Angel Investors

Conclusion

In this chapter we discussed another common route of funding: angel investors. These are wealthy individuals who use their personal wealth to invest in startups, and they have started to play a major role in financing healthcare and medtech startups in recent years. Angel investors are willing to take on more risk than other investors as they typically invest in earlier-stage startup companies. For this reason, it is vital to find investors whose goals are aligned with the company's and who can potentially add value as the company grows. However, this paradigm has been shifting in recent years as angel investors have begun partnering with venture capitalists and crowdfunding platforms to gain access to later-stage startup companies as well. Though angel investors are likely to take little to no equity in the company (in order to maintain the valuation of the company for later rounds of funding), they will often want board representation; because companies might need multiple angel investors, juggling the expectations of all of them may become challenging. To get funding from angel investors, there are some key points the business pitch should cover: concept, market size/growth, management team, business model, exit scenario, and valuation.