Category Archive For "Investing"
AngelMD is proud to announce its strategic alliance with The Rapacke Law Group. This alliance will help AngelMD members navigate the legal side of healthcare startups without the expense required to keep a lawyer on retainer. The Rapacke Law Group offers award-winning, price predictable legal counsel to AngelMD startups, physicians, and investors.
At AngelMD, we’re always excited when we find companies that can help to remove some of the heavy lifting required by startups, physicians, and investors on the network. The Rapacke Law Firm is offering a special set of benefits specifically to AngelMD members that will not only help them handle legal issues, but will also save them money in doing so.
- Free one-hour strategy session with an experienced attorney
- 20% off all legal services
- Free provisional patent application
- Up to $15k line of credit for one-year toward legal services
Patent, trademark, IP protection, business formation and M&A are areas of focus that every company and investor will encounter at some point on their journey. However, neither startups nor investors have the legal expertise to make sure that their interests are well protected. This strategic alliance with the Rapacke Law Group can help to cover these needs, while also offering legal counsel in many other areas.
For more information, or to get started, visit the AngelMD Service Partners page, and click on the Rapacke Law Group link.
Arthroscopy is one of the most common procedures performed in the United States (almost 5,000 per day), yet its underlying technology has not seen significant change since the first video arthroscope was introduced in the late 1970s. Indago is an Ohio-based company that is making surgery smarter by developing tools for a highly-efficient, tech-enabled surgical suite. The company’s first product, ArthroFree, is a generation-skipping endoscopic camera that eliminates the wires—and their associated risks and inefficiencies—holding back legacy systems.
Today, a group of AngelMD investors announces the completion of a syndicate funding round for Indago as part of the company’s $5.5 million Series A. The funds will be used to finalize development of ArthroFree, submit the device for FDA approval, staff up for market entry, and begin work on the next product in Indago’s portfolio.
“Working alongside AngelMD’s physician leaders to advocate for our vision of the operating room of the future has been remarkable,” said Indago co-founder and CEO Eugene Malinskiy. “We found both physician and non-physician champions at every event and webcast, and now we have a pool of likely first users, as well as knowledgeable resources for current and future products.”
ArthroFree eliminates expensive consumables, such as fiber optic cables, replacement light bulbs, and sterilization materials that are all required for the current systems. Furthermore, by removing the cables that tether all current arthroscopic cameras to the surgical tower, ArthroFree eliminates the associated trip and fall hazards, fire risks, and vectors for hospital-acquired infections.
“Indago is an innovative company which will revolutionize the world of arthroscopy in the operating room. This is a technological evolution that is long overdue,” said AngelMD Lead Investor Dr. Brian Parsley. “By untethering the arthroscopic hand piece from the light source and cable connections while maintaining high quality imagery and improving efficiency will be a game-changer in the industry. AngelMD gave me an opportunity to invest in this exciting new company and be a part of next wave of change in my operating area.”
Indago’s ArthroFree system has fewer components to set up versus the competition and is drop-in compatible with existing systems. This compatibility removes the need for new training, new workflows, or other disruptions to current processes.
Each quarter, AngelMD Premium members receive a full report that details what’s been happening in the world of private healthcare investment. This preview of the AngelMD Private Healthcare Investment Report is being provided to all members.
The State of Healthcare Funding
Our Q3 report comes from AngelMD’s individual evaluation of over 500 SEC Form D filings. We have eliminated filings that were not directly involved with healthcare, filings from large, public companies, and filings related to private equity buyouts.
The overall number of investments dropped from Q2 to Q3. However, the total amount of money raised grew significantly, and individual investment sizes averaged over 50 percent higher than in the previous quarter. Leaders in the segment were bio/pharma, medical device, and healthcare IT.
The top targeted specialties by amount raised gives some interesting insight into Q3’s market shift. While Oncology is always a top performer, it was eclipsed in Q3 by General Medicine, Genetics, Immunotherapy, and others. Both General Medicine and Genetics look to finish the year ahead of Oncology for total amount of money raised, while Cardiology and Vascular Surgery both enjoy solid investment numbers for the year to date.
The Rise of Bio/Pharma
After a down segment in Q2, Bio/Pharma startups had a strong showing in Q3. Focuses ran the gamut from pain management to pathology, with drug discovery and biotechnology leading the charge. Across all Bio/Pharma startups, nearly $2 billion was raised, while the median investment size increased by $900,000.
Dr. Jack Lewin has what he calls an overly-simplistic maxim when it comes to reaching his goals. As an investor, the Principal and Founder of the healthcare consulting group Lewin and Associates, and Chairman of the National Coalition on Health Care, Dr. Lewin has no shortage of responsibilities. That is perhaps why “clarity is power” is his general truth of conduct. As he says, “being clear about what you want to do is the first step toward getting it done.”
Dr. Lewin is presently serving as the Syndicate Leader for the investment round in HealthPals. We recently had a chance to catch up with him to talk about his investment philosophies, how he got started investing, and what excites him about the future.
What Got You Started Investing?
