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Clear's Turnaround from Bankruptcy to IPO with CEO Caryn Seidman Becker

Clear's Turnaround from Bankruptcy to IPO with CEO Caryn Seidman Becker

43 segments available

Caryn Seidman Becker, CEO of Clear, shares her remarkable journey from Wall Street investor to building the identity platform we know today. After acquiring Clear out of bankruptcy for $6 million, she transformed it from a failed airport security company into a platform serving 30+ million members across travel, sports, and enterprise. Caryn discusses the evolution from product to platform, lessons from investing in Apple and Amazon early, navigating government partnerships, and her vision for biometrics transforming everything from healthcare to payments. She also opens up about leading through personal tragedy and her mission to advance genetic screening after losing her husband to pancreatic cancer. Timestamps: 00:00 Intro 05:43 The Vision for CLEAR 09:08 From Wall Street to CLEAR 13:42 The Origins of CLEAR 14:23 The Bankruptcy and Rebirth of Clear 34:41 Building the Business Model 47:46 The Future of Airport Innovation 48:33 Investing Insights and Strategies 52:17 The Importance of Free Cash Flow 55:26 Biometrics and Privacy Concerns 59:40 Expanding Clear's Vision 1:04:13 Personal Mission and Genetic Screening 1:12:28 Leadership and Company Culture 1:14:23 Future of Technology and Identity 1:25:38 The Kindest Thing Anyone’s Ever Done For Caryn #Clear #Biometrics #Identity #Entrepreneurship #WallStreet #TSA #Travel #Technology #Leadership #Innovation Presented by Ramp: https://ramp.com/business-cards?utm_s Sponsored by AlphaSense and Ridgeline: https://www.alpha-sense.com/invest/ https://www.ridgelineapps.com/ ****** Patrick O'Shaughnessy is the CEO of Positive Sum. All opinions expressed by Patrick and podcast guests are solely their own and do not reflect the opinion of Positive Sum. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Positive Sum may maintain positions in the securities discussed in this podcast. To learn more, visit psum.vc

Segments Timeline

1
0:00 - 1:30
1:30 duration316 words

The Ambitious Start

Introducing the vision behind Clear and the challenges faced in convincing stakeholders.

"He said to me, "What makes you think you can be the CEO of Clear Art?" In my mind, I was like, "Good question." I leaned over the table and I said, "Because I am a complete animal." So that was that m..."

2
1:30 - 3:01
1:31 duration197 words

Identity as a Platform

Exploring Clear's foundational concept of identity and its broader applications across different sectors.

"So when you think of I think uh the magic or the secret opportunity, it's that over 30 million people today have enrolled uh and again I what I love about that is it's opt-in. It's privacy protected. ..."

3
3:01 - 6:04
3:03 duration363 words

The Shift from Product to Platform

Insights from the speaker's Wall Street experience regarding how companies evolve from products to platforms.

"What did you learn about the product to platform uh switch or flip that happens for in companies from your Wall Street days? Yeah, so I invested in a broad spectrum of companies. Started out in risk a..."

4
6:04 - 9:07
3:03 duration274 words

Vertical Integration and Experience

Comparing Clear's integrated approach to identity services with other companies like American Express.

"So here's how I look at it. Um I think there's again I like analogies and I would look at American Express as a vertically integrated financial service company, right? They have the customer, they hav..."

5
9:07 - 10:38
1:31 duration212 words

Retrospective on Clear's Journey

Reflecting on the initial challenges faced by Clear after its acquisition and the lessons learned.

"First, so I will say in media's race, bankruptcy is a completely surreal experience. And I talked to a few uh CEOs who I had invested with through the years like Bobby Kodak or Martin Franklin at Jord..."

6
10:38 - 12:09
1:31 duration180 words

Bankruptcy and the Road Ahead

Describing the lessons learned from previous investments and how they informed the decision-making process for Clear.

"Also did bankruptcy when I was doing risk arbitrage and uh so love a turnaround. I like to say happiness is a low bar and there's not a lot lower than bankruptcy. And then you get into the 2000s with ..."

