How did you get involved in investing?
I’ve been a practicing radiologist for 10 years, mostly in a private practice setting. Over the years I’ve considered a number of times going back and getting some additional education, potentially an MBA, to get more involved in the entrepreneurial side of things. It was pretty timely when I was approached by AngelMD and I got a chance to meet with Tobin Arthur and talk with him, and got to learn about the syndication process. This is an area where I can expand my professional expertise outside of clinical medicine. Since AngelMD was my first investing experience, there was a lot of learning on the fly, learning from other AngelMD members, and doing a lot of research. Until last year, I had no real knowledge of investing.
How has AngelMD helped introduce you to investing?
The process of investing has been fairly straight forward as AngelMD has done a good job of providing information necessary for investors to do their due-diligence before getting involved in a syndicate. Being a syndicate lead has a lot more of a learning curve. I was able to work under a seasoned syndicate lead, for the companies I have syndicated, making it a lot easier.
What do you look for when investing?
I’m looking for things I understand. I try to stay away from areas of medicine that I’m not familiar with and require more background research to get up to speed on before I put money down. There are so many thing in the medical device space that I do understand, so many that I can just stick in my small area and have plenty to look at. I look for something that fills a need that I myself have, and based on that I see how a product could solve it.
What do you look for in becoming a syndicate lead?
In order to lead a syndicate you need to know the area really well. There is no way that I could do my due-diligence on a company in an area that I don’t have pre existing expertise. Im looking for companies with defensible IPs, that fill a niche with the solution to a problem, and are in fields with barriers to entry. They have to have a strong team with a history of strong execution. They have to have a concrete exit strategy.
What advice would you give to potential physician investors?
For physicians getting into investing, the mantra of “invest in what you know” makes a lot of sense. Learning to do proper due-diligence is crucial. There are a lot of flashy things you could get distracted by in a pitch deck, if you don’t take the time to look into it you can get fooled. For physicians this isn’t something we are trained in.
For non physician investors, it’s more difficult. There is a lot of information asymmetry in investing in the medical space. The importance of having a medical expert opinion can’t be overstated.
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Image Credit: Interventional Radiology Clinic