New AHA board chairperson driven to improve health care

On a typical Sunday morning, Lee Shapiro will take an online class with his wife, Valerie Shapiro, then spend much of the afternoon on his favorite pastime.

Although he's an avid sports fan and has run 18 marathons — including the prestigious Boston Marathon — the activity has nothing to do with any of that.

And while their youngest son is a professional jazz musician, motivating Lee and Valerie to listen to plenty of jazz and watch music documentaries, those are the wrong lanes, too.

Lee's big escape when he's away from work … well, it looks a lot like his work.

He loves spending time meeting with founders of businesses located at the intersection of health care and technology. On the phone or in person, he savors the opportunity to get to know them and their ideas. He delights in passing along advice and connections from his 30-plus years in the sector.

His day job is awfully similar. As the co-founder and partner of 7wire Ventures, and in leadership roles at companies the firm has invested in, Shapiro has consistently helped turn ideas into successful businesses that improve people's health.

About a dozen years ago, he brought his insight to the American Heart Association. His prescience and personality have been so well received that he's quickly moved up the volunteer hierarchy. On July 1, he reached the pinnacle for a nonscience volunteer, beginning a two-year term as chairperson of the board of directors.

"Lee's track record of success in his career, combined with the care and diligence he's shown as a member of our board, make him a perfect fit for this important role," American Heart Association Chief Executive Officer Nancy Brown said. "We're in good hands as we continue building the momentum of the start of our second century."

Graduate of 'Syd Jerome University'

Shapiro spent his formative years attending what he likes to call Syd Jerome University.

Never heard of it?

Syd Jerome is actually the men's clothing store his father started in Chicago in 1958. The name was a gussied-up version of the names of his father, Sid, and his father's then-business partner, Jerry.

Sid's parents both died by the time he was 16. He lived with an aunt, then some cousins, until getting drafted into the military. Once out, while putting himself through night school, he and Jerry opened a storefront selling accessories. Unable to afford the inventory, they sold suits on consignment. Their sense of fashion and expertise in tailoring earned a reputation that enabled them to grow their business.

Lee was 2 when Syd Jerome opened.

By 5, Lee was spraying the sides of the counters and wiping them clean. He was so excited when he grew tall enough to clean the tops, too.

Sid did well enough to open a second location. Lee spent every weekend and school vacations as a runner, delivering inventory from store to store; they were about three blocks apart. If it was cold or wet, Lee would cut through a bank that filled an entire block. He made the trek so often "that I got to know the police who worked every corner near the stores."

Lee loved the pace, the camaraderie and — most of all — spending time with his dad.

Observing him, too.

Lee saw how Sid treated customers. How he listened to them. How he'd go on buying trips and bring back specific fabrics or patterns that he knew certain people wanted. Lee saw how Sid's personal touch was more important than any coat, shirt or tie.

Sid's clientele eventually included famous politicians, entertainers and businessmen. He was dubbed "the Haberdasher to the Stars." Esquire hailed Syd Jerome for quality and customer care.

Lee — the oldest of Sid's three children, all sons — was very proud of it all. He just wanted something different for himself.

Instead of a career in retail, he headed to the University of Illinois aiming to practice law. He ended up majoring in accounting and getting certified as a CPA on his way to passing the bar. He combined those skills to practice business law with a firm in Chicago.

One of his clients developed shopping centers in the Midwest. After Lee joined that firm, the enterprise had the opportunity to expand into California, starting what he likes to call "an 11-year vacation because it was so beautiful to live in the San Diego area." When the Shapiros moved west, they had a 1-year-old son. Another son and a daughter were born while living in California.

Meanwhile, on the side, Shapiro had begun dabbling in early-stage investing with a friend, Glen Tullman.

Better tech, better health care

At first, Shapiro and Tullman relied on word of mouth to connect to people starting businesses.

They had little money to invest. However, they were generous with their time and insight — Shapiro on legal matters, Tullman on sales.

This was the late 1980s and early 1990s, before the internet was mainstream. So they were somewhat visionary in what they chose as their investing niche: Companies that use software, computers and other tech tools to address broken business processes.

Then they found their niche within that niche: health care.

It started when Tullman became CEO of Enterprise Systems, then a private health care company. He took the company public.

A few years later, in 1999, the Shapiros moved back to Chicago for Lee to assume a new role in real estate. He then joined Tullman at another health care company he'd taken public, Allscripts Healthcare Solutions.

Together, they steered Allscripts through the dot-com boom, the bust and the aftermath. Along the way, Lee oversaw roughly $3 billion in mergers and acquisitions. In 2013, Shapiro and Tullman left Allscripts and devoted their attention to their investing through the vehicle now known as 7wire Ventures. They were no longer small-timers, with investors including health plans, health systems, life sciences companies and high-net-worth backers.

(The name "7wire" is an homage to the seven copper wires that composed the first transatlantic cable — which, by connecting North America and Europe, launched a new era of trade and prosperity. "We believe that if you can connect and communicate with one another, you can transform relationships to create value," Shapiro said.)

