Entries Published On March, 2019
As we discussed in a recent blog post, naming your company can be one of the biggest, early challenges. But long before you settle on a name, you first need to find an area where the market could use a better answer. This is the same process that we went through as we founded AngelMD. In this post, the first in a series, we will examine one of the macro-level trends that helped form the thesis of our business.
Digital technologies have transformed a multitude of analog industries that Americans rely on daily. We skip teller lines by banking online, conducting transactions on our mobile devices and securing cash across a connected a globally-connected network of ATMs. We avoid travel agents by shopping for tickets online, bypassing security lines with fingerprint scans and boarding planes with barcodes on our phones. We eschew stock brokers to make stock trades on our mobile devices while managing our 401K online via access to a wide range of investment options.
With all of this progress, why haven’t angel and early-stage investing followed suit? Angel and early-stage investing are processes that continue to rely on analog methods, with deal flow localized to limited geographies.
AngelMD is transforming angel and early-stage investing. We are doing this by building a digital platform that brings scale and efficiency to this neglected investment category. The goal of this multi-sided market is to source, finance, and support the world’s leading healthcare innovations. We accomplish this goal by driving healthy returns for investors, successful outcomes for entrepreneurs and industry, and ensuring that patients receive the most effective new advancements possible.
AngelMD is the online community for physicians to connect with their peers to identify, evaluate, invest, and advise healthcare startups. The 42 investments made by AngelMD thus far were sourced by physicians on the platform. No longer are physician/investors limited to healthcare innovations from locally-circulated business plans. The funnel of startups on the network is curated for potential investment by online scoring tools completed by physicians and experts.
Physicians and accredited investors have participated in 29 funding syndicates or as limited partners in the 13 investments made by the AngelMD Catalyst fund. The online community has finally become a platform for physicians to learn about early-stage investing while growing their business skills and professional networks.
Startups are able to digitally promote their company across the ten thousand plus members on the network. They are able to validate the fit and finish of their product via surveys pushed to physicians in the AngelMD community. The best companies receive funding with a single item on their cap table from the AngelMD network. Finally, companies are able to leverage the network for advice on how to best grow their companies.
Industry merger and acquisition teams also benefit from early deal flow becoming digital. They can measure and test out physician affinity for new product categories. The digital platform allows potential acquiring companies to test, within the AngelMD network, the choices that they are making when it comes to spending their generational cash reserves. In summary, industry players will bring efficiency to their M&A teams by subscribing to the AngelMD platform.
Fundamentally, AngelMD is a technology company focused on transforming early-stage investing much like technology has disrupted other analog industries. Our roots in Seattle allowed us to benefit from watching Amazon transform shopping, Expedia change travel, and Zillow provide transparency to real estate values. Our vision as a business is to redefine and own the global healthcare investment ecosystem.
In our next article, we will discuss the power of crowds as it relates to investing. Ready to get started? Become a member of AngelMD and join our journey.