Tobin Arthur • December 13, 2017

The statistics are clear: fewer than 1 in 10 startups will succeed. Healthcare is even more complex; so that number is likely even lower. While innovation in any industry is challenging, healthcare holds a unique set of traits that demand a particular type of team to overcome. For the winners, the outcomes can be significant.

Facing the Giants

In addition to the normal hurdles to starting and growing a successful business, healthcare adds a lot of regulatory hurdles and comes with immense inertia. For those prepared to take the journey, it plays out as follows:

It starts with finding a unique idea. Is there a disruptive market opportunity? Can the status quo be replaced? Will the solution require overcoming regulatory hurdles? If so, this could lead to years of work and millions of dollars spent before the product ever hits the market. Who is going to finance these efforts, with the understanding that every step could kill the idea, and every day could change the window of opportunity?

It’s no surprise that securing funding for healthcare innovation is very difficult. Funding is difficult in any sector, but it can be managed.

Investing in Opportunity

Friends and family rounds often make up the early funding of a company. These folks know you. At this stage, they are betting more on the people than the idea. But beyond this stage, things get tougher and competition for capital is fierce.

At AngelMD, we know the marketplace for both investors and startups is inefficient. We knew we could build something better. Raising capital should not be an easy task, but it can be managed more systematically and efficiently than we see across the industry.

In order to meet those goals, we built AngelMD around the premise of “invest in what you know.” We have gathered physicians, scientists and other subject matter experts from every field of healthcare to help evaluate the companies in the network. We add seasoned investors to the mix to augment the entire process. The resulting formula mitigates risk for all. Then we organize investors into syndicates. There is power in numbers and syndicates are far more efficient for both startup and investor in the near and long-term.

For startups, we provide tools to help them tell their story and to generate interest. Once connected, potential investors will be kept up to date with every piece of information that the company adds to their profile. But that’s just the start. We believe firmly that savvy investors don’t predict winners, they create winners. To this end, the AngelMD is positioned to advise and support its portfolio companies all the way to exit. In fact, we work to help expedite those exits.

It takes a specific kind of person willing to take on the risk of building a company with no certainty of a positive outcome. Yet we work with thousands of entrepreneurs who are taking their shots. By improving the funding cycle, fostering open communication, and allowing experts to evaluate, invest and advise, AngelMD is improving outcomes and speeding up the process of getting the technology to market. And this ultimately serves the patient.

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