OpenSeed founder meditates on business one year after winning Startup Pitch Competition
In the weeks leading up to this year’s Miami Herald Startup Pitch Competition, the Herald will be catching up with winners from last year’s competition to learn about the progress they’ve made. This is the first of the series.
Jonathan Marcoschamer’s idea was this: There is too much stress in the world — so why not create a product where people can reset their minds?
Various attempts at such a product had been attempted, with little success, he found. So using his experience in both business and mental wellness, Marcoschamer came up with a product he believed would be a market smash. It would be a private, sensory-controlled chamber that can be placed in any number of environments.
Judges at the 2019 Miami Herald Startup Pitch Competition liked the idea, naming Marcoschamer’s company and product, OpenSeed, winner in the competition’s health vertical.
About a year later, Marcoschamer, 43, says there have been some wins here and there. But Marcoschamer admits much of OpenSeed’s potential has not yet been realized.
“We thought by now we’d have a more clear product market fit,” Marcoschamer said.
The company is still in “bootstrapping mode” — meaning it is self-funded, he says. It will begin pitching investors in earnest this year — but so far, sales represent just a fraction of the funding Marcoschamer has been able to count on. He is still tapping into savings to run the business.
Marcoschamer declined to say how many units he’s sold, but said OpenSeed “[has] sold and have over $750,000 [projected sales] in the pipeline.” OpenSeed will also soon be featured in a major motion picture (he signed a non-disclosure act barring him from saying more). The pods retail for $22,000, or can be leased for $650 a month.
And Marcoschamer said he has found a new, and cheaper, manufacturer in China.
One of Marcoschamer’s laments is that support from Miami’s business community has fallen short of his expectations. He says he wishes there were more resources among other Miami-area entrepreneurs, financial or otherwise.
“In terms of capital, or investors willing to take on entrepreneurs, I think we’re still behind,” he said.
Qualified talent, too, he said, seems hard to come by. Right now the company has two full-time employees, including himself, plus some contractors.
“I just find it difficult to find the right people,” he said. “When you have the right people, you’ve got to hold on to them. It applies to not only development, but also business, sales, and fundraising.”
Marcoschamer seems better equipped than most to handle the ups and downs of entrepreneurship. In addition to meditation, Marcoschamer also uses his skills and interest as a percussionist to steady his mind.
“Once you’re in it, you ask yourself, ‘why don’t I do this every day?’ ” he said.
This story was originally published February 3, 2020 at 6:00 AM.
