Similarly, clinical demand and the opportunity for better patience outcomes were unmistakable. What had shifted was the capital landscape around them, reshaped by higher interest rates, tighter funds, and a broad retreat from early risk.
Venture firms that once wrote first checks were now focused on later-stage deals that demonstrated “traction,” though that threshold seemed to change based on whim. Federal funding, while essential, remained slow and unpredictable. The early capital that allows companies to move from validated science to real-world application was simply harder to access than it had been in years, leaving many promising startups in limbo.
The Structural Gap of Capital Allocation
I’ve seen versions of this cycle before—but not like this.
Earlier in my career, working with startups in places like El Paso and Lubbock, limited access to early capital was largely a function of geography. Historically, and even 20 years ago, companies outside coastal venture hubs often struggled to get noticed by institutional investors. Today, the dynamics are different. The gap isn’t regional anymore. It’s structural, affecting founders even in strong ecosystems with world-class research, talent, and capital.
Over the better part of my career working across startup ecosystems and capital markets, I’ve watched how shifts in capital allocation determine who gets to innovate and where growth ultimately takes root. What we’re experiencing now in healthcare and life sciences isn’t just another downturn. It’s a market realignment, widening the early-stage funding gap at a moment demand for innovation is accelerating.
The data supports it. Global digital health and healthtech investment surged to $29 billion in 2021, then fell sharply as interest rates rose and risk tolerance contracted. Seed and Series A rounds were hit hardest. Yet the fundamentals of healthcare innovation didn’t change. Clinical validation still takes time. Regulatory complexity remains. Capital intensity didn’t disappear simply because venture capital moved later.
In other words: the risk stayed the same, the capital didn’t.
The Catalytic First Check
Angel investors play a critical role in the very earliest stages of healthcare and medtech, often providing the first outside capital before specialist institutional VCs invest, particularly for high‑risk or very early concepts. According to the 2025 Angel Funders Report, investments in medtech and life sciences commanded 37% of all angel investments, surpassing software for the first time. Increasingly the catalytic first check, angel investors supply the capital that keeps promising technologies moving forward when other sources hesitate. Over 50% of all angel investments go into Pre-Seed and Seed stage deals, according to the Angel Capital Association.
I’ve seen this up close while helping build angel investor networks across the U.S. and around the globe. When angels are organized, informed, and connected to the local innovation community, they step into precisely the role the market needs them to play. They don’t just fund companies; they transform ecosystems, especially in times of volatility.
And angels bring more than money. They contribute domain expertise, operational insight, and access to critical networks—opening doors to health systems, payers, regulators, and strategic buyers. They help founders navigate complexity early, reducing risk when it matters most. In today’s cautious capital environment, that support is often the difference between building momentum and stalling.
The Market Reset Opportunity
Angel investors play a critical role in funding and guiding companies through this high-risk, pre-institutional phase, bridging the gap between early concepts and the milestone-driven validation that venture capital and strategics now demand.
The regional implications are significant. Across the country, bioscience employment and output are growing several times faster than the rest of the private sector in regions that successfully align capital, talent, and infrastructure. When more individuals become angel investors, more early capital circulates locally, supporting high-quality jobs, clinical impact, and long-term wealth creation. Over time, successful startup ecosystems recycle both talent and capital, compounding their competitive advantage.
This is why expanding access to angel investing matters. As I shared in my 2023 testimony before the House Financial Services Capital Markets Subcommittee, my work building Investors of Color has shown that reducing barriers to entry—particularly for underrepresented investors—is essential to mobilizing more early-stage capital. When angels are empowered to invest, the economic returns extend well beyond individual companies. Research from Angel Capital Association member groups shows that every dollar invested by angels generates an estimated $21 in broader economic impact.
Angel Capital as Economic Infrastructure
This is why Greater Philadelphia is at an inflection point.
The region has world-class research institutions, leading health systems, and deep scientific and clinical talent. What we need now is more early-stage risk capital aligned with those strengths—and more individuals prepared to step into the role of angel investors thoughtfully and effectively. We’re seeing movement with the recent launch of groups like the i2n Angels and stalwarts like the Robin Hood Ventures and Broad Street Angels – but there’s more opportunity than there are angels.
That’s exactly why we launched the Science Center Angel Investor Training. To date, we’ve trained 65 qualified investors, equipping them with the tools, frameworks, and perspective needed to invest responsibly in healthcare and life science startups like those coming out of the Science Center Capital Readiness Program. This isn’t about speculation. It’s about building informed angels who serve as long-term partners to founders—and to the region itself.
Across ecosystems I’ve worked in, I’ve seen what happens when angels recognize their role not just as investors, but as builders of markets and communities. They close gaps that traditional capital can’t or won’t. They keep innovation moving through periods of uncertainty. And they help regions turn moments of disruption into platforms for long-term growth.
The funding gap is real. It’s widening. Angels are already closing it elsewhere. Greater Philadelphia has the assets—and now the infrastructure—to do the same. We invite you to join us in our efforts to catalyze more angel capital.
This is the moment to step forward.
