Who Are Angel Investors and What Is Their Role?

Angel investors are wealthy individuals who use their personal wealth to invest in startups. They are typically people who have previously run startups or held a senior executive position and are now retired. Angel investors must meet certain requirements set forth by the Securities and Exchange Commission (SEC) in order to be allowed to invest: to get accreditation, an investor must have a net worth of $1 million (in addition to their primary residence) or have an annual income of at least $200,000, or $300,000 if married . Angel investors have begun to play a prominent role in healthcare as the medtech sector has been experiencing a marked downturn. Just in 2017, angel investors provided more than $23.9 billion in funding to all industries, which was a 12.9% rise from 2016; of the $23.9 billion in funding, 19% (or $4.5 billion) was invested in the healthcare industry (including the biotechnology and medical technology sectors), which was more than venture capital funding . Generally speaking, angel investors look for smaller markets that are potentially untapped by venture capitalists. In addition, they usually seek to invest in companies at earlier stages - at the seed or startup stage .

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