7
12:09 - 13:39
1:30 duration179 words

Acquisition Experience and Business Development

The intricate process of acquiring Clear and the subsequent efforts to revive the company post-bankruptcy.

"So that is like the whole journey put into clear shuts down on June 22nd 2009. We went to cash at Arians Capital in September 2008. A little late, not too late. And then investors said, "Well, when ar..."

8
13:39 - 13:39
0:00 duration185 words

Overcoming Challenges with Clear

The personal investment and determination involved in reviving Clear after its bankruptcy.

"uh my parents were in the government. I'm originally from DC. 911, I was 29 at the time, really changed me. I felt a responsibility and a moral obligation to help make this country a better place and ..."

9
13:39 - 15:21
1:42 duration146 words

The Bidding Process

Diving into the competitive bidding process to acquire Clear and the emotions involved.

"you have a maximum number and we bid $6 million in cash which I think was a little lower than the existing bid but it was 100% cash that night given to them and uh we won and you're in this room going..."

10
15:21 - 15:21
0:00 duration149 words

Rebuilding from Ground Zero

Rebuilding Clear from the ground up after acquisition, including hiring and re-establishing technology.

"at some level here ignorance might be bliss. I was like we've got a great idea. We've got some capital. We've built the business model makes a tremendous amount of sense. We've seen other leaders. We'..."

11
15:21 - 16:41
1:20 duration147 words

Curiosity as a Strength

The importance of curiosity and learning throughout the speaker's life and professional journey.

"I'm a voracious reader. I think my team knows I send them articles now from somewhere between 3:00 a.m. to, you know, midnight. I am enormously curious. Um I there, you know, I grew up there was no in..."

12
16:41 - 18:11
1:30 duration75 words

Legacy and Expectations

The impact of family history and expectations on shaping the speaker's career and drive.

"And so, I believed in the art of the possible. He put his family through college. They were all successful, went on to, you know, build families and and my dad served in the military. My uncle did lik..."

13
18:11 - 45:33
27:22 duration77 words

The Role of Optimism

How optimism influences decision-making and resilience in the face of challenges.

"Are you just wired optimistic? I am. Um, you know, one of my favorite sayings that I keep on my cell phone, I saw Shimone Perez speak right before he died. Uh, and he said, "Optimists and pessimists d..."

14
45:33 - 47:05
1:32 duration220 words

Funding and Resilience

A look into the funding journey, challenges faced, and the importance of resilience.

"So we raised capital in 2010 from myself uh the gentleman who started it with me and some outside investors mostly here in New York City and Bill Miller who was uh a strategic partner at Arians Capita..."

15
47:05 - 48:38
1:33 duration172 words

Future of Travel and Innovation

Discussing innovative ideas for frictionless travel experiences.

"You need innovation in airports. You need public private partnerships and when you have willing partners in the public sector you can do great things together and if you go through airports they don't..."

16
48:38 - 50:08
1:30 duration174 words

Investor Insights and Strategies

Insights on investment strategies focusing on free cash flow and company resilience.

"you said great investors. it was the name of your firm is art and science. It's qualitative, quantitative together. Um, so many investors are trying to analyze things when ultimately the creation of n..."

17
50:08 - 51:38
1:30 duration351 words

Leveraging Experience for Better Investing

Explores how past experiences shape better decision-making for investing in the future.

"Number one, so we invested in Amazon. they announced Prime and it went down. The stock went down, right? And we were like, oh, you know, you know that okay, what do we like? And then the shipping and ..."

18
51:38 - 53:08
1:30 duration407 words

Understanding Free Cash Flow

Insight on the crucial role of free cash flow in ensuring company health and growth.

"You know, those are things that I think I did at a but not with as long a term perspective as I think was required and to really map out the art of the possible and then probability weight the getting..."

19
53:08 - 54:38
1:30 duration249 words

Crisis Management and Growth Mindset

How to pivot and adapt in times of crisis while maintaining a growth mindset.

