It’s All In The Numbers

Successful tech startups need visionary leadership, but they also need thoughtful financial oversight. At Tollgrade Communications, Inc., we had both. While I focused on accelerating the business, our financial team kept us grounded.

Doug Halliday: The Modern CFO Doug Halliday became our full-time CFO just before our IPO. A CPA with prior IRS experience and a partner at Frank E. Sparr & Company, Doug brought financial insight, strategic foresight, and calm logic. He quickly learned our industry and contributed to major decisions about product development and investment strategy. His leadership extended beyond numbers: Doug connected with investors, aligned financials with strategy, and helped guide our evolution.

The Docs: Our Angel Investors Before going public, our board of directors was made up of our earliest backers—a group of Erie-based cardiologists we called "The Docs." These angel investors believed in our technology and business model. Their financial support saved us in a dire moment in 1992 when our ELPA and OIU products were failing, and cash was scarce. Rich Heibel and his colleagues stepped in with critical capital and also served on the company’s Board of Directors. Within three months, we turned a profit. Three years later, our IPO valued the company at $47 million. By 2000, our market cap reached $2 billion. Their faith and logic-driven decision-making gave us not just money but strength.

Board Evolution and Governance Ahead of our IPO, we restructured the board for public market credibility. Industry veterans like Dan Barry, Bob Kampmeinert, Dave Egan, and James Barnes joined us. Rich Heibel remained, keeping continuity. This transition highlighted the difference between private and public governance. A public board has broader fiduciary duties, compliance oversight, and a mandate to protect shareholders. When our shares hit the ticker, we no longer worked for ourselves—we worked for our investors. Over the next decade, our board helped implement Sarbanes-Oxley reforms, supported growth, and facilitated my leadership transition after 10 years as CEO.

The Banker and the Workout Guy Jack Bertges, our loan officer at Creditanstalt Bankverein, was a trusted advisor. He not only secured us a $3 million credit line but also introduced us to Ameritech, our first major customer. As our finances tightened, Jack recommended Garvin Warden of Cornerstone Capital Advisors. Garv, a seasoned workout consultant, helped us navigate risk without gutting the company. Weekly calls with Jack and daily input from Garv helped us build a foundation of financial discipline that made everything else possible.

Craig Wolfanger: Strategic Financial Architect Craig Wolfanger, President of Raptor Partners, was our financial hawk. He guided our private placement at $3.50 per share, then led our $15.8 million IPO at $14. He engineered two strategic acquisitions: Lucent's LoopCare for $62 million and Cheetah Technologies for $14.3 million. Both were accretive within a quarter. Craig also helped us reject a $174 million buyout offer in 1999—just six months before our valuation topped $2 billion. With his mastery of due diligence, price negotiation, and capital markets, Craig advised us through every pivotal move. Though not on our board, I spoke to him every day. His impact was profound.

Today, Raptor Partners announced recently that it will become part of Pittsburgh’s First National Bank. Craig will lead the bank’s investment banking arm.

Startups need more than innovation; they need structure, support, and smart financial partners. From angel investors to disciplined CFOs, dedicated bankers, and visionary advisors, Tollgrade succeeded because of the people who asked hard questions and made sure our numbers made sense. That’s how we stayed airborne.

Chris Allison, Co-Founder and CEO of Tollgrade Communications, Inc., teaches business at Allegheny College in Meadville, PA and is the author of the new book, Hit It!: A Tech Startup Story and Seven Rules For Entrepreneurs.