New Crowdfunding Sites Boost Health Startups

By Arlene Weintraub

When Dave Chase was looking to crowdfund his new company, Avado, last summer, he bypassed well-known sites like Kickstarter and went straight to Medstartr, which caters to health-related startups.

Seattle-based Avado makes technology tools that patients and physicians can use to communicate with each other—a mission that resonated with Medstartr’s audience of health-minded individuals. Within two months of posting a video and description of Avado on the site, Chase surpassed the $5,000 fundraising goal he had set and ended up bringing in $7,585.

In addition to the capital, Chase says, he gained valuable experience that he parlayed into a round of angel financing. “The Medstartr experience was critical for crisping up our story,” Chase says. “It helped us communicate the heart of what our benefit was to both patients and providers.” Chase took what he learned, used it to post a description of his company on AngelList—a site that matches financiers with entrepreneurs—and ended up raising $1 million in January.

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