StartUp Health, a global startup platform accelerating innovation in health and wellness has launched the first syndicate on AngelList focused exclusively on healthcare. The StartUp Health Syndicate features investment opportunities from StartUp Health Academy, a global, long-term coaching program and peer network that focuses on increasing the equity value of its startups.
What is A Syndicate?
A syndicate allows investors to co-invest with other notable investors. People who back a notable investor’s syndicate commit to invest in their future deals, and agree to pay them carry (carried interest), a percentage of the profit of a fund. For example, if a StartUp Health company exit returns a profit for investors the syndicate lead receives a percentage of the profits paid to their backers.
Syndicate investors don’t invest directly in the company but a special purpose vehicle LLC that is created for each specific investment. The fund is managed by Assure Fund Management and advised by the lead and AngelList Advisors, LLC, a wholly-owned subsidiary of AngelList.
How It Works
StartUp Health syndicates deals with select StartUp Health companies that have met specific criteria which stems from their 10x Equity Value Drivers that they use to coach entrepreneurs. StartUp Health is directly aligned with their backers and hold 2-10% equity in each company through their participation in StartUp Health Academy (and have other additional rights pursuant to the agreement).
Startup Health does not invest directly or take a carry (AngelList receives a 5% carry) in the deals that are syndicated. All StartUp Health Syndicate deals have received commitments for at least 50% of their round, with at least 20% of the round from a notable institutional or angel investor, who has negotiated or agreed to the terms of the deal.
Syndicate Company Guidelines
Only StartUp Health companies that meet the following guidelines will be syndicated:
LEADERSHIP
– Backable Leadership Team
– Notable Advisors & Coaches
– Support from Peer Network
POSITION
– Articulate Vision and Great Design
– Unique Value in Growth Subsector
TRACTION
– Accelerating Revenue / Users
– Sustainable Business Model
– Scalable Platform / Product
CAPITALIZATION
– Sufficient Cash Runway
– Improving Margins / Earnings Potential
To date, 84 StartUp Health companies from 7 countries and more than 45 cities, have cumulatively raised $150M in funding with 3 companies acquired in the last year – Basis Science by Intel, Avado by WebMD and Arpeggi by Gene by Gene. For more information, visit https://angel.co/startup-health/syndicate
