Open Season for Funding Healthcare Startups
Did you ever wonder why you never see billboards and infomercials selling stocks? For over 80 years since the Great Depression, there has been a ban on the general solicitation of private equities. Yesterday, that ban was lifted as Title II of the JOBS act was allowed to go forward by the SEC and already my inbox has the first few solicitations.
This is why we started MedStartr just after the JOBS act passed in the first place. The JOBS act puts in place several rules that make investing in early stage companies much much easier both for startups and potential investors. Instead of going to 37 meetings with VCs and flying all around the world to do dog and pony shows, you can do it all online. Our MedStartrs have been doing this already to good effect on the general platforms for this, but we think healthcare deserves our own.
Why? Because as any entrepreneur who has pitched non-healthcare VCs knows, Investing in healthcare requires very specialized domain expertise. Doctors, Scientists, Educated Patients, Caregivers, and Healthcare Leaders who understand a disease state and can evaluate solutions are the best investors for innovation in healthcare and the MedStartr community is comprised of thousands of such folks that have gotten involved in healthcare innovation in myriad ways. Title II of the JOBS act passing means we can start to open up the platform to investment grade offerings, which means it will be Open Season for Healthcare Startup Funding! Happy Hunting!
But just like real hunting, you need a license and there are rules. Title III of the JOBS act has not passed yet, and that is when anyone can invest in qualified startups. For now, only “Accredited Investors” can invest using online platforms. Accredited investors are defined as individuals with over $1 Million dollars in net worth excluding their primary residence and over 200K a year in income. For the full definition of “Accredited Investors” according to the SEC, please visit them here. A sampling showed that over 30% of our community members are Accredited investors, which to us indicates that it is perfect for the MedFundr platform we are building.
So here is the plan for any startup:
1. Run a great project on MedStartr and sign up a hundred supporters, a few partners, and some press.
2. Apply to be listed on MedFundr
3. Go Live on MedFundr and leverage your success on MedStartr and engage the Crowd that Cares about your solution.
Make sense? We think so. Our mission is to help healthcare innovations go from Idea to IPO more reliably and Crowdfunding just got a whole lot more viable. Are you ready? Get Startd today or email GetStartd@medstartr.com to get a Startr Pack. Don’t forget to sign up for our newsletter at the right if you have not already! Got questions? Ask us through that little blue tab or just call (530) MED-STARtr.
Thank You for your Support!
Alex, Jeff, Suzanne, Theresa, Brett, Mike, and Courtney
p.s. To learn more or to sign up as beta testers of our new MedFundr platform, please visit MedFundr.com. The alpha is up!