Wall Street Journal: MD Insider CEO Says Syndicate Crowdfunding is ‘Wave of the Future’

David Norris, co-founder and chief executive of medical-search technology company MD Insider, previously launched five other startups, raising hundreds of millions of dollars over the years from venture firms, private equity shops and angel investors.

His last endeavor, for example, consumer-engagement platform maker BlueCava Inc., has raised more than $35 million, with $4 million of that coming from Mark Cuban, he said.

But this time around, as Mr. Norris hit the fundraising trail for his latest startup, MD Insider, he went another route. After knocking on doors and raising $2 million from angel investors, Mr. Norris took his company to equity crowdfunding platform AngelList, where MD Insider raised $1.5 million in “pre-Series A funding” from hundreds of investors within a matter of minutes.

AngelList says MD Insider’s recent funding round is the largest ever raised in a single round via the online platform.

Mr. Norris says syndicate crowdfunding, where an entrepreneur can connect with a high-profile individual investor backed by a powerful syndicate of angels, is “the wave of the future.” He told Venture Capital Dispatch the story of MD Insider and its fundraising efforts.

Read more at WSJ.com »