SaaS and Healthcare Angel Investor Mandate Interview
SaaS & Healthcare Investor Mandate Interview
Founders raising a first outside round, and investors who want to see how an angel group sets its mandate and judges teams.
What you will hear
Bo leads an angel investing group in South Florida that invests at the pre-series A stage. Bo says minimum checks are typically $400,000, and syndications can reach three or four million dollars. The group looks for companies past the proof of concept stage that already show some traction. The goal is to grow their value, then see a strategic buyer or private equity group take them out.
Richard C. Wilson and Bo also cover valuation range, geography and industry focus. Bo favors software as a service and IT-enabled healthcare because, in his experience, those companies can often be valued on a multiple of top-line revenue. His main advice for investors is to weigh the management team as much as the technology or the market, and often more.
The 5 big lessons
- Pre-series A is the target. The group invests in companies beyond the cocktail napkin stage that have gained some traction. Bo says typical checks for his group start at $400,000 and can reach three or four million dollars through syndications.
- Valuations range widely. Bo's group has invested at a valuation as low as $3.5 million. It has also backed a company valued at $30 million with over $5 million in recurring revenue.
- Angels bring more than cash. Bo says an angel group adds intellectual assets, relationships and contacts. Some founders choose an angel group over a private equity group for that reason.
- SaaS and healthcare IT stand out. Bo sees these two industries as the lowest hanging fruit because, in his experience, companies can often be valued on top-line revenue. He cites a four and a half or five times revenue valuation for companies up to about five and a half or six million dollars in revenue.
- Judge the management team first. Bo says he has seen good technology and patents fail under poor or average management. He looks for founders who are humble, teachable and who surround themselves with advisors and mentors.
Said on the call
"I've seen more good technologies, good intellectual properties, good patents, good businesses be driven into the ground and out of business by poor to even average management teams."
"The management team is an invaluable, irreplaceable component in any success."
"We don't care where the best deal is, whether it's Miami, Manhattan or Menlo Park, California."
Key facts
- Bo's group typically invests a minimum of $400,000 and up to three or four million dollars through syndications.
- The group has invested at valuations from $3.5 million up to $30 million, with the $30 million company having over $5 million in recurring revenue.
- Bo cites a four and a half or five times top-line revenue valuation for SaaS and IT-enabled healthcare companies up to about five and a half or six million dollars in revenue.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: SaaS & Healthcare Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around syndication structures, investor eligibility rules and offering documents. Do not use AI to write your own legal agreements.
Related questions
- How do angel syndicates work for startups?An angel syndicate is a group of individual investors who back a startup together.
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
Questions about this video
What check size does Bo's angel group write?
Bo says the group's minimum investment is typically $400,000. Through syndications, the group can invest as much as three or four million dollars.
Does the group invest only in Florida?
No. Bo says the group does not care whether the best deal is in Miami, Manhattan or Menlo Park. The main limit is that the group stays domestic to the US for now.
What is Bo's top advice for investors?
Do not undervalue the management team. Bo says to weigh the team as much as or more than the technology or the market, and to compare how each leader builds advisors around them.
Put this into practice with the data room checklist. See all angel investors resources.
