Have you ever wondered what it takes to turn a groundbreaking idea into a successful startup, especially in the face of seemingly insurmountable challenges? In this episode of The Angel Next Door Podcast, Marcia Dawood sits down with Tricia Compas-Markman, a civil engineer turned entrepreneur, to explore the uncharted waters of innovative problem-solving and business resilience. Through their engaging discussion, listeners gain an intimate look at the complexities and triumphs of launching a mission-driven venture. With a background in civil engineering from Cal Poly and a passion for providing clean drinking water in disaster zones, Tricia shares her journey from a simple master's thesis to founding DayOne Response—a company dedicated to creating family-sized water treatment devices. Her story is one of visionary thinking, relentless determination, and an unyielding commitment to making a positive impact on vulnerable communities worldwide. In this episode, Marcia and Tricia go deep into the entrepreneurial process, covering topics such as tech transfer, investor engagement, complex sales cycles, and the strategic shifts required for sustainability. Listeners will learn about the importance of intellectual property, the challenges of regulatory approvals, and the intricacies of selling to large organizations and relief agencies. Moreover, Tricia’s pivot to aiding other entrepreneurs through Venturewell showcases the enduring value of lessons learned, even when a startup doesn't survive. This episode is a must-listen for aspiring entrepreneurs, investors, and anyone intrigued by the journey of turning innovative ideas into impactful realities.
Have you ever wondered what it takes to turn a groundbreaking idea into a successful startup, especially in the face of seemingly insurmountable challenges? In this episode of The Angel Next Door Podcast, Marcia Dawood sits down with Tricia Compas-Markman, a civil engineer turned entrepreneur, to explore the uncharted waters of innovative problem-solving and business resilience. Through their engaging discussion, listeners gain an intimate look at the complexities and triumphs of launching a mission-driven venture.
With a background in civil engineering from Cal Poly and a passion for providing clean drinking water in disaster zones, Tricia shares her journey from a simple master's thesis to founding DayOne Response—a company dedicated to creating family-sized water treatment devices. Her story is one of visionary thinking, relentless determination, and an unyielding commitment to making a positive impact on vulnerable communities worldwide.
In this episode, Marcia and Tricia go deep into the entrepreneurial process, covering topics such as tech transfer, investor engagement, complex sales cycles, and the strategic shifts required for sustainability. Listeners will learn about the importance of intellectual property, the challenges of regulatory approvals, and the intricacies of selling to large organizations and relief agencies. Moreover, Tricia’s pivot to aiding other entrepreneurs through Venturewell showcases the enduring value of lessons learned, even when a startup doesn't survive. This episode is a must-listen for aspiring entrepreneurs, investors, and anyone intrigued by the journey of turning innovative ideas into impactful realities.
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Marcia Dawood
Well, hi, Trisha. Welcome to the show.
Tricia Compas-Markman
Thanks for having me, Marcia. It's good to be here.
Marcia Dawood
Well, we have been through all kinds of things together, so I'm really excited to have this conversation so that we can share some of the amazing insights that you have learned and gained all through your entrepreneurial journey. So why don't you start off by telling us a little bit about your background and how you got into entrepreneurship?
Tricia Compas-Markman
Sure. Yeah. So I think it really started when I was an undergrad at Cal poly studying civil engineering. As many people I wanted to help, people didn't want to do that in the medical field. I just thought engineering was the right path for me. And through that, I became really passionate about clean drinking water through some experience with engineers without borders. But I just didn't quite find where my fit was in consulting or working for a government agency, as most civil engineers did when civil engineering students did when they graduated. So through some work and meeting a professor that had a conceptual idea for a product to help in disaster response, I went on to do my masters and developed the technology that then became the main technology for the startup that I created.
Tricia Compas-Markman
But I was very risk adverse. I had no idea I was going to go into entrepreneurship, but was given a lot of guidance through some really great mentors to get there and started a day. One response about nine months after finishing my thesis in 2009.
Marcia Dawood
Amazing. So tell us a little bit about what you created, how it worked, and how it was so important.