"Um and we were we create we took our salaries to zero and we created a leave of absent plan for our ambassadors so that when it really happened on March 12th uh we were prepared and pivoted to creatin..."

20
54:38 - 56:09
1:31 duration191 words

Innovations in Identity Solutions

Examining ways innovation can enhance identity solutions across various industries.

"How can AI impact member care or you know we have a little sign like AI to impact every work stream every day for everyone whether it be legal or finance or HR recruiting or member care or scheduling ..."

21
56:09 - 57:41
1:32 duration185 words

Wall Street Misconceptions

Addressing misunderstandings that Wall Street has about the biometric and travel business.

"What do you get the least credit for in the price or something like that? Well, we've bought back um let's see, we were I think we peaked at 155 million shares. We're at 133 and change. So, we've boug..."

22
57:41 - 59:13
1:32 duration272 words

Challenges and Concerns About Biometrics

Exploring the concerns around privacy, data security, and the future of biometrics.

"Um, I don't think that they believe necessarily in our enterprise identity business. Um, and that's fine. I appreciate Show Me when when we were on the buy side, we called that evidence-based investor..."

23
59:13 - 1:02:14
3:01 duration254 words

Future of Seamless Transactions

Discussing the vision of a future where biometrics simplify everyday transactions.

"You can control your own data. You can purge at any time has been really important, but I think that that is a big one. Um I I think that's the biggest one quite frankly, which is also why I like bein..."

24
1:02:14 - 1:03:46
1:32 duration200 words

Enhancing Experiences in Sports

Discussing how identity solutions can enhance security and efficiency in sports venues.

"With the World Cup coming in a year and with the Olympics coming two years after that, I think that there are some big opportunities to enhance the experience and enhance security in stadiums. We're p..."

25
1:03:46 - 1:05:16
1:30 duration158 words

The Need for Seamless Health Records

Discussing the complexities and improvements needed in health data management.

"You had to go to the fourth floor to get a CD ROM at Memorial Sloanketering. You then brought the CD ROM back to your office so you could digitize it so that you could send those scans to other hospit..."

26
1:05:16 - 1:06:48
1:32 duration137 words

Personal Journey and Advocacy

Sharing a personal story of loss and the journey towards genetic screening advocacy.

"Um, and it it's an industry that operates on pretty slim margins. Clinical trials, you know, I always said, I would love to put my husband's data up there and you find us versus I go find you. It is a..."

27
1:06:48 - 1:08:20
1:32 duration195 words

Leading Through Adversity

The emotional and leadership resilience in facing personal and professional challenges.

"H how how were you able to lead through the experience with your husband and co like how did you yeah how did you do it? You know sometimes I ask myself the same thing. Uh again, I think I have these ..."

28
1:08:20 - 1:09:50
1:30 duration239 words

Personal Resilience and Legacy

Balancing personal grief with a commitment to a legacy and positive change.

"So, communication key. Um, my husband, that was a different kettle of fish. Um, I'm the paranoid one who was always like, "Is this lump? Do you think this is cancer? Do you think this is cancer?" And ..."

29
1:09:50 - 1:11:22
1:32 duration104 words

Advocacy for Genetic Screening

Promoting awareness and action for genetic screening based on personal experiences.

"And so, um, really now fighting for genetic screening and really wanting everyone to be genetically screened. In Finland, they screen umbilical cord blood for 75 cents when a child is born and tell th..."

30
1:11:22 - 1:12:53
1:31 duration219 words

The Importance of Genetic Awareness

Revealing the necessity of early genetic screening and community awareness.

"His brother was eight years older. It all came back good in July 2021. Turns out they missed it. Um, and he was diagnosed in January 2022 with stage four pancreatic cancer that had metastasized to his..."

31
1:12:53 - 1:14:24
1:31 duration194 words

Community Engagement for Health

Efforts to engage community members in genetic testing and awareness based on personal advocacy.

"Um and so we bought 2,00300 were picked up uh for the high holidays. And the rabbi who was a dear friend of my husband's my husband was chairman of our synagogue uh spoke about it. We had little um fl..."

