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An Investment Framework: Partnering with a Manager—PART 3

Managed syndicates: for startups

Why managed syndicates are better for Startups

~By Michael Schmanske

Folks, I’m going to keep this one short. Everyone should read the prior posting directed at the advantages of Managed Syndicates for Investors. This will focus on why it is better for startups.

For investors, let me just say “EarMuffs!!” I’m going to be talking about you the only way I know how—bluntly.

“Hey Company Founders, gather round” (drops to whisper).  Admit it, you really wish your investors would leave you alone most of the time.  Here is what you want from them:

  • To show up for the Q&A sessions
  • To talk about the company with friends and other investors
  • To sign on “the line which is dotted”
  • To make sure the wire clears…

Ok, that’s it.  Now sit down and be quiet and let us do our job.  And please do not keep me on the phone for an hour discussing your $10,000 investment.  I love you, really, but I’ve spent less time talking to my mom this month.  I don’t want to alienate you, I appreciate your faith and support.  It’s just that I’m really fracking busy trying to drive this company to …{Insert milestone here}.

I wish there was someone I could hand this off to.

A month later, this happens….

OOPS. I need some help! How do I parse through the many investors on my cap table to find the one or two individuals that can introduce us to…  {Insert introduction here}.  I’ll tap my board members and advisors, that is what they are there for, but in the end how large is that network?  

I wish I had a global group of engaged and investment savvy experts I could tap into.  Maybe they would know someone I can speak with.

I think you get the idea. Managed syndicates include both the investor relations interface and a speed dial to the largest expert clinician network in the world.  We should be charging more.

Investors, you can take your hands off of your ears now.  Mostly because we’ve moved on to the…

Operations and the ugly boring stuff

This is also known as the real work of a startup. When I launched my hedge fund and when I acquired a Broker Dealer for our Fintech startup, I spent hours on strategy and building stuff, but I spent an order of magnitude more time on nitty gritty operations details. Want to know why lawyers can charge by the hour? It is the only way to motivate anyone to do paperwork as a living.

AngelMD has launched these syndicates with an easy entry point. For $2,500 we’ll open a SPV at our administrator. We will advertise your funding round to our network and to the broader community via email marketing and social media campaigns. We will host and help you run two investor Q&A sessions. If you are successful in raising money we charge an additional $7,500 upon closing to set up the operations back-end.  If you would like a deep-dive readiness evaluation and clinical due diligence report we can arrange that for a reasonable fee. We will introduce you to a number of CAB members in your specialty and work together to find a great fit to be a new board director, advisor or observer.

Fill out the form (button below) if you are interested in launching a Managed Syndicate with AngelMD Capital and we will contact you.

Michael Schmanske is a 24-year Wall Street veteran with experience on trading desks and asset managers. He graduated with degrees in Aerospace Engineering from MIT and a Masters from Princeton University. Mike is the Managing Director for AngelMD Capital and runs research and Analytics at AngelMD where he is happy to exercise his inner nerd on a regular basis by supporting the most innovative entrepreneurs and cutting-edge medical startups.

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