Tricia Compas-Markman
Yeah, so it was a family sized water treatment device. You can imagine it like an oversized backpack, a camel back bladder, and it allowed families to collect, treat, and transport water on site. So after a hurricane or an earthquake, even for vulnerable communities to be able to have immediate access to clean drinking water and for them to do it, be empowered to clean it themselves and understand how to do it. So, taking that back, we had basically a plastic sleeve that you could put over a newspaper. That's where I started. So took a lot of time in the lab to create the technology and the kind of the failures that we had, but keeping that essence of really making sure that it worked for the stakeholders and as we learned, it really needed to also work, obviously, for our customers at the right price point and getting it to a disaster zone in a quick, very quick amount of time. So, yeah, the development of the technology probably took about four years before really coming to, and then we continued to iterate on making improvements and looking at the quality.
Marcia Dawood
And this wasn't just for third world countries or anything like that. This could be used in the US. It could be used anywhere.
Tricia Compas-Markman
Exactly right. The inspiration really came from back in like 2004, 2005, when the tsunami hit Southeast Asia and Thailand, Hurricane Katrina here in the US. And you just. And that's when I started my master's thesis. I was like, oh, gosh, this is happening even to us, in the US. And there's. That's a whole nother story that you're very familiar with. But everybody needs clean drinking water.
Tricia Compas-Markman
I mean, at a disaster, you need water, you need medical and you need electricity, but water you need to sustain. And so, yeah, it wasn't only for the inspiration, really was for a lot of international work, but we saw the use being in California, saw the use threat of, with climate change, wildfires, preparation. We started to get really into the prepper market and also into the us military. Was actually working with the US Navy and thai marines. Really catalyzed a lot of the work and research and development that we did.
Marcia Dawood
Interesting. So you ended up starting a company, a for profit company, for profit company, to sell the water bag. And you took on investors, angel investors like me.
Tricia Compas-Markman
That's right.
Marcia Dawood
I was one of the investors. And so one thing we haven't really talked about on the podcast before is about tech transfer. So tell us a little bit about what that entails and what that was like, because the technology was actually developed while you were in school. So Cal Poly actually owned it or how did that work?
Tricia Compas-Markman
That's right. That's correct. Yeah. And that's quite like a decision point and not really a decision I had, but for a lot of entrepreneurs, especially at the university, as they are developing, even in laboratory, national laboratories, things like that, as they're developing research and into innovations and inventions, who owns it? And for me, it was very clear that it was my master's thesis. I had no thought that I was going to go do this commercialization, start a business. It was very clear I was using the resources of Cal Poly. This was for me to get my master's degree. And as we started to see the commercial potential, we went and pursued the intellectual property and the patents, but there was no question about it, it was owned by Cal Poly.
Tricia Compas-Markman
So then I had to, again, have no idea. I was working in the lab, just trying to understand environmental engineering as somebody who studies civil engineering was. I was took under, my thesis advisor, took me under his wing, helped me get to the tech transfer team at Cal Poly, who were very great to work with. There's also that can be very challenging depending on a university. And we really worked to see their patent attorney said, hey, great story. Like, we don't know if this is gonna work. And we actually went through the process of it, and happy to talk about those challenges, but. But it was, I had a lot of support.
Tricia Compas-Markman
I had no idea how that the patenting and that process went and how you continue once you're issued a patent doesn't mean you stop. You wanna build that strategy. And I was doing that before even starting a company. So that was also interesting balance.
Marcia Dawood
Yeah. So then when you went to take on investors. Oh, yeah. How did that work? Because I know the investors would be like, wait a minute, you don't really own this. So if we're going to invest in it, we don't really own it, so.
Tricia Compas-Markman
Yep. Yeah. And I think when you have so many stories, is at an early stage, what is the asset of a company like? Great. The team is so important and all that, but what is it? And it's usually the intellectual property. And so I had some good advisors and things like that to try to help me understand that I needed to get that buttoned up, but that was a make or break for our early, and rightly so for our early investors as well. Okay, you don't own it. Day one response. It's not a, we had to go license it from Cal Poly, and we had some good support and good attorneys behind us and a very collaborative partner at Cal Poly to help us do that.
Tricia Compas-Markman
But getting that license was important. And not only, I learned not only for, like, in the today of it, but what about the future? Because investors are, how am I going to get my money out? What does this look like if you get acquired? And that was a thought process as an entrepreneur, as a first time founder, like, I got to be thinking about that.
