Entries Published On November, 2018
When Robinhood burst on the scene 5 years ago the ability to trade stock with no fees attached was semi miraculous. That innovation helped drive what today is a startup valued at $5B. Recently, the WSJ dug into the business model and revealed how they are able to thrive while taking no fees.
The fact of the matter is they are taking fees…just not from their trading customers. They are selling those trades on the back end to four high-frequency trading shops. Of course this begs the question as to why those shops would pay for those trades. And this is where it gets interesting. The answer: DATA
I was listening to Tim Ferris interview the CEO of Walmart this week. On the podcast the CEO described Walmart as an increasingly data and technology-driven company. Data is vital to every industry and is the underpinning of AngelMD.
While AngelMD has a long way to go, in the early stages we are aggregating intelligence from our network of physicians and healthcare insiders. We use that intelligence to guide our investment decision making. As we evolve, the data sets will continue to grow and so to will our reliance on this intelligence to give our members an edge in early stage investing.
The following blog post was written by Dr. Robert Teague. Dr. Teague is an AngelMD Regional Medical Director in the Austin, Texas area. Make sure to follow Dr. Teague on AngelMD.
Physician investors have often found themselves struggling to navigate the byzantine and risky world of startup investing. AngelMD brings a new dimension in advancing medical and healthcare innovation with physician domain and financial leadership.
In the world of healthcare startups, complexity prevails, innovation flounders, and patients often lose. One of the main reasons for these issues is the difficulty of investing in new healthcare companies. Many Angel investors do not have the necessary understanding of regulatory pathways, time to market, and other factors that are specific to healthcare. Physicians have a built in capability of assessing these issues, but needed a systematic way to participate with reasonable risk mitigation.
The 2012 JOBS act changed the rules around investing, and the SEC’s 2015 adoption of equity crowdfunding opened the door to physicians who wanted to invest in the future of healthcare.
With these rules in place, AngelMD began executing a vision to accelerate funding of early stage companies and empowering the expertise of professionals to apply smart capital to the equation. AngelMD has developed a highly curated and specialized platform that leverages the wisdom of the crowd and it focuses exclusively on health technology, device and biopharma. The platform includes assessment tools that identify success factors for early stage health tech companies in order to reduce the risk of investing.
Leveraging their physician members across the country and across specialties, AngelMD has an unprecedented capability to enlist physicians in the technical assessment and support of early stage companies with important and novel technologies. Physician excitement and engagement in this activity is palpable. Physicians are back in the innovation loop and their voice is being heard! Physicians members of AngelMD are leading future technology introduction that will improve outcomes for patients everywhere.
Not only have physicians found an Angel, so have startups, other investors, and most of all, those whose health improves from these advancements.