our spouses don’t allow us to talk about the business at meal times :-). Like any meaningful relationship, there are times that are hard or frustrating but we know we can depend on each other and that we will always be there for one another. Also, about a year into our journey, we brought on Nabil Rahman who is our current Head of Strategy and Sales. Nabil is like a third co-founder to us and levels us both out with his breadth of experience; he’s a close friend to us both and a mentor to a number of junior team members. He’s spent much of his career working toward changing the industry through technology and plays a key role in helping us broaden our capabilities across Partnerships and Technology.

How Did You Choose The Name “Spot”?

Spot actually has two meanings - it references how people can sign up for injury insurance “on the spot” and also alludes to our coverage spotting you, like how a spotter has their partner’s back no matter what.

What Have Been Both Your Favorite And Least-liked Parts Of Your Entrepreneurial Journey? What Have Been Your Most Challenging And Most Exciting Moments For You And The Company?

Matt: Taking an idea between friends and creating a company out of it that betters people's lives and makes money is one of the most rewarding journeys I think anyone can go on. There have been so many exciting parts of Spot so far and one of the highlights has been the heartfelt testimonials from our customers and the impact we are making on their lives. One challenge of being an entrepreneur is raising capital and if all founders don’t say this, they are lying to you!

Maria: Building a team from the ground up has been an incredible journey. You have the seed of an idea and to watch our team and technology form around it and bring it to life is something so wondrous, it’s hard to explain. I love this time where the team is large enough that we can deliver and small enough that we can still spend time together, getting to know one another on a personal level. The challenging days are when we don’t feel like we are moving fast enough, when there just isn’t enough time to get everything done, and when making time for the important people in your life is more challenging than it should be.

What Was The Fundraising Process Like For You? Tell Us About Your Investors And What You Use The Money You’ve Raised For.

Fundraising these days is a constant need, as startups have an insane amount of pressure to grow at unprecedented speeds. Luckily for Spot, we are seeing amazing adoption to such a new product in the market and the fundraising process has been both fun and frustrating at times. We have incredibly different personalities and telling our story and leaning on our relationship is something that we feel sets us apart during the fundraising process. So far, we have raised $8 million in seed funding from Mutual of Omaha, Silverton Partners, MS&AD Ventures and others. With this, our team is breaking apart comprehensive healthcare to make medical bills and expenses more affordable -- we’re focused on building out our product and signing more partners to do this.

How Has COVID-19 Impacted Spot’s Growth and Operation Over The Last Year? Also, Tell Us About How You Partner With Businesses And Organizations?

Maria: We started Spot before the pandemic hit and like many companies out there, took some time to understand how it would affect us and our customers. We saw interesting data as a result. Prior to the pandemic, 72% of our customers who filed claims had another form of insurance, which dropped to 56% after the pandemic began. Our hypothesis is that this was likely due to the record unemployment numbers and nearly 15 million Americans sadly losing their health insurance that was tied to their jobs. Right at the beginning of the pandemic in March 2020, we started seeing claims for at-home injuries more and more and since then, they have increased steadily, now comprising 11% of total claims. The pandemic has helped us to rethink certain aspects of the business as we continue to learn from our customers what is important to them -- for example, we recently launched family plans.

Matt: We have dozens of partners so far and we are actively signing more. Some of our current partners include USA Cycling, National Ski Patrol, Powder Mountain, athleteReg, National Collegiate Rugby, American Mountain Guides Association, RaceReady, Wilderness Collective, Red Bull Last Stand and USA BMX. For each partner, we customize the policy to fit the type of business they’re in, so the deal structure varies. Our partners benefit from the convenience and affordable plans, and the ability to offer their customers peace of mind - whether it be on the slopes or during a race. Some of our partners offer Spot policies that only their customers / members can access, which creates added value.

Can You Tell Us About Some Of Your Numbers? How Has Growth Been Over The Past Couple Of Years?

While we can’t share growth numbers, we are growing incredibly fast - we have tens of thousands of customers and are actively signing new partners. We’re also continuing to gain brand ambassadors, including top pro athletes.

Anything Exciting That Will Be Launching Soon?

We’re focusing on educating Americans about injury insurance and raising awareness of how Spot offers the best coverage and customer experience on the market. We’re constantly looking for ways to streamline our efforts and improve our customer experience, to ensure that we’re providing our members with products and tools that are meaningful to their lives. We’ll be continuing to announce new partnerships and new markets as we grow. We’re looking into more ways to leverage our data and tech to help our partners become smarter about how they run risk management in their own organizations and create safer environments for their customers.

What Are Your Daily Routines? Walk Us Through Your Typical Workday Schedule.

