Experience Meets Innovation

October 4, 2024

Many friends have asked why I would choose to join a startup at this late stage in my career, and it’s a fair question. I’ve been on this path before—four times in fact, with three great outcomes and one that still stings. Each experience, whether a success or a setback, has taught me invaluable lessons. Interestingly, that one less-than-great outcome delivered a dose of humility that continues to guide me today.

So, why am I here now? Two reasons stand out:

First, the energy and brainpower of the Chestnut founders and team are infectious. Their passion and focus on innovation are exactly what the insurance industry needs.
Second, I’m deeply convinced that insurance carriers deserve better options to modernize their distribution management and incentive compensation systems. This is an area where the industry is clearly underserved, and I’m excited to help change that.

In the early 2000s, when my former company ActekSoft developed what is today the most widely used compensation platform in the insurance industry, the landscape was different. At the time, most carriers were either relying on homegrown solutions or processing commissions through their policy administration systems—neither of which was optimal. When we introduced a purpose-built insurance compensation platform, we saw a steadily growing interest from carriers, which fueled continual growth in our client base. This success led to two acquisitions: first by CallidusCloud in 2010 and then by SAP in 2018.

With each acquisition, I was initially excited about the potential for increased capital and the opportunity to accelerate innovation. However, the reality proved quite different. Innovation slowed significantly due to competing product priorities, layers of bureaucracy, talent loss, and the decline of the competitive spirit that had been at the core of our original startup's DNA. While I take pride in the fact that the platform we built remains a market leader today, I believe that position is more a reflection of the lack of new entrants into the distribution management and incentive compensation market over the past two decades rather than the platform’s current level of innovation and roadmap strength. The market is ripe for fresh solutions.

In my early conversations with the Chestnut founders and lead investment partner (Joe Schmidt, a16z), it was very clear the startup DNA was alive and thriving. Chestnut was laser-focused on becoming the market leader in distribution management and incentive compensation in the insurance industry. After getting to know the team better, I was convinced they were on the right path—so much so that I made the decision to join the company. I’m 100% confident we will accomplish that goal.

My confidence isn't based on blind optimism—it's rooted in a deep understanding of what the insurance industry is looking for in a software partner and seeing all the essential building blocks coming together at Chestnut:

  • A visionary founding team
  • Deep subject matter expertise
  • Industry guidance from our insurance advisory council
  • Strong VC backing
  • Cutting-edge technology
  • Talented designers and developers
  • A clear understanding that industry leadership is built one satisfied customer at a time

I’m excited to be back in the familiar role of helping carriers modernize this critical area of their business.

I’m confident there are great things ahead for Chestnut - we are 100% focused on distribution management and incentive compensation with zero distractions and a singular focus on market leadership.