Start-Up Profile: Conexxus
October 23, 2008
Conexxus is a software start-up based in Louisville, KY.
1) Give me your thirty second elevator pitch on what Conexxus does?
Conexxus is a software development company providing compliance solutions to accounting, finance and similar departments. Our back office and compliance monitoring solution saves companies time and money from growing compliance burdens, such as the Sarbanes-Oxley Act, the Bank Secrecy Act, etc.
The product, CONEXXUS, was designed to bring automation to repetitive manual financial workflow processes, improve documentation management, and create a link between existing disparate software products (process, document retention, and general ledger systems). CONEXXUS is a unique best of breed, real-time, continuous monitoring system for internal controls, compliance and policy/procedure requirements. Our real time monitoring allows our solution to identify if critical procedures are being followed and completed with appropriate proof via underlying documentation and approvals. No solutions on the market today can monitor such manual processes, which typically comprise 75 to 95% of critical financial controls for Sarbanes-Oxley.
2) Your management team and advisors have ties to Advanced Imaging concepts, how did you get hooked up with them, what are the advantages of working with a team with a previous entrepreneurial venture under their belt?
While I (Jeff), was at E&Y, I won AIC’s annual audit for 2001 and 2002. During that time I established a great working relationship with AIC’s Founders: Jeff Amrein, John Reinhart, Jim Orms and Ed Kenney. I helped document AIC’s story which led to their team winning the Ernst and Young Entrepreneur of the Year Award. AIC’s product was a high speed imaging and workflow solution for physician offices which eliminated the need for paper medical charts and allowed back office staff to work more efficiently. I had discussed similarities in back office workflows for accountants at that time with AIC’s founder Jeff Amrein, but that was simply a discussion. AIC’s founders went on to grow AIC from start-up to a $20 million exit.
After leaving an electronic working environment at E&Y and moving into industry, I experienced the pain of manual, paper-laden processes, especially with Sarbanes Oxley legislation just being passed. I knew there was more efficient way to work, but could not find a solution in the market to help me as a Controller. Recalling my previous audit client, AIC, I reached out to AIC’s founders about creating an Enterprise Manual Processing Monitoring Solution. The new solution would combine AIC’s technical know-how with my audit knowledge. After these discussions, Mr. Reinhart and Mr. Amrein joined the Conexxus Board, Mr. Kenney helped with the initial business plan and market analysis and Mr. Orms came on-board as the President and COO, with over 20 years imaging, workflow and technical operations experience.
The experience the AIC team brought to the table has been invaluable to getting Conexxus off the ground. In fact John Reinhart was able to help us move forward with starting the business, from a coaching and mentoring perspective. It just may not have happened without his guidance. Overall, the value of their insight, as a team who has been in the trenches before and won, is immeasurable and has greatly impacted the speed at which we were able to bring the Conexxus solution to the market, but almost more importantly better prepared Conexxus for the highs and lows of being an entrepreneurial start-up.
3) What have been the advantages/disadvantages of founding a high-tech start-up in Kentucky?
Kentucky wants to have companies in the new economy and is working to incentivize creation of such technology jobs. Conexxus has been blessed to be a recipient of grants and awards to date, but we have noticed that many incentive programs are designed from older business models which require large capital investments, such as manufacturing, so certain incentives are simply not feasible for the virtual companies of today. As a technology company, there are a smaller number of people that understand the business model and thus raising capital has been challenging at times.
However, for Conexxus, founding a high-tech start-up in Kentucky has been advantageous to date. Aside from connecting a local experienced group of individuals to develop and launch the company, local and state representatives have proven to be extremely supportive and resourceful.
