Process

A Data-Driven Approach to Smart Investing

Each quarter, we vet startups through a structured process: pitch screening, SWOT analysis, clinical data review, and unit economics modeling—leading to live pitch events for member investors.

Funding Eligibility

Fundraising Criteria

We invest in early-stage startups with:

A strong founding team
A scalable business model
A clear regulatory and reimbursement pathway
High-impact healthcare solutions

Our Due-Diligence Process

Our Investment Process Includes

Market Analysis

Assessing TAM, competitors, and barriers to entry.

Clinical & Regulatory Review

Evaluating FDA pathways, CPT codes, and reimbursement structures.

Group of people working out business plan in an office

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Financial Projections

Analyzing unit economics, burn rate, and capital structure.

Strategic Fit

Ensuring alignment with MD Angels' expertise and vision.

Benefits

Benefits of Joining MD Angels

No need to manage deal structures or tax complexities.

Access to angel investment tax credits

Illinois Department of Commerce & Economic Opportunity

Angels Receive 25% Tax Credit on ALL Investments

We structure portfolio companies as “Qualified New Business Ventures”
We recognize the MD Angels investment vehicle for “Angel Tax Credit”

Select QNBVs may receive 35% tax credit

Set-Aside QNBVs (companies that are women-owned, minority-owned, or owned by someone with a disability) receive 35% tax credit

All investors receive K1 filings

Investment Structure

Investors receive unique federal and state tax benefits

Section 1202: Allows investors to exclude up to 100% of the gain on a stock sale, up to $10 million or 10 times the investment
Section 1244: Allows investors to reduce ordinary income, which is taxed at a higher rate than capital gains
State angel tax credits

secure and readily accessible

Investment Documents

Investors receive access to cap table and are notified of any changes to the cap table.
All corporate and investment documents are readily accessible to all investors.
Investors are notified of any changes to corporate documents or new funding rounds.

Directly receive company updates

All Investors Receive Timely Updates

MD Angels investors can send update requests to portfolio companies which are then disseminated to all shareholders.

No more getting “big timed” by larger investors

MD Angels receive quarterly updates on financial health of portfolio companies.
Members can make specific requests for select information that is then shared across the cap table.
No matter your size on the cap table, you get a voice.

Our Contribution

What We Bring to The Table

But the biggest value is the due diligence

We combine insights from practicing physicians and clinical entrepreneurs

Product

Evaluate clinically and financially the startup value proposition.

Business Model

Correlate the clinical value with the financial value to observe secondary factors like behavioral change.

Pricing

Understand the revenue model - payer, DTC, capital expense.

Sales Cycle

Trace the sales process and recognize the value analysis committee determining sales decisions.

End User

Observe directly how the end user affects product implementation and subsequent sales.

Start the Process Today

Apply for Funding

Become a Member