Entries Published On July, 2013
On behalf of the team at AngelMD I want to welcome you to an investment platform where doctors and dentists are matched with medical startups in their areas of expertise and interest.
Crowd investing is going to dramatically change the landscape of the investment world. Historically less than 10% of accredited investors make private investments. The time and minimum buy-ins involved are just a few of the reasons they sit on the side-line with their capital. The investment landscape is shifting dramatically as a result of events like the JOBS Act, the success of crowd-funding sites like Kickstarter and a growing interest among investors in considering startup investments for their portfolios. I remember just a few years ago hearing investors tell me they didn’t consider startup investments because they preferred so called “safe havens” like real estate, banks and mortgage-backed securities. Risk is relative.
Our team knows first-hand that physicians are the best early investors in medical startups. Like all of us, when physicians invest in what they know, the odds are shifted in their favor. They understand the medical landscape and can make assessments about the relative merit of a product or service. Meanwhile, medical startups face a particularly daunting challenge when raising capital. Institutional investors are moving further upstream to growth capital or they may not be an appropriate fit for other reasons. Typical angel investors without a healthcare background are reluctant to invest in a complex field where they are unequipped to effectively assess risk. Aggregating physician investors to pool meaningful capital is extremely time-consuming and can become the Founder’s full time job for years on end.
Our mission is to solve this gap.
We want angelMD to be a rewarding and enjoyable experience for doctors, enabling them to research and stay abreast of startups in a more efficient process than can be achieved travelling the exhibit halls at the next society conference. In some cases the connections with startups may lead to becoming an advisor or beta user. And of course we intend to periodically present our users with filtered investment opportunities.
Likewise, we expect the site to be of great benefit to medical startups that value visibility with a nationwide network of physicians; and for some companies this network will become a valuable source of seed capital. We expect the funding range to span from $500,000 to $5M. In many cases companies will have raised some initial capital and need their next stage of funding prior to institutional investment. In cases where physicians have already invested, those physicians will be the best sponsors and advocates for the companies on angelMD. In other cases we will work alongside funding groups looking to augment their capability to achieve the capital needs of a company.
Sign up and we’ll keep you informed of major releases in the coming weeks and months. We have lots in store, but we’d love your feedback and ideas.
To medical innovation….
Tobin Arthur, CEO