Technology accelerators offer a lot to the startups that take part in their programs, from funding to mentorship to introductions to business partners and investors who can help the company grow.
But StartUp Health–a New York-based accelerator that dubs itself an ‘academy’ because of its mutliyear engagement with startups–is offering something new. Companies taking part in StartUp Health now have the potential to raise funding from the organization’s syndicate on crowdfunding site AngelList.
“I’ve only seen individual investors [start health-investing syndicates] on AngelList. We’re the first accelerator,” said Unity Stoakes, co-founder and president of Startup Health.
StartUp Health, which works with digital-health startups for a period of three years, has 97 companies in its current portfolio, he said.
The accelerator’s AngelList syndicate, which has 44 investors taking part, has funded its first StartUp Health company, providing nearly $200,000 for Tute Genomics Inc., Mr. Stoakes .
Tute makes cloud-based software that helps with genome interpretation, specifically a genome annotation and interpretation platform that helps doctors and researchers identify disease genes and biomarkers from next-generation sequencing data.
Reid Robison, chief executive of the Provo, Utah-based company, said the AngelList funding helped the company’s recently raised Series A round reach $3.4 million, Tute has also been backed by U.K.-based Eurovestech and by Peak Ventures.
Mr. Stoakes said that crowdfunding syndicates can be a necessary shot in the arm to startups as they also raise money the old-fashioned way.
“Raising funding can take weeks or months,” he said. “It can be a multimonth process. This is a multiday process.”
What started as an experiment for StartUp Health now has traction, he said. The accelerator said it aims to launch 10 to 12 crowdfunding campaigns for its companies each year.