Startups listed on the angelMD network must be medical startups that have a product or a product enabled service. They must be a legally formed company. Concept stage and pure consulting businesses are not a fit. (medical practices are not eligible) Companies can be focused on health IT (digital health, mHealth, etc), medical device, biotechnology, genetics or pharma/therapeutics and must select one primary category in which they best fit.
Raising capital on angelMD is a very efficient way to raise early stage capital and ensures you have investors with strongly aligned interests.
There are two types of updates for startups on angelMD -
Private: private updates are submitted using the update tool from one's account. These updates are only visible to registered members of angelMD. This means that funding updates may be submitted and they will not violate general solicitation rules.
Public: public updates include information that you want to share with anyone to build your story, thought leadership and demonstrate progress. These include updates about product enhancements, regulatory or trial progress, significant additions to the team, completed financings, new customers signed or any other major news.
When you have major news of these types, email the information to updates at angelmd dot co. The angelMD team will consider sharing this information over the angelMD blog, on the weekly startup newsletter, through our monthly investor newsletter and through our social media system.
There are currently two ways to raise money on angelMD.
The first is to indicate in your profile that you have an open funding round and are looking for investors. Members of angelMD who find your company compelling are given the ability to connect directly. Startups are not able to solicit investors.
The second way to raise capital is called syndicates and has is two variations. The first is an informal syndicate which is earmarked for raises under $500K. While it does not require a technical lead, it does require one or more sophisticated investors to already be involved. These investors serve as a key validation. The second variation of syndicates is designed for raises of $500K+ and requires a lead investor who evaluates, prices and manages the syndicate/LLC.
Members of angelMD interested in participating in a syndicate deal invest in an LLC specifically created for the company raising capital and the LLC in turn becomes a single investor in said company.
Only companies have demonstrated clear value and distinction within the angelMD network are eligible for syndicate funding and within that body there is a queue.
Having a company profile approved and listed on angelMD does not in any way mean a company has formally started raising capital...which would then not trigger any associated reporting requirements. Once a company is registered and past the "provisional" stage they are eligible to be "scored." Only companies scoring in the top 10 percentile within the network are eligible for syndicate funding. Eligible and interested companies are placed into a queue for syndicate funding.
Company founders or executives register on the site and once they verify their account they may begin building a profile for their company. The process takes most companies 15-30 minutes. Company founders or executives should visit www.angelmd.co to create an account and then begin creating a company profile. Once the profile is complete and submitted, it will take one to two days for approval to go live on the site assuming all eligibility requirements have been met and the profile is complete.
First, companies must apply for funding consideration. Not all companies on angelMD are currently looking for capital. If you don’t see an “Apply for Funding” button on your startup profile page then we are not considering additional companies in the current month.
Once you have applied, we will give priority consideration to companies that have demonstrated an ability to hit milestones and create momentum. We provide a valuable promotion platform and companies that demonstrate an understanding of how to build momentum are going to be successful engaging our physician investors.
We will evaluate all companies that apply for a given month’s funding cycle and we get quickly to “yes” or “no.” and notify you in real time of a decision. Once we select companies that we will fund in a given month, there is a packaging process that takes approximately 2 weeks.
Companies not selected to be packaged and presented by angelMD are welcome to develop individual interest from our physician network. We do not have to be party to most of the connections being made on our network whether for funding, lining up advisors, early adopters or KOLs.
Lets start at the beginning. Once a company registers, their profile is reviewed for applicability and completeness before its published. Once a company is published they enter our "provisional" stage in which they must demonstrate some minimal effort toward building their story. In order for companies to successfully raise capital they have to be able to tell a compelling story and follow some minimal direction. The provisional stage can take a few days or a few weeks depending entirely on the company. Details of the provisional requirements are available in a separate FAQ and communicated to each startup upon registration.
Once a company has passed the provisional process they are eligible to be "scored." This process requires significant investment of time by angelMD and its physician network which is why we only score companies that have passed the provisional steps. Scoring takes one week and only companies scoring in the top 10 percentile within the network are eligible for syndicate funding. (note: all companies that have passed the provisional stage may post open investment rounds in which investors on the network are able to reach out and participate directly. angelMD does not need to be party to these individual investment transactions.)
Companies approved for syndicate funding go through a 30 day preparation/packaging process and funding takes 30 days or less from there.
Valuations are determined between a startup and the lead investor(s) for their syndicate.
Only once a company is chosen for syndicate funding do we ask for standard investment related information…financial forecasts, executive summary, slide deck etc. These are not divulged to anyone outside of the angelMD team.
Once the syndication investment event begins potential investors from the network express interest which generates a notification to the startup. The company must approve release of investment materials for each potential investor….so the startup controls who has access to their information and can track accordingly.
In most cases the investor in a company will be an LLC created specifically to aggregate the angelMD investment group. Companies are given the opportunity to approve individual members of an LLC.
Most angel investors are “silent” participants, but angelMD facilitates communication which includes the opportunity for investors to provide assistance as needed.
You can set the maximum.
This is handled on a case-by-case basis but is generally consistent with the standard deal terms being utilized in Silicon Valley Seed/Series A deals.
angelMD is being developed so that it can fill the complete funding lifecycle needs of many startups. That said, the angelMD investor base consists of seasoned healthcare investors, including physician SMEs, and as such are a positive addition for later stage investors.
There is no cost to be listed on the angelMD network.
Startup executives and founders are required to have a LinkedIn account to register on angelMD. Using LinkedIn for federated log in serves two purposes. First, it’s one less log in credential team members have to remember. Second, it leverages the source that has become the standard for professional profiles. This prevents having to create yet another profile and assets like profile pictures are automatically pulled into your company listing.
Anyone you want listed as part of your team must have a LinkedIn Account.
When the startup executive or founder lists a team member, medical advisor or investor in their company profile, an email will be sent to that person asking them to verify that they are affiliated with the company. For a full user profile to appear, non-physicians will need to respond to that email by signing in via LinkedIn. Physicians may sign in via Doximity or register with angelMD. Non-physicians who choose not to sign in via LinkedIn will display only limited information.
Startup team members, medical advisors and investors will receive an email asking them to verify their team membership by using their LinkedIn email address. If they do not verify and subsequently log in with a LinkedIn email address, their profile image will not appear. Startup executive/founders will also need to use their LinkedIn email address when they register in order for their image to appear on their company profile.
Yes. angelMD remains under the old Rule 506(b) in our own fundraising and we advocate that all startups in our ecosystem do the same. General Solicitation sounds useful on face value, but the requirement to do added verification of a person’s accredited investor status, among other restrictions, does not outweigh the theoretical benefits of broadcasting one’s offering. angelMD is for accredited investors only and only members of our network are shown deal opportunities.
While we take advantage of the media attention around the JOBs Act, it should be known that we could have done what we are doing at any time in the past 80 years from a securities rules perspective. angelMD remains under Rule 506(b) in our own fundraising and we advocate that all startups in our ecosystem do the same. General Solicitation sounds useful on face value, but the requirement to do added verification of a person's accredited investor status, among other restrictions, does not outweigh the theoretical benefits of broadcasting one's offering. angelMD is for accredited investors only and only members of our network are shown deal opportunities.