Matt: With an 18-month-old daughter, my days traditionally start early. I typically roll out of bed around 6:00 am, after dreaming about Spot all night long. I get some work done prior to my daughter waking up around 7:00 am. I love our mornings together, as I get to spend the next two hours with her, making coffee (for me), breakfast (for her), going on walks or anything she wants to do, as I am wrapped around her finger pretty tightly. Meetings start around 9:00 am and since I’m working from home these days, my wife also thinks I am here to do “honey do list” tasks throughout the day, so I am usually reminding her that I will get to those over the weekend. Lunch is usually made at home or it’s a quick run to Sweetgreen, as we are big fans. The afternoon consists of me trying to squeeze in a 30-minute Freeletics workout or a quick bike ride, followed by more meetings. If time permits, I love when I can get out on a walk with the family (a lot of these walks are while I’m on a conference call using headphones, which my wife just rolls her eyes at). We traditionally eat early with our daughter and then I put her to sleep every night after reading books to her, as it’s one of my favorite things to do. Nights are filled with spending as much time as possible with my wife and catching up on whatever new content Netflix, HBO, Hulu or one of the other 50 streaming services has come out with. The day is capped with me reading three pages of a book and passing out… a day in the life of a domesticated dad!

Maria: In the mornings, my husband and I like to walk our dogs to our local coffee shop, while talking about and setting intentions for the day. As soon as we get back, we have a quick bite to eat and then it’s off to the races with calls, which are generally stand-ups with the team, 1:1s, governance calls, etc. In the afternoon, I try to do a little industry catch-up by reading up on trends and insights. I follow that up with a quick ride on the Peloton or a workout to break up the day and keep the blood flowing for the remainder of my afternoon meetings. I’ll also do a quick meditation to keep my mind sane -- it’s not always possible with my meeting schedule but I strive for it and try to give myself a little grace when I can’t get there. Once the work day has wrapped, my husband and I try to get outside to play with the dogs before getting dinner started. Once dinner is done and the dishes put away, we’ll sit and share wrap up thoughts on the day, watch a little TV and then head to bed to read the news, journal and then read a little bit of whatever book is on the nightstand. Pre-pandemic, we loved seeing friends with standing dinner dates, like Tiki Tuesdays, where we roll up to the same restaurant (Pool Burger) and order our tiki drinks! I cannot wait for the world to catch her stride again...I miss hugging people and having coffee catch-ups to break up the day and talk about what is happening in the world.

What Are The Most Important Skills A Modern Day Entrepreneur Needs In Order To Be Successful? What Advice Do You Have For Entrepreneurs Who Are Just Starting Out?

Matt: 1. Healthy amount of ego. Yes, this is traditionally considered to be a negative word, but in an entrepreneur’s journey, you have to believe in yourself and the vision you are building towards when no one else does. 2. Curiosity. This is a trait I believe is overlooked because if you aren’t curious and just take things at face value, you will never build anything interesting. 3. Thick skin. People always want to tell entrepreneurs their ideas won’t work for various reasons until you are successful and then they love to say, “I knew it would work.” You have to believe in yourself and your team -- if you are easily swayed by other people’s opinions, you will not last long.

Maria: 1. Humility. Be humble because we can continue to learn and adapt to new ideas, even if they contradict our own; they can often make us better. 2. Curiosity. Never be satisfied. 3. Gratitude. An investor once told me that the highs are high and the lows are low, so take time to celebrate the little wins and have gratitude for the people around you.

Tell Us A Story Of Something That Happened To You, Something You Heard, Or Something You Saw, That Either Made You Laugh Or Taught You An Important Lesson.

Matt: It may sound like a standard answer but I was always told I could not have children from a young age, and 18 months ago my wife and I were blessed with our daughter Rose. When my wife first told me we were pregnant I laughed as I thought it was a joke but after 5 pregnancy tests it was confirmed. The past 18 months have been the most rewarding time in my life and she has taught me so many lessons from empathy, patience, etc…

Maria: In an interview with my last boss, the last question he asked was whether I think everything can be fixed or if I believe some things are just broken. It was a beautiful conversation about knowing that sometimes we have to know when to move on, professionally and personally. I was just coming out of a long-term relationship at the time and that single question helped me to close a door and never reopen it.

How Do You Think Your Industry Will Change Post-COVID?

Matt: After a year of being in our homes and not being able to see family, my hope is we will embrace the opportunity to get out and spend time with one another. I truly believe people are itching to get out and travel, spend time with friends, attend concerts, etc… and if this is the case, Spot will be in a great place to succeed.

Maria: COVID has proven that the industry must adapt to the market; the days of only offering insurance through agents has passed. This year will see a surge in digital services and new distribution channels to drive customer engagement. The pandemic has forced customers to adopt technology in ways they did not anticipate, and in turn has demonstrated a simplicity and convenience that many will want to maintain as part of their post-pandemic lifestyle (especially interaction with mobile platforms).

Driven by the changing economic conditions, I believe we will see an increase in the demand for flexible payment options, such as solutions that involve subscriptions and allow customers to cancel anytime. Usage-based fees aren't new to property and casualty insurance and it is only a matter of time before they come into play in healthcare, as consumers are much more aware of the rising costs and the overpriced premiums currently in the market.

