The Situation
The company had built a compelling product in the healthcare space, combining proprietary hardware with a software layer. The technology worked. Customers were using it. But revenue growth had stalled, and the team could not explain why.
The founder and the existing investor base were frustrated. The product was good, the market was real, and yet the numbers were not moving in the right direction. Hiring more salespeople had not changed the trajectory. Adjusting pricing had not changed the trajectory. The assumption was that the problem sat somewhere in execution.
It did not.
The problem was more fundamental. The business model itself was structurally unprofitable. Unit economics did not work at scale. The cost of delivering the combined hardware-software product exceeded what the market was willing to pay under the existing model. No amount of sales optimization could fix a model that was broken at its core.
This was not obvious from the outside. It only became visible through a deep, structured analysis of the entire value chain, from production and delivery through to customer lifetime value and margin contribution.
Approach
Uhlig Capital joined the board and simultaneously took on an interim CPO role, working directly inside the company to understand the product, the market, and the economics from the ground up.
Diagnostic: Understanding the Real Problem
The first step was a thorough analysis of the existing business model. Revenue streams, cost structures, unit economics, customer acquisition costs, and margin profiles were mapped end to end. The conclusion was clear: the current model could not deliver profitable growth, regardless of how well the company executed. This was not a sales problem or a pricing problem. It was a structural problem.
Business Model Redesign
With the diagnosis in hand, the team initiated a structured process to identify and evaluate alternative business models. Multiple options were developed, each with a detailed financial projection and a clear set of assumptions. The work was done in close collaboration with the strategic investor, ensuring alignment at every step.
The process was rigorous. Each model was stress-tested against realistic market assumptions, customer willingness to pay, and operational feasibility. The goal was not to find the most exciting model on paper but the one that could actually deliver sustainable EBITDA margin improvement.
Validation with the Strategic Investor
The strategic investor was involved throughout the evaluation. Models were presented, discussed, challenged, and refined in a series of working sessions. This was not a pitch. It was a joint effort to find the right path forward, grounded in data and shared conviction.
One model emerged as the strongest candidate. It restructured the revenue logic, shifted the margin profile, and created a path to profitability that the current model could never have delivered.
Financial Planning and Funding Round
With the new business model validated, Uhlig Capital built the financial plan for the transition. The model quantified the investment required, the timeline to profitability, and the milestones that would need to be hit along the way.
On this foundation, the company approached the next funding round. Uhlig Capital supported the process from preparation through closing. The combination of a clearly diagnosed problem, a validated solution, and a credible financial plan gave investors the confidence to commit.
Outcome
The company secured a new funding round, backed by a business model that had been rigorously tested and validated with the strategic investor.
The shift in business model fundamentally changed the company's economics. What had been a structurally unprofitable product became a viable, scalable business. Revenue growth resumed on a healthier foundation.
The board gained a shared understanding of the real drivers behind the company's performance. Decisions were no longer based on assumptions about execution gaps but on a clear picture of where value was created and where it was destroyed.
The interim CPO role was concluded once the new model was in place and the internal team was equipped to execute on it. Uhlig Capital's board involvement continued through the transition period.
Quote
"Everyone kept telling us to sell harder. It took someone sitting inside the company to see that the problem was not how we sold, but what we sold and how we charged for it. That insight changed the entire trajectory."
CEO, Healthcare Technology Company
Key Takeaways
- When growth stalls, question the model before questioning the team. Execution problems are common. But sometimes the business model itself is the constraint. No amount of optimization can fix a model that is structurally broken.
- Hardware-software businesses carry hidden margin traps. The combined delivery of physical and digital products creates complex cost structures that can easily mask unprofitability. End-to-end unit economics must be visible and honest.
- Investor alignment is built through process, not presentation. Involving the strategic investor in the evaluation of alternatives created shared ownership of the outcome. The funding round succeeded because the investor had been part of the journey, not just the conclusion.
- A CPO role is not just about the product. It's about the business model. Understanding why customers buy, how value is delivered, and where margin is created or lost is a product leadership responsibility. In this case, it was the key to unlocking growth.
