Tech Coast Angels Introduces New Seed Track Funding Program for Early Stage San Diego Companies
Program Ideal for Qualified Companies In Need of Capital and Management Assistance
SAN DIEGO - December 11, 2006 – Tech Coast Angels (TCA), the largest angel network in the United States, today announced that the TCA San Diego network has created the new TCA Seed Track program for qualified technology and biomedical companies. Qualified companies are those with proven technologies that need a combination of active senior management assistance and seed capital in order to reach the milestones required to take their businesses to the next level. TCA San Diego is piloting the Seed Track program with the intent that, once the concept is proven, it will be introduced in TCA’s other networks in Los Angeles, Orange County and Westlake/Santa Barbara.
eefoof.com, a unique media-sharing site that pays its users, is the first company to receive funding through the TCA Seed Track program. San Diego-based eefoof.com received $225,000 in funding from TCA last month and TCA-member Harry White has joined the company as chairman. White founded and sold three successful San Diego-based high technology companies, understands the dynamics of growing a young company and is actively applying this knowledge and experience to eefoof.
“The Seed Track is a well thought out program, which was perfect for us: we wanted to raise a small amount of cash quickly and we needed significant advice and help with operations, finance, marketing and other business issues,” said Kevin Flynn, eefoof’s founder and CEO. “TCA members have offered me guidance every step of the way and I really appreciate everything they have done for me so far.”
The TCA Seed Track program was created to address the funding gap that impacts many early stage companies today, specifically those companies with proven technologies that are run by entrepreneurs without a proven track record. These companies often require additional capital beyond that provided by friends & family, but are typically not able to qualify to secure a traditional angel or venture capital funding round. A typical Seed Track investment will have a small number of initial TCA investors and a lead TCA investor who has an active role on the company's senior management team. Seed Track funding and management can assist entrepreneurs with completing product development; refining their business, marketing and intellectual property plans; and preparing for the next stages of company development and funding.
“TCA is always looking for new ways to assist early stage companies in Southern California and our new Seed Track program is another example,” said Doug Giese Ph.D., creator of the TCA Seed Track program and chairman of the High Tech Seed Track. “This program is ideal for emerging companies that need a small seed investment and active assistance from experienced entrepreneurs and executives.”
The types of investments of interest to the TCA Seed Track program are companies with innovative new technologies that have good barriers to entry, significant revenue potential, growing markets and a founding team willing to work with senior management advisors. According to Alan Donald, TCA San Diego member and chairman of the BioMed Seed Track, “biomedical companies of interest would include those with medical devices, tools for FDA testing and other medical technologies with a 3-5 year exit potential.”
San Diego-based companies that want to apply for TCA Seed Track funding should visit TCA’s website, www.techcoastangels.com, to fill out a funding application and indicate that they are applying for Seed Track consideration. Since seed funding only requires a few TCA members, applicants have an accelerated path through standard screening and due diligence procedures.
For more information, visit www.techcoastangels.com.
About Tech Coast Angels
Tech Coast Angels, www.techcoastangels.com, the largest angel investor network in the United States, provides funding and guidance to the most early-stage, high-growth companies in Southern California. Since its inception in 1997, TCA members have focused on building valuable companies, personally invested $80M in 124 companies and helped portfolio companies attract $778M in additional capital, mostly from venture capital firms. TCA offers companies much more than capital. Members also mentor and coach entrepreneurs, help recruit additional management, and provide access to institutional investors and strategic partners. TCA has more than 270 members in its four networks in Los Angeles, Orange County, San Diego and Westlake/Santa Barbara.
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