What Do You Do In Your Free Time?

Matt: I’m based in Austin with my wife and our young daughter Rose, who both keep me pretty active. As you can imagine with starting a company like Spot, I’m big into outdoor sports, especially road cycling, backcountry skiing, and just about anything else that will give me a thrill.

Maria: I enjoy pretty much everything outdoors as well with my husband and our two dogs, Stevie and Riley. The pandemic has changed a bit of our behavior but we look forward to getting back on our skis and on the road to new adventures. I just bought a Rad Power electric bike and am stoked to add that to the mix!

What Is Your Favorite Quote And Why Does It Resonate With You?

Matt: “We overestimate what we can accomplish in a year and underestimate what we can accomplish in 10 years.” No idea who originally said this but saw it on a documentary done by Tony Robbins.

Maria: “In the end, these things matter most: How well did you love? How fully did you live? How deeply did you let go?” -Buddha

There are a hundred other quotes I could think of right now that resonate but this quote is what set me on my path to Spot. I came to a point in my career where I knew I had reached success and yet the journey wasn’t fulfilling. I realized that I had journeyed there for everyone else but myself; I journeyed there to make a point that I could. So I ask myself these questions almost every day to help keep me on my path, especially when the days are hard: Do I love the people around me well enough? Do I make time for them? Am I living my life or am I allowing life to live me? Am I letting go of the people and thoughts that weigh me down? Much of my meditation centers on these thoughts and it’s hard to reflect on shortcomings but I believe it helps me remain humble because there is nothing I do in a day that cannot be done better if tried again.

Who Is Your Role Model?

Maria: My mom. She immigrated here from South Korea when she was a teenager, learned the language, received her bachelor’s degree in Mathematics and her master’s in Software Engineering. She raised us to always believe in ourselves and that no isn’t always the final answer. She is also the kindest and most generous person you will ever meet, somehow finding the balance to be a superhuman at work while always bringing home strangers who had nowhere to go during the holidays. She taught me that you don’t just learn to tread water waiting for help, you learn to swim to shore on your own. My fierce independence is because of her.

Is There A Parable That You Often Think About? What Is It And What Lesson Does It Teach?

Maria: Growing up, my mom used to tell us a Korean proverb: “Even monkeys fall from trees.” It means that no matter how good we are at something, there is always room for failure, which means room for improvement. Remaining humble is important because it teaches us to get up and try again.

If You Can Have A One-Hour Meeting With Someone Famous Who Is Alive, Who Would It Be And Why?

Matt: Richard Branson. I am dyslexic like he is and the way he looks at the world has been incredibly inspiring to me over the years. I did not have the luxury of going to Harvard, Stanford, Wharton or any of the other universities associated with successful entrepreneurs. I have known from a young age that I will build companies for the rest of my life and the way he looks at life is inspiring. Life is not all about work or play but if you can find a way to combine them, that is the key to a life well lived. Also, after my wedding in Virgin Gorda, my wife and I had the great fortune of spending a day on Necker Island and that place is INSANE!

Maria: Satoshi Nakamoto. I would just love to know how his/her mind or minds work. How they rationalized the challenges of blockchain and bitcoin and ultimately how they made the leap to how adoption would materialize. To be honest, it’s probably the one area of technology that I struggle to fully understand and therefore it feels like an entirely new universe to me.

What Does Success Mean To You?

Changing millions of people’s lives and allowing them more peace of mind when living their best lives. People shouldn’t have to worry about the medical bills that may ensue when they’re doing what they want. Making insurance accessible and affordable is a key mission of ours and continued partnerships with regulators will be an important strategy to ensure that we continue to innovate and challenge current guidelines.

Matt and Maria’s Favorites Stack:

Books:

Maria

1. Seven Types of Ambiguity. (I love that it demonstrates how one story can have so many different perspectives.)

2. Shoe Dog by Phil Knight

3. Untamed by Glennon Doyle

Matt

1. Red Notice

2. Educated

3. Crazy Rich Asians series (don’t knock it until you have read it)

Health & Fitness:

Maria

1. Peloton (my husband had the foresight to get one a week before the pandemic hit!)

2. Yoga

3. Water

Matt

1. Road or mountain bike

2. Running (nothing more meditative than a 10-mile solo run)

3. Freeletics workout when I only have 30 minutes

Brands:

Maria

1. Rompers...Matt’s wife and I have the same set and it kills him that it’s the only thing he sees us in during the summer. It’s so hot in Austin that they’re a must!

2. Beyond Yoga

3. Vuori...softest gear you’ll ever wear

Matt

1. Arcteryx

2. Rapha

3. Goodlife T-shirts

Consumer Products:

Maria

1. iPhone to play music, a must-have

2. Rose quartz facial roller- I don’t know if it really helps but it’s incredibly soothing!

3. Chai tea with oat milk

Matt