Marcia Dawood
Right.
Tricia Compas-Markman
And. But, yeah, because you didn't want to be stuck that all of a sudden Cal poly is making decisions that day one response and our investors and boards should be making. So we had to make sure that was really clear. But we had the exclusive license to commercialize it in the different fields of use, but there was a royalty kickback, and we had to understand that for our planning and budgeting too.
Marcia Dawood
Right? Yeah. Wow, so many things to think about.
Tricia Compas-Markman
Yeah. And we were the guinea pig for Cal Poly. They changed their licensing agreement on us, so we really had to under. It helped we could understand. Oh, you don't want that. We negotiated that, tried to come to mutual understanding. I think that helped team me up for negotiating with investors. This has to be a mutual agreement.
Tricia Compas-Markman
Because we're going to be in this for long term. So we looked at Cal Poly as an investor, like, they didn't invest as a typical angel or anything, but they, it was essentially, we got the license, so treated them as such.
Marcia Dawood
Right. Because you developed all the technology under their dime. Yeah, that makes sense. Yeah. Wow, that's interesting. So then, all right, so the other challenge that you had, not, that wasn't already challenging Washington, actually. Now selling this because you were selling to, you mentioned to the military, you mentioned different relief and disaster organizations. So talk about that a little bit.
Tricia Compas-Markman
Yeah. Oh, man. We had so many hurdles. But I think one thing that was as myself, as a technical founder, having to step into the CEO, be a small team, being very much leading in sales, and we had another strong sales. A co founder, strong in sales, too, is, well, what can we even sell? And there's a couple of things. Right. We had to get through a whole regulatory hurdle on that with EPA, environmental Protection Agency registration. It took us four years to be able to sell a clean drinking water technology.
Tricia Compas-Markman
You can understand the liability of making sure people have clean water and it's okay and it's accessible and safe. So how are we, we can wait four years to generate revenue. And so we had to get pretty creative started with pilots and just show the potential of what we could do for investors. And as we learned what the sales cycle was for relief organizations, so we tried, okay, let's pilot. Let's understand it. Where do we need to use it in the sense of, do we need to use it in different geographies, in different use cases? Do we actually use it in a disaster or can we use it post disaster? What's enough for a customer to see that they are going to be okay? Yeah, this checks soft. Now we want to buy it. And I think what we quickly, and then it was through the whole life of the company understood is how complex the sales.
Tricia Compas-Markman
It was complex selling to large organizations. And I don't just mean relief organizations, but also to the military. But I will give an example with the relief organizations is you have, who do you start with? Where do you start? How do you build those relationships? So we started doing that. We got to the International Federation of Red Cross and Red Crescent society. Really large organization was not somebody we were going to start with. We had done some, we proved some things, but we did start an early, we developed that relationship pretty early on. They said, okay, let's pilot it. And they pilot in two in Sierra Leone and Ghana.
Tricia Compas-Markman
They were testing us. Could we ship it there from California? Could we ship it there on time? Could you get it there? Would they know how to use it with minimal instruction, all those sorts of things. And then we started to build a relationship with the headquarters in Switzerland. So we had to maintain these relationships in the different country. Offices in Switzerland then became procurement logistics. Very small team. How did we do that? Were we an approved vendor? Then they had to go check our vendors and our manufacturers. That was just an insight into how complex the sales were.
Tricia Compas-Markman
And what if somebody from the customer organization changed jobs? Because it happened a lot. Those people in the field, they moved to different disaster. So we learned how we needed to build relationships with multiple layers within the customers. And then we really leveraged our advisors and board who maybe had relationships at different levels to try to help us build the brand of what we were doing because that was a big thing too, is whose day wouldn't response. Why? Who's going to trust this? So we had to leverage a bigger team to help us build our credibility. Took a while but we were able to figure out some of those things. But you can imitate. The sales cycle was long, it was twelve months.
Tricia Compas-Markman
Once you hit a pilot, how do you knock that down? Right. The investors constantly. How do you get that down? How do you decrease that time? How do you sell more?
Marcia Dawood
But it's so hard because you're, you have to prove that the product works and you have to prove that people can use it. And like you said, that they could use it with minimal instruction.
