Join & Become LSA Member
Since 2005, we have invested over $60 million in over 100 startups. Historically, LSA has invested between $100K to $1.1M as an initial investment. Many of our deals are syndicated by us or by other parties to raise $3 Million or more.
Benefits of Membership
Our Deal Flow: We look at and participate in many promising new technologies and deals that will influence healthcare over the coming decade. We meet the scientists and entrepreneurs face-to-face. Our member-only online tools give you full access to look at the Entrepreneur Application, entrepreneur-uploaded materials, and member-only comments about the investments.
Get to Know Your Peers: Perhaps our primary benefit is getting to know and interact personally and professionally with our LSA community, comprised of 130+ angel investors, partners in academia and corporate incubators, venture capital firms, investment fellows, and more.
Share Due Diligence and Investment Savvy: Because we are sector-focused with core life science vertical segments, all members benefit from the work, education, and experience of fellow investors who participate in the due diligence and affairs of the company.
Access to Our Follow-On Investments: We commonly make follow-on investments in our companies. While valuations are typically higher, these companies have performed against projected milestones and show traction with investors, strategics, and customers. These are pre-vetted deals where some of our members have come to know the management and understand the market and product. Although fundraising may have to be allocated to prior LSA investors, there are often opportunities for other members to invest. Several recent deals have had attractive follow-on valuations, often because the company raised a smaller bridge or note round and has now achieved the milestones enabling a larger equity round.
Investment Management: We invest through an LLC, so there is one set of paperwork and one set of documents for the company. You receive a K-1 tax form each year for your investments, prepared by LSA Finance team. Because of legal restrictions on the number of members of LLCs, we have to open a new LLC every few years, and now are using Life Science Angels IX, LLC.
Tax Planning: Wee do not provide tax advice, although we do have occasional presentations on investment strategy by members who are not tax professionals. The experiences of these members help to steer you in the right direction when you talk with your tax advisor. All angel investors would benefit from familiarity with their financial situation and may wish to discuss the following beneficial IRS codes with their tax advisor:
26 U.S. Code § 1045 - Rollover of gain from qualified small business stock to another qualified small business stock.
26 U.S. Code § 1202 - Partial exclusion for gain from certain small business stock.
26 U.S. Code §1244 - Losses on small business stock.
Investment Monitoring: A key to successful angel investing is staying in close touch with the company to provide advice and monitor progress. Every round of investment has unique characteristics, and results are better if an experienced investor with an investment in the company works with the management.
Investment Progress Reports: LSA does its best to have companies report regularly on their progress or lack of progress. The reports are emailed to members of those investments. One of the difficulties of angel investing is securing reports on the companies when the investment amount is small. LSA addresses this problem by having a larger pooled investment through the LLC and having the Executive Director and the deal lead(s) who maintain contact with company management, often as a company board member.
Business Events
Member Dinners - We have 4 evening dinners in the Palo Alto Area that are attended by about 80 of our members, entrepreneurs, and guests. They are held at the Sharon Heights Country Club in Menlo Park or a similar facility. The meetings start with a cocktail hour for people to network. Then dinner and then two or three companies make presentations - 20 minute to present and 10 minutes for questions. Most companies have a due diligence lunch within a week of the meeting.
Screening Meetings - Our bi-weekly screening meetings are held, where the members are presented with 2-3 new pitches for investment. Held via Zoom, they are typically attended by 20-25 members. All company presentations are recorded for later review by members.
Due Diligence Meetings - Companies that amass enough member interest in the Screening meetings will then be evaluated further by due diligence teams consisting of Members and Fellows who have the expertise to evaluate different aspects of the business plan, including the market, technology, IP, financials etc. and develop the Term Sheet. LSA believes that good due diligence is important for making good investment decisions. Members are highly encouraged to participate in due diligence teams where they have relevant domain expertise. If a company passes the due diligence vetting process, the due diligence teams will produce a Deal Memo, and the raise for circle is announced to initiate the investment process.
@LSA Series - We collaborate with our partners, comprised of academic and corporate accelerators and incubators, to select and connect with companies of potential investment interest to LSA. Held 5-6 times a year, members hear the pitches and connect further with the entiites as we seek to diversify the portfolio companies for LSA.
Member Education Sessions - We hold several educational sessions - in-person and/or via Zoom - on topics of interest to members. Important topics are repeated at least every two years. Past sessions have included: term sheets, building a portfolio, advances in digital healthcare, Proseeder usage, exits, deal valuation, tax provisions for small company investing, and introduction to LSA for new members.
External Events - LSA informs Members of relevant events for Angels in the Bay Area and across the country - pitch events, open houses, speaker panels, angel meetings. Our members often receive discounts and/or complimentary registration on paid events and invitations to events not generally available to the public.
Social Events
Summer Party - This is a complimentary party for members and Fellows, often at the house of one of our members. Food and beverages are provided. Attendance is often 80-100 members.
Holiday Party - Same as Summer Party, but in December or early January.
Screening Committee Regulars Annual Dinner - We provide a complimentary dinner at a fine local restaurant for members who regularly attend and contribute at our screening committee meetings.
Administration
We have a full-time Executive Director and Finance Team, who handle all paperwork and participate in all the deal closings.
We have a weekly Newsletter emailed throughout the year. These include such items as an introduction to new members, a list of investments made, a calendar of events, interesting external events, and other newsworthy items.
Qualifications for Membership
You must be a US-Accredited Angel Investor by the rules of the US SEC (click here) with expertise in life sciences, often called 501C Regulation D. This includes a number of corporate and trust entities.
Most of our members qualify as:
A natural person who has individual net worth, or joint net worth with spouse that exceeds $1 million at the time of the purchase, excluding the value of the primary residence.
A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
Our Members
LSA members include investors with careers in the life sciences; however, many members are interested in investing in life sciences, but have had professional careers in a different arena. We welcome both types of members.
Members include prominent executives, physicians, scientists, engineers and entrepreneurs. LSA’s members have been founders, Chairpersons, CEOs, and senior level executives in many healthcare startups. LSA members are active participants in deal sourcing, due diligence, membership screening, coaching, etc. In addition, LSA’s members include family offices and groups desirous of an early window on healthcare startups, as well as in investing alongside LSA.
How much do our Members Invest?
Everyone’s financial situation and tolerance of risk is different. However, we find a good approach is to invest a smaller amount in more deals, for example 2 to 3 deals each year instead of putting all the investment in one deal. LSA members are expected to invest $25,000 per year.
How much does and LSA Membership Cost?
Facts and Figures:
The minimum investment by an individual in an initial LSA investment in a company is $5,000.
In follow-on rounds, the minimum investment is $5,000 unless our pro rata in the deal reduces this amount. Since LSA historically has made about 2 follow-on investments, there should be ample opportunities for these investments if you are an existing investor in the deal. There has often been investment available for other members, but only if existing members do not take their pro rata shares.
LSA only makes a first-time investment in a company if 6 or more members join the round.
Total investments from LSA in 2025 were $2.8 million.
LSA has invested over $60 million in over 100 companies since 2005.
