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The enterprise channel was the wrong bet. Here is what we know, what we changed, and where we are going.

Where We Thought We Were

Thesis Entering 2024

  • • Enterprise channel partners = faster path to clinical scale
  • • 18-month sales cycles acceptable given contract size
  • • Three signed LOIs as proof of concept
  • • Regional hospital networks need AI diagnostics

What Actually Happened

  • • 12 months elapsed, 0 closed deals
  • • $3.1M burn on channel-partner development
  • • Partners deprioritized Ashford for higher-margin diagnostics
  • • LOIs stalled at procurement review stage indefinitely

The Signal We Missed

0 of 3

LOI-stage enterprise deals closed in 12 months

$3.1M spent. The signal was in the data by month 4. We held the thesis too long.

What We Learned

01

Enterprise partners are optimizers, not evangelists — they sell what CFOs already approve.

02

Mid-market clinic groups move faster and have direct budget authority.

03

Our AI accuracy advantage matters most where speed of diagnosis is a billing variable.

04

Regulatory approval is a moat only if we are direct-to-customer.

The Pivot: Direct Mid-Market

Retool Sales Motion

Jan–Feb 2025

3 AEs redeployed from enterprise to direct clinic outreach

First Direct Pilots

Mar–Apr 2025

8 clinic groups (5-20 locations, radiology and pathology focus)

Revenue Recognition

May–Jun 2025

First $180K ARR recognized from direct motion

Scale

Jul–Dec 2025

Target $1.8M ARR run-rate from direct sales motion

Early Proof

"We had a diagnosis in 4 hours that used to take two days. That changes how we schedule, how we bill, and how patients experience care."

Dr. Lena Marsh, MD

Coastal Pathology Group — Pilot Client, $42K ACV Signed

Pipeline: Direct Motion

$2.4M
Total Pipeline
$980K
Weighted Pipeline
47 days
Avg Sales Cycle

14 active opportunities vs. enterprise 14+ month cycles

Resource Reallocation

We have $6.8M in committed enterprise pipeline spend that is no longer aligned with our market reality.

The proposed reallocation shifts 100% of this capital to proven direct channels where we have early traction and measured conversion.

This is not a pivot request. It is a correction based on data.

Direct Sales Team Expansion
$3.2M
Mid-Market Product Localization
$2.1M
Demand Generation
$1.5M
$6.8M
Total Reallocation

90-Day Milestones

Timeline Milestone Success Metric
Month 1 AE rehire complete, 3 new pilots signed Sales team deployed, pipeline velocity +40%
Month 2 First $500K ARR direct-motion close Revenue recognition begins, CAC validated
Month 2 Regulatory filing for Tier-2 codes Direct billing pathway unlocked
Month 3 $1.0M ARR run-rate achieved Series A extension term sheet from existing investors

What We Need From the Board

01

Governance Vote

Vote to retire enterprise-channel strategy and reallocate $6.8M to direct mid-market motion

02

Strategic Intros

Introductions to 4-6 mid-market pathology and radiology group CEOs in your networks

03

Operating Cadence

Monthly CEO update letter through Q3 (not quarterly board meetings) for faster execution

We built something real. The market is there. We were selling it wrong. That is fixed.

Vote yes on the reallocation. We will close $1.8M ARR direct by December.

Nadia Osei-Bonsu, CEO

Ashford Diagnostics — February 2025