Tricia Compas-Markman
Yeah. So what we try to do is how do, okay, that's a behemoth of a problem. How do we take that down step by step. So let's just get a couple of these in the hands of some, we knew some people in Panama. Let's just go test it and see. And nobody drank it at the time, right? We were still going through, that wasn't the test we were trying to do. We were going through those EPA registrations, let's get the use down, let's show it in different environments. We had different smaller relief organizations say, hey, we'll take a couple of those in our relief workers bags and they'll go test it for you.
Tricia Compas-Markman
Take photos, understand it. So we tried to break down the problem and phase it out. And could we build up enough basically collateral and pilot examples to then really showcase it? Yeah, but that was, there was a lot of learning behind that. And again that the opportunity with the US Navy I think helped us put a stamp of approval. Like the work with the military helped us with the relief organizations, which went back and helped with the military. So. Back.
Marcia Dawood
Right, right.
Tricia Compas-Markman
Yeah, yeah. Not to get distracted, we had to keep our focus, too, as a small team entering different markets. And we wanted to as well, but investors were constantly asking, ask us, are you getting defocused? What's happening? So we had to show how each of these things would help each other.
Marcia Dawood
Right, right. Well, I would just remember I can speak for myself and probably for a lot of the other investors, we just thought the solution was so much better than what was out there. Like, this whole. In doing diligence on the company, we found that one of the biggest things that's used is either a bucket to collect the water and these tablets that you could maybe put in to make the water clean. And.
Marcia Dawood
The water was already looking pretty nasty, so then. Or you could take a life straw or whatever they're called, and. But then you'd be literally drinking this nasty looking water, hoping that this life straw was going to clean. And I guess it does. I mean, it's apparently a very good product. It's just the whole mental component of it, I thought was a little much. So I really like the idea that you could collect the water with the bag. You could treat the water, and you could watch all of the sediment kind of fall to the bottom, and then you had a way of getting the sediment and all of the kind of nasty stuff out through the filter that would then go into a glass or a cup or whatever.
Marcia Dawood
That would be clean.
Tricia Compas-Markman
Yeah, no, I think there was a tension of what you're talking about. Right. That, like, where our customer was the relief organization and the water, the heads of the water part of the organization, but our end user was the individuals who were displaced or who were in vulnerable environments where they maybe were affected seasonally by floods or whatever, the fact is. But they needed to be able to use it. And we couldn't rely necessarily in speaking the same language. We had pictographs. We needed to make it easy, simple, visual, like you're saying, and they had to trust it. So we went out in the field to pilot it, to work with them.
Tricia Compas-Markman
We did multiple pilots in Haiti about a year after the major earthquake in 2010 to work with them, understand it, because if we didn't, it wouldn't. It really wouldn't work. But there was maybe a tension of, hey, we really were intentional about how it worked. Easy coming out of a box. Marcia, could you use it if we give you no instruction? Was everything there that you needed? But then a bit of attention to your point, is it good enough, like, how easily accessible are buckets in different environments? Is it as accessible to the product we have that has to be shipped from different locations? So we ran into this, like a really good solution to a good enough solution, but possibly a little bit more accessible.
Marcia Dawood
Right.
Tricia Compas-Markman
That was tough. Yeah, yeah. Cause we saw the end users and the families and individuals. Oh, I get it. I trust it. There's a lot about trust and behavioral change that we were grappling with and that we worked really hard on. How do you do that kind of worldwide?
Marcia Dawood
Right, right.
Tricia Compas-Markman
Yeah, yeah.
Marcia Dawood
Jeez. And then when Hurricane Harvey hit, now we were dealing with it here in the US. And to your point of good enough? Well, here in the US, we have a lot of access to bottled water. That's right. Even though it's more expensive, it's heavy, you can't ship it. I mean, I remember hearing that people were bringing, like, their pickup trucks with bottled water from other places around Houston just so that people could have drinking water, which is great, but in a lot of cases, you can't do that other places in the world. Right, but. And why couldn't they think that this water bag solution is even better? Because way cheaper, way easier to use.
Marcia Dawood
You could reuse it over and over again, and you wouldn't be having to have this big, expensive bottled water. But bottled water was good enough.
Tricia Compas-Markman
Yeah. And I also think it was a. It's a behavioral thing.
Marcia Dawood
Yeah.
