Wow, Thanks for the comments! Very insightful...I like the idea to sell medical products on a subscription based model...it has some schleps related to it :)http://paulgraham.com/schlep.html
Take the money and run....no just kidding of course. Is it possible to pivot your idea? You must have thought about this I am sure...Your team must be pretty good, otherwise you would n't have an outstanding angel board and I assume you wouldnt be able to keep the money. I agree with the approach of "lifeisstillgood". Can you tell us a bit about your "failed" idea?
It might seem strange at this point but have you considered to apply here?: http://ycombinator.com/noidea.html