Their approach at 7wire Ventures is unique — not only choosing to partner with great founders, but also "hatching" iconic companies. One of them is Livongo Health. Tullman held the reins as chairman and, for almost four years, CEO. Shapiro stepped in as CFO in 2018.

This is a good time to get into the specifics of their companies.

Enterprise and Allscripts each used technology to streamline aspects of health care inside the four walls of a hospital or doctor's office. For instance, Enterprise's software helped manage the supply chain. Allscripts' software introduced electronic prescribing and was an early leader in electronic health records.

However, Shapiro and Tullman had a different vision. Rather than an end goal of helping incumbent health care providers deliver care more efficiently, they wanted to invest in companies that helped people remain healthy — and avoid unnecessary trips to the doctor or ER.

Livongo Health was of that ilk. Its signature product was a "smart" glucometer, the device that helps people with diabetes monitor their blood sugar. This was especially meaningful to Tullman, whose son has Type 1 diabetes.

They took Livongo public in 2019. In 2020, it merged with Teladoc Health in an $18.5 billion transaction that remains the largest in the digital health sector.

7wire continues to seek founders with lived experiences that motivate them to change the status quo — to solve meaningful problems that, once solved, can help many. It also helps if founders are coachable, resilient and show perseverance.

Once Shapiro invests in a company, he takes pleasure in helping steer it to success. That's why in the past few years he's served as a board member for more than a dozen companies. A few examples: Override Health, which helps those with chronic pain to live better lives; FOLX Health, which provides compassionate physical and mental health for the LGBTQ+ community; Jasper Health, a companion from a cancer diagnosis to, ideally, remission; and Payzen, an affordability solution that allows people to pay for care they might avoid if it was too expensive.

"Our fund probably looks at 1,500 to 2,000 companies a year and we only invest in a handful," he said. "I honestly love the time that I spend talking to founders, hearing about their dreams and building businesses and helping them solve the problems they're facing.

"For many of those conversations, I'll introduce them to people we know at another fund or maybe to a potential customer. If I have a superpower, it's probably something that I learned the importance of from my dad: relationships. So, I honestly don't think of it as work."

Like a parent who would never name a favorite child, Shapiro refused to name a favorite investment. Still, he mentioned another company they hatched where Tullman joined as the founding CEO, and Shapiro has been a board member since inception — Transcarent, which helps people get access to the right care at the right price from proven, quality providers.

"Health care is too complex, costly and confusing for too many people," he said. "Transcarent is a beacon in the dark."

Transcarent was valued below $20 million when 7wire invested in it. It's now valued at upwards of $4 billion.

Supporting the American Heart Association

Sid Shapiro lived to be 86, which meant he got to enjoy seeing Lee's success. Alas, it also meant he dealt with various health problems common among older people, such as atrial fibrillation and congestive heart failure, before dying in 2018.

For many years, Lee's mom, Cissie Shapiro, endured significant health problems. They included a heart valve issue that left her very weak before she died in 2020.

Then there's Lee's mother-in-law (Valerie's mom), Rachel Besser. She had an emergency triple bypass in 1999. About a decade later, she received an artificial heart valve and a pacemaker. She died in 2019, but Valerie credits the American Heart Association for extending Besser's life by 20 years.

Yet Lee's devotion to the organization dates back further.

It began early in his career, when his various companies sponsored teams in Heart Walks and bought tables for Heart Balls.

The big change came in 2012.

Shapiro was president of Allscripts when he joined the Qualcomm Life Advisory Council, a group of 25 people looking at issues regarding the wireless health industry. Also joining that group: Nancy Brown, CEO of the American Heart Association.

Each was impressed with the other. Soon, Shapiro began helping the association with some strategic planning. He then joined the organization's national board. From there, he chaired the audit committee, then became treasurer.

"I didn't realize that I was on the track to be chair," he said. "So, when I was asked, it was quite the honor."

His devotion starts with his belief in the mission. He's also bonded with fellow board members, association leaders and other staff members.

"It doesn't feel like volunteering because I get so much out of it." he said.

He also enjoys attending Scientific Sessions, the organization's flagship science conference. Among his favorite events there is the annual gathering of AHA Scholars, students from undergraduates to doctoral level, many from under-resourced communities, all planning for careers in medicine or research.

"Meeting them and hearing their stories, being able to understand a bit about their own experiences, is so rewarding," he said.

Lee and Valerie have further shown their commitment to the organization by chairing the Chicago Heart Ball, leading it to become the association's top fundraiser of its kind in the country, and spearheading the "Millions for Moms" campaign, making May, the month of Mother's Day, a focal point in fundraising for the American Heart Association. Their gift, along with the generosity of the Tullman Family Foundation and others, supports women's heart health.

Last June, the American Heart Association celebrated its 100th birthday at the site of its founding: the Drake Hotel in Chicago, also Lee's hometown.

The event was held right around the time he learned he'd become chairman during the organization's 101st and 102nd years.

"Seeing the excitement of what we have achieved — and the impact on so many lives for so many years — was so inspiring," he said. "I'm confident we will continue on the path of being a relevant force for good for the next 100 years."