Tricia Compas-Markman
Like, you and I were used to going to our tap, getting a glass of water. Maybe some of us have filters on that, depending on where we're at. Right. But we don't think about how our water is treated. Most of us don't have, and that's not the case in a lot of remote areas. They have to know they're treating their water. So here in the US, it's. There was a behavioral thing and then also a logistics thing.
Tricia Compas-Markman
Right. You had a lot of different sorts of consumers, like Coca Cola or Budweiser or local microbrews, changing their facilities to produce water instead of the beer that they. And so, which is great. Like, they. They were all catalyzed to go do that and help the local populations or the regional populations affected. But I. That's sometimes, like, how sustained is that solution? It's maybe immediate. And then could our solution come in and help? And then you and your network within Texas and within the Houston area really helped us get.
Tricia Compas-Markman
We actually partnered with a brewery. You helped us get to the mayor's office. So again, that was like our learning of, like, how important you were more than an investor to us. But those are like the great kind of key people that you want, not just financing, but all these other kind of resources. And whether that's a personal kind of mentoring sort of resource or network and all that, you helped us get in and actually get the product to those in need. And we did that. Right. We did that.
Tricia Compas-Markman
The mayor's office, we had Toyota helping us. They had impacted within their. In Texas and their presence there. So we did a lot in a short amount of time, but it was the network that helped get us there, because we weren't there. We were in other locations, but we started to see them. Yeah.
Marcia Dawood
Right. Yeah. And I guess at the end of the day, when you're a small company and you're trying to ship a product worldwide in record time, when you have no idea what the next disaster is going to be, it does create quite the challenge.
Tricia Compas-Markman
Yeah, yeah. And maybe just one thing to reflect on. I. When you're talking about, like, sales, is that became. We had to shift our business model, and I think we didn't quite get it. We had the thought of it and we tested it, but we didn't want to wait for a disaster. Who are champions that we could pre position technology? Who was willing to buy that at that before? Because in disaster is money. Like, there's a lot of funding that's available pre disaster, that funding maybe not unlocked yet.
Tricia Compas-Markman
So. Right. We worked with corporate sponsors to help seed inventory. We built a whole distributor network here in the US and internationally, and we were starting to see the movement of that. But it was a little bit of, like, we wish we would have seen that figure that out four years earlier, but that was such a business model was hard. And then as a technical founder, it was what was key. Again, the technology was okay, but figuring it, like. And I mean, it was, I think, really good, but if you could figure out the business model, you could almost put any technology through that.
Tricia Compas-Markman
So I had these learnings of just how much business, like, the complexities of business. And as a technical founder, like, just opening yourself up to. That's good. I don't want to live in the lab. I want to go. I want to go problem solve these things.
Marcia Dawood
Sure. Yeah, yeah, yeah. And even though. Yeah. And even though day one didn't make it as a company, but the learnings from it were fantastic. And then Covid hit, so there really wasn't.
Tricia Compas-Markman
Yeah, I don't think we would have survived.
Marcia Dawood
Yeah, I don't think so. But. But from there, you have now taken that to a new place. So tell us a little bit about Venturewell and how you're helping so many other entrepreneurs with your.
Tricia Compas-Markman
Yeah, I'm really grateful. I'll give you a little bit right before joining Venturel is like, what do you do? So I had to close the company day one response took about a year to do that. What do you do? As a first time founder of a smaller startup, what do you do? I had no idea, but I had several conversations with you, had board members, mentors that helped me think through that and open up. So do I keep working on water? Do I work in innovation? Do I go be a consultant somewhere? And Venturewell, a nonprofit organization that helped me as a university student understand entrepreneurship, give me these initial tools to open myself up as a technical founder to the world of business and entrepreneurship. And Venturewell was an early investor in the company. It was just, hey, let me reach out to Venturewell. Christina Tamer was our investor contact at the time and just see what's happening. I wanted to stay close to entrepreneurship, and just coincidentally, she's like, hey, we're actually hiring.
Tricia Compas-Markman
We're opening up our team here, and we could really use somebody with that entrepreneurial mindset. So I did not know that's what I was going to go do. But I know between you and some other mentors that what about teaching and sharing your experience? And so it's been a great now with Venturewell to work with a bunch of other founders, be a little part of their journey, but to share, like, entrepreneurship can be lonely, it can be challenging, but if you build a good tribe and network, it's really exciting to see the innovations and just the challenges that people are solving for our world.
