On the economic front, Chief Investment Officer Michael Schmanske has been posting a blog series on all things economy. There is more to come, but here is the essence of his position:
– Inflationary pressures are deep-rooted and not going away anytime soon. If you were looking for an economic rebound in the next quarter or two, you need to recalculate.
– There are sectors that certainly make more sense to focus on if you are re-balancing your investment portfolio, but getting into uncorrelated assets is the better move altogether. If you are not familiar with this term, we have several previous blog posts on the topic you can search, but the short answer is to focus on “alternatives” (aka – private investments)
– Healthcare startups have some characteristics that make them a very intelligent target. They are part of the largest sector of our economy and that sector is going to continue growing for as long as it matters for anyone reading this who is also investing. Startups in this sector are barely aware of the detrimental affects of inflation. They keep building for longer term exits/liquidity.
– Most SPV structures you find in the marketplace are not well designed. They are simply legal vehicles that enable investors to throw capital into deals and hope things go well. We don’s support the framework of using hope as a strategy. This is where our Managed Syndicate offering came from. It’s designed to finance active investing which usually means placing a clinician expert on the Board or participating as a Board Observer. It includes funds to activate the AngelMD network to support the startup over the long-term. In other words, it blends the characteristics of a managed fund and the ability to invest in single target deals.
– If you are a physician or dentist and want to earn equity in exchange for a little time here and there, the AngelMD Clinical Advisory Board is now accepting equity from startups in exchange for its industry-leading analysis process. There is still room to join. Information is available on the website.
– Startups are in the business of incrementally reaching milestones…small and large. Like the tree that falls in the woods, if no one knows, did it really fall? Startups are highly encouraged to send in their updates. Our email information is always in this newsletter and listed in the VitalSigns briefing that each of you receive Monday through Friday.
That feels like a lot to recap, and its only a fraction of what is going on in the AngelMD community. Thanks for being involved. Reach out with feedback, ideas etc anytime.