I like to promote ideas that I think represent the future of healthcare. I look for innovations that are needed to make healthcare more effective for coming generations. I look carefully at what’s happening in the environment and try to associate myself with, and put my energy into, new companies that are going to create positive change.
What Gets You Excited About an Investment?
The principles of the company are really exciting. A lot of it is the team, but beyond that I also look for people who already understand the value and potential of a company. I like when I see my friend Bob Harrington has decided that he wants to be part of something. He is the Chief of Medicine at Stanford, and the former head of Duke’s Cardiology Research Institute. When he’s there you know something really amazing is happening.
What Attributes Do You Look for in a Founder?
I like to see founders who really want to make a difference. You can feel that passion. It’s more than saying “I want to get rich.” I also want to see the passion that they’ve generated in the people around them about the potential for their product.
That’s part of what is fascinating about HealthPals. We’re living in this era where it has become cliche to talk about providing better outcomes and decreased cost. This company really contributes to those things, and not as a cliche.
What Have You Learned that You Wish You Knew Earlier?
Follow your own passions. Work on what you want to see happen in healthcare, and even beyond healthcare in areas like health information technology. Put your money and energy into something that you believe could produce better health, better healthcare, or lower costs. That not only feels good, but it does good. It’s contributing to the improvement in the health of the population.
What Three Things Get You Excited?
The long-anticipated idea of interoperability. It looms as one of the biggest areas of potential contribution. The potential exists, but there are all kinds of human barriers — proprietary data, privacy breach fears, a certain sense that there is no way to create pure interoperability in the same way that we have made it work in banking and finance. It can work. Privacy can be protected. Proprietary concerns are barriers to thinking about and building a more successful economy in healthcare.
I’m also excited about advanced analytics, or artificial intelligence as it’s called. I like seeing companies that apply AI to things other than search engines or financial tools. Applying it to healthcare is going to really transform the future of our industry. HealthPals is on the cutting edge of that transformation.
Finally, I get excited about new therapeutic options which seem like long shots or like science fiction. Occasionally I come across something that is relevant to the future. Thinking of my experience at the American College of Cardiology, when my tenure was beginning, we weren’t thinking that we would be able to replace heart valves using catheter-based therapy. A procedure where we wouldn’t have to crack the chest, and don’t have to use general anesthesia. In some case we can even send the patient home the same day. Creating a heart valve that comes out of a catheter, opens itself up, and can embed itself and just function? That sounds like science fiction. Ideas like that are worth exploring, and we’re starting to see a lot more of them.
That’s part of why I’m so interested in HealthPals. It fits all of my exciting areas. It’s really a leap in terms of how that information gets used. It employs a relationship with the National Cardiovascular Data Registry. I had the privilege of helping to found, promote, and turn the NCDR into a national resource during my time at the ACC. The NCDR has an impact on improving outcomes in the inpatient setting. The retrospective analysis of data can be turned into a means of advising and helping patients right at the point of care.
To a certain extent, HealthPals represents virtual research in action. Looking back at the NCDR and hundreds of millions of patient records, a clinician can advise a patient about what happens to the thousands of people who present with the same constellation of clinical and demographic factors that they have. It’s almost a means for the doctor and the patient to decide together what course of action to take based on real data and experiences.
In the United States, roughly one out of every three babies born in the United States are delivered via cesarean section. According to key stakeholders, nearly half of these c-section deliveries are medically unnecessary. These major surgeries carry risks such as postpartum hemorrhage, rupture of the uterus, cardiac arrest, infection, complications from anesthesia, and much more.
Raydiant Oximetry, Inc. is a California-based company that has developed a safe and noninvasive technology that directly monitors a baby’s oxygenation during pregnancy. For clinicians who are dissatisfied with the lack of tools available to assess the baby during childbirth, this technology will lead to improved decision making and better care to mother and baby. Today, the company is announcing that it has been awarded Breakthrough Device status by the Food and Drug Administration (FDA).
“The FDA’s approval for a Breakthrough Medical Device status is an incredible validation for the work that we are doing,” said Raydiant Oximetry CEO Dr. Neil P. Ray. “Not only does it accelerate the path towards FDA approval, it’s also a public health validation that what we have been developing is a global priority for the health of mothers and babies.”
The FDA’s Breakthrough program is targeted towards medical devices that address significant unmet clinical needs. It provides an expedited pathway to approval for market access. This pathway affords the sponsor a priority review with senior personnel and less pre-market clinical data for expedited approval.
“It is baffling that the public outcry over our current c-section rate isn’t louder than it is,” said AngelMD Lead Investor Dr. Wendy Whittington. “Raydiant’s new breakthrough status confirms that safe, effective tools to give doctors better information about in utero well being are necessary and timely. Tools to enable doing the right thing are welcome and necessary in this pivotal time for our healthcare system.”
AngelMD announced in September 2018 that a group of its investors had completed a funding round in Raydiant Oximetry. The company is now working on building its next generation prototype, to improve accuracy and reliability, which is slated for completion in February of 2019.