Marcia Dawood
Yeah. And I think the aspire program that Venturewell has is just so good. And Christina was on the podcast in the past and talked a lot about it. But having that accelerator program that entrepreneurs can really fit into their own schedule, because, yes, there are virtual classes to attend, and yes, there's a three day in person meeting. But I mean, that seems pretty, pretty tame compared to what some accelerators have people go through. And the content was so good. And I feel like I heard so many of the founders come out of the Aspire program saying, I just know. I feel like I know so much more now, and I feel so much more confident to be able to go and have conversations with potential investors.
Tricia Compas-Markman
Yeah, I think maybe just two things from that. So the Aspire program, programming, being investor readiness, investor engagement. You talk a lot about drive by advice or drive by mentoring and it's not that.
Marcia Dawood
Right.
Tricia Compas-Markman
Actually we're like, because you've been a mentor for Aspire, we have incredible network of mentors. Many are active investors. They're not investing in the companies, but they're helping come in this particular program. That's not the point. But the point is to build up these mentors and supporters so that the founders can exit with a lot of confidence, with a viable funding plan or with saying, hey, I need to go more, get more non dilutive funding before I'm ready. Or maybe getting working with angels and VC's is not my thing. That's okay. Everybody's path is different.
Tricia Compas-Markman
But yeah, I think the network of the mentors is great. And then one thing recently we found from a founder who's a working mom, two young kids, she's in Aspire and she said the accessibility of that program was huge for her. It's a sprint, it's about six weeks, five to six weeks, and most of it's virtual and then it ends with two days in person. And so it's, you can learn a ton. But we try to make it accessible. And so that was exciting to hear the story that we could help a lot of founders that may not already have a network. I was very fortunate to have one to help me through the financing process. But let's not make it like let's try to make people succeed.
Tricia Compas-Markman
And, and if they, if it's not for their company and they go take those tools and go bee entrepreneur or go help another startup, I mean, I think that's success too.
Marcia Dawood
I completely agree. I mean, we hear about companies that don't make it. And that certainly does not mean that the founder did a bad job or didn't do the right things or all that kind of stuff, I mean, we expect that at least 50% of startups are not going to make it, but that doesn't mean that all those learnings have to die with the company. I think in this case it was the opposite. I think all of us learn, not just you, but as investors, I learned so much, I know so many others that did, and we've taken that. And day one response does live on because we talk about it in almost all the aspire programs, and we're always going back to the learnings and sales cycles, into large organizations, whether it's the military, NGO's, hospitals, colleges, it's challenging. So just being able to have that knowledge that as an investor, if we're looking at companies and we're seeing founders saying, hey, no big deal, I'm just going to take my product and sell it into all the major hospitals. I don't know if it's really going to be that easy.
Marcia Dawood
Right. So I think those are some of the things. Like, as we're doing diligence, we really need to be looking at.
Tricia Compas-Markman
Yep, yep. And then we, as in the ventral side, try to help get teams ready for that. Yeah. Who within the hospital are you selling to? What? Getting the nuance of that will help them be successful, but will help them set up for conversations with you and other investors to understand, like, oh, they get it. They still have a lot to figure out, but they, like, get, when you get excited, when somebody's like, oh, they really understand what they're doing. Yeah. So, yeah, it's been a, I had no idea that I would get to this part of the journey, but I think having your support, it was our mutual friend Ann Magus said, make sure you have people that are keepers of your journey. And you're a keeper of my journey.
Tricia Compas-Markman
Help get me out of the rut of. Yeah, that ended, but you still have potential to go do something else. Yeah. So I appreciate that.
Marcia Dawood
Yeah, well, and that's why I featured your whole story in my book, so. Yes. Which everybody should go get. Do good while doing well.
Tricia Compas-Markman
Yeah, yeah, no, yeah. Thanks, Marja. Yeah, it's an excellent read.
Marcia Dawood
Yeah. Well, thanks so much, Trisha, for coming on the show.
Tricia Compas-Markman
Thank you for having me. Yeah. Excited about what we're going to do next.
Marcia Dawood
That's right.