Seed Angel Investor Mandate: Digital Health, Ad Tech and Logistics
AdTech, Managed Health, HealthTech, and Seed Stage Angel Investor Mandate Interview
Seed stage founders in digital health, ad tech, logistics tech or future of work, and new angel investors who want to see how one angel group sources and decides.
Quotes from the session
"We look at 2500 companies a year. About two thirds of those are not referred in."
"We are completely neutral between convertible note or priced equity."
"So say no more often than you want to. I think it's the right thing to do for the founder, but it's also the smart thing to do for you."
Summary
Angela describes an angel group of 80 investors, mostly in New York City, that writes seed checks of roughly $150,000 to $200,000. The group started seven years ago and looks at digital health, future of work, logistics tech and ad tech. It will invest in any US-based company. About two thirds of the portfolio is in New York and one third is elsewhere in the US.
On terms, the group says it is open to either convertible notes or priced equity. Angela sees about 60% convertible notes, 30% priced equity and 10% safes, and shares her view on which terms she likes to see in a safe. She also covers how to judge seed valuations, what she wants from digital health founders, and why investors should say no clearly instead of maybe. Richard C. Wilson hosts the interview.
Facts and figures
- The group has 80 investors, started seven years ago, and has 65 portfolio companies.
- Recent deal mix was about 60% convertible notes, 30% priced equity and 10% safes.
- Angela cites 15 to 25% dilution at seed as her math-based valuation check.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: AdTech, Managed Health, HealthTech, and Seed Stage Angel 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 convertible note terms, safe and equity structures and offering documents. Do not use AI to write your own legal agreements.
The 5 big lessons
- Referrals matter most for access. The group looks at 2500 companies a year, and about two thirds are not referred. Yet 50 of its 65 portfolio companies came through a referral. Angela advises founders to get an introduction when they can.
- Check size and focus areas. The group makes seed investments of roughly $150,000 to $200,000. It focuses on digital health, future of work, logistics tech and ad tech. It is currently looking closely at logistics tech.
- Deal structure is flexible but specific. The group says it is open to either convertible notes or priced equity. Recent deals ran about 60% convertible notes, 30% priced equity and 10% safes. Angela shares her view on which terms she likes to see in a safe, and she notes that many New York investors dislike them.
- Dilution is the simple valuation check. Angela describes dilution as her math-based check, with founders giving away about 15 to 25% of the company at seed in her experience. Outside that range, she sees it as a sign to look more closely at the raise size and valuation. The rest is judgment built by seeing around 50 deals before signing a check.
- Say no clearly and quickly. Angela says investors tend to say maybe or too early because they dislike saying no. She argues a quick, kind no builds a reputation as a candid investor. Two of the group's seven exits came from companies it had first said no to.
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 this angel group write?
Angela says the group makes seed investments of roughly $150,000 to $200,000. It has 80 investors, mainly based in New York City.
Does the group only invest in New York companies?
No. It will invest in any US-based company. Angela says it can support New York area companies better through its network, and the portfolio is about two thirds New York and one third elsewhere in the US.
What does Angela look for in digital health founders?
She looks for founders who understand every part of the health ecosystem, including physicians, nurse practitioners, patients, caregivers and insurance companies. In her experience, founders who can state a clear value proposition to each of those players almost always get a meeting.
Put this into practice with the dilution calculator. See all angel investors resources.
