From why they should sign up, to how long it takes to start investing, we’re always answering questions from people who are not yet on the AngelMD network. As you’ve likely seen, we have the five steps to investing on AngelMD listed in our For Investors page. But we thought it was worthwhile to take a little time to talk about each of them and why they work the way that they do. So come along and let’s get started investing in the future of healthcare.
Create Your Account
People often ask what benefits they’ll get to having an account on AngelMD. While there are a lot of points that are worth covering, we want to focus on just a few this time.
First and foremost, having an active, updated account on AngelMD allows you to follow and express interest in advising or leading syndicates for companies. When you have an account that lists your interests, we’re able to provide you a list of companies tailored to them, and it helps others to find you as well. Further, when you tell us where you live, we’ll keep you updated on events in your area that you’ll find interesting.
Signing up is fast and free. Oh, we hate spam as much as you do so we promise that we’ll never do it.
Not every company on AngelMD is looking for investors all the time. We do highlight the companies who are actively raising syndicates on AngelMD, but many other companies are looking for advisors and mentors, or they just want to keep the world updated on what they’re doing.
When you do find a company looking for investment (they’ll show up first in the Browse Startups page), you’ll want to take a look at their company profile, as well as their investment page. Some of the information will be the same, but the investment page has specific details that you won’t find anywhere else along with the Definitive Documents for the investment.
You’ll notice that there are three ways that you can invest on AngelMD:
- AngelMD-Led Syndicates: Heavily-vetted companies, with a Syndicate Leader who has intimate information about the specialty.
- Open Syndicates: Vetted, but not led by AngelMD.
- Open Rounds: Individual investments that are not powered by a Syndicate.
A quick note on Syndicates versus Rounds. Syndicates are formed by a group of investors, acting as a single entity. This entity invests in the funding round, and has more bargaining power than a single investor might. Investment opportunities listed as Rounds mean that they do not have a Syndicate Leader, and there is an opportunity for an investor to create a Syndicate investment with other accredited investors, drawing on the expertise of the group.
Review the Opportunity
Joining a Syndicate is simple. Just click on the Invest button in the Company Profile. Next you’ll want to spend a few minutes looking over the information in the Research section. This includes the term sheet, pitch deck, an executive summary of the company, and a Private Placement Memorandum that describes the opportunity, and explains the potential risks of investing. Once you’ve done your research, click Continue to Invest and you’ll be taken to the next steps.
We have partnered with PrimeTrust to make the transfer process really simple. You’ll provide your name and email, how you’re investing, how much you want to invest, and you’ll decide how you want to send funds. Once that’s done, you will receive either Wiring Instructions or an address to mail the check, and PrimeTrust handles all of the heavy lifting of processing your investment. VerifyInvestor will make certain that you are an accredited investor.
All investors on AngelMD must be accredited (meaning an annual income of $200k+ [$300k for a family] for the past two years, or a net worth of over $1 million not including the value of your primary residence). This process is pretty simple, but it’s important. Part of the power of investing via AngelMD comes from having a large group of investors. Making sure that all of these investors are accredited means a lower overall level of risk for everyone involved in the process.
Accreditation is handled by a third party, called VerifyInvestor. They handle all of the information gathering, and there’s no cost to you. Just make sure to send VerifyInvestor the requested documents and you’ll make short work of the accreditation process.
No really. That’s all it takes to start investing through AngelMD. We’ve put a lot of work into every aspect of the process, including partnering with companies like PrimteTrust and VerifyInvestor that are the absolute best at what they do. The end result is that you can go from first hearing about AngelMD to investing in your first Syndicate round in as little as 15 minutes.
Still have questions? Interested in learning how to invest via your Self-Directed Retirement Account? We’re happy to answer them for you. Just drop us an email and a member of the AngelMD team will get in touch with you. If your questions are answered, start finding your first deal. We look forward to seeing your name in our fast-growing network.
Find the best in healthcare innovation. Join AngelMD today.
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