32
1:14:24 - 1:15:55
1:31 duration237 words

Faith and Family Practices

Exploring the significance of family traditions and faith in personal resilience.

"I I have this question I did not expect to ask. Um, what what is the most powerful uh idea or ritual derived from your religious tradition and faith? I would say it is two things. Um, it is the mornin..."

33
1:15:55 - 1:17:25
1:30 duration220 words

The Essence of Effective Leadership

Discussing the key qualities admired in leadership and the importance of a collaborative spirit.

"Hard to know where to go from there. I know. Back to biometrics. Say back to back to free cash flow. Even dog. What do you got? Pro for the name of the guy at that VC fund. Yeah, maybe the right quest..."

34
1:17:25 - 1:18:56
1:31 duration192 words

Employee Motivation and Hiring

Reflections on hiring practices and understanding team motivations in a corporate environment.

"I love sports. I used to want to be a sports reporter. I thought Brent Musberger was all that. So I wor for the Michigan Daily, but I never quite got to football. I was more on like the club soccer an..."

35
1:18:56 - 1:20:27
1:31 duration198 words

The Challenge of Finding the Right Talent

Addressing difficulties in hiring and the disappointment in others' motivation levels.

"I have a couple questions about company building just like a retrospective on 15 years of doing this kind of categories. What have you learned about hiring? That I'm not as good as it at it as I would..."

36
1:20:27 - 1:21:58
1:31 duration228 words

Understanding Motivation and Drive

Insights on motivation levels among employees and personal experiences driving a work ethic.

"Do you have a theory as to like or or like when were you always like this? Did you like wake up or was there like a moment or a precipitating thing like I I know no other way. I don't this you just do..."

37
1:21:58 - 1:23:30
1:32 duration148 words

Living with Purpose and Energy

The importance of living a life full of purpose and energy while contributing to society.

"So live your best life and make a difference for others and pay it forward. Be a change maker. It's I don't know any other way and I don't understand others who don't. Nothing gets me more energized t..."

38
1:23:30 - 1:25:01
1:31 duration171 words

Navigating Fragility in Marketing

Addressing the fragility of brand reputation and the pressures of negative public opinion.

"So a fund manager used to say it's the elevator, it's the staircase up and the elevator down, right? And we've experienced that, right? somebody tweets something negative, it's one person's opinion in..."

39
1:25:01 - 1:26:34
1:33 duration185 words

Investors' Perspectives and Trends

Examining how investor perspectives have evolved and the challenges of aligning expectations.

"Anything you've learned about investors that's interesting to you being a company rather than a colleague? Sometimes I'm surprised at the lack of big picture questions. um really like we're right here..."

40
1:26:34 - 1:28:05
1:31 duration103 words

Wisdom from Great Leaders

Sharing the valuable insights and wisdom gained from interactions with influential leaders.

"Yeah. Um and he was just in his backyard. Um, his grandchild was in the house. uh the stories that he would tell, the crispness of his mind, his humor and his humility. Uh for someone with that kind o..."

41
1:28:05 - 1:29:36
1:31 duration143 words

Empowering Change in Identity Solutions

The vision for Clear's future and the transformative role of identity in building trust.

"I think identity is about building trust physically and digitally. So um both in the US and outside the US for clear. What part of the next 10 years for you personally gets you the most excited? Like ..."

42
1:29:36 - 1:31:08
1:32 duration187 words

Global Opportunities for Innovation

Discussing the impact of upcoming global events on innovation and business opportunities.

"I think the World Cup is a real forcing function for our country and it's only one year away. I think you know it was in Doha last time uh and in the middle Middle East. I think the opportunity to bri..."

43
1:31:08 - 1:31:53
0:45 duration42 words

Closing Reflections

In a reflective closing, the speaker responds to a traditional closing question about kindness in a personal context.

"When I do these, I ask everyone the same traditional closing question. What is the kindest thing that anyone's ever done for you? Probably the letters that my husband left me with. Beautiful. Thank yo..."