Our mission is to be the BEST place for the BEST companies to raise their seed, bridge or early A-round funding

If your company has a strong team with a great defensible idea, has early traction and is set to grow, TCA is ready to invest up to several million dollars through our funds, individually or with our syndicate partners. TCA looks at investments in the United States and Canada although most of its investments are from companies in Southern California. Through its treaties with other angel groups and through its participation in the Angel Syndication Network, Tech Coast Angels has the ability to syndicate deals that require more capital.

Are you ready to get started? It’s simple!

Investment Criteria:

  • US-based and mostly in California*
  • Strong and resourceful management team with impeccable integrity
  • Solution to a compelling business problem
  • Large identified market opportunity
  • Defensible business model / proprietary technology
  • Sustainable competitive advantage
  • Some level of market validation or traction
  • Ability to attract future funding
  • Credible exit potential

The majority of our investments are in companies located within Southern California. However, we will consider ANY startup and seed company based on meeting the other criteria. Depending on your technology and market segment, we will determine the best network for your funding needs. We syndicate deals (inbound and outbound) with many angel groups in the United States and are one of the leaders of the Angel Syndication Network which includes more than 50 Angel Groups. Check out the Angel Capital Association website for a full list of member angel groups in the U.S.

Ventures That We Seek

Screening And Evaluation

Screening is an important part of the TCA funding experience. Each year, members of TCA look at and evaluate more than 1000 companies. Many of those companies then apply online to our screening process. Approximately 25 percent of these companies make it to the screening process and 25 percent make it into due diligence. Although each year varies, we typically fund 30-40 new ventures per year plus a similar number of existing portfolio companies which are seeking additional growth capital.

1.

Web Application

Web Application

The first step in entering the TCA funding process is our online application. This process includes filling out an application with an overview of your company, including a summary of your financials. You’ll also upload an investor PowerPoint presentation.

2.

Initial Review

Initial Review

TCA staff and industry-specific investor panels perform an initial screening of the application to ensure it is within our scope of interest. If you pass the initial review stage, you will be invited to present at a pre-screening.

3.

Pre-Screen Presentation

Pre-Screen Presentation

Each panel’s prescreening process varies, but the general concept is an elevator pitch between 8 and 15 minutes, followed by Q&A. The prescreen presentation is given to a small group of TCA members who have domain expertise in your technology or market on a web conference call or at a separate meeting. The purpose of this pre-screening meeting is to determine if you are ready to present to the larger group, and give you constructive feedback to improve your presentation. You’ll receive feedback, and if you pass the pre-screen, you’ll be invited to present at a screening session. Of note is that TCA has both general prescreens as well as specialized medtech prescreens.

4.

Screening Presentation

Screening Presentation

Typically three to four companies present at a bi-monthly screening sessions. This consists of fifteen minutes PowerPoint presentation and fifteen minutes of questions and answers. After each presentation, TCA members discuss whether there is interest to move forward into due diligence. The entrepreneur is given feedback regardless of outcome. Presentations are usually videotaped so that members who are not present can participate later online on our member-only secure website. The goal of a screening session is to get significant interest from TCA members and attract a “deal lead”, who will coordinate the due diligence and be your point of contact throughout the due diligence and funding process. Funding can be through one of the TCA Funds as well as individual side car investments

5.

Due Dilligence

Due Dilligence

A due diligence team is formed based on the number of interested members who signed up during the screening. A deal lead coordinates the due diligence activities. Due diligence consists of verifying representations by the entrepreneur, speaking with customers, reviewing agreements and patents (if any), checking references, backgrounds, etc. The results of the due diligence process are posted on the TCA website (in the members-only section), and if the results are positive, the venture moves forward to funding through one of the funds and/or through side car investments.

6.

Monthly Lunch/Dinner Meeting (optional)

Monthly Lunch/Dinner Meeting (optional)

Companies that pass due diligence may present at monthly lunch/dinner meetings at most of the networks, introduced by the “deal lead”, who led the due diligence team. This enables the entrepreneurs to present to members who may not have seen their initial presentation. This is the final opportunity for entrepreneurs to garner enough interest from members to secure funding. Typically a signed term sheet is available when a company presents at this stage. Generally TCA members’ terms of investment follow “standard” terms for financings developed over the years by VCs and other sophisticated investors.

7.

Funding

Funding

Funding occurs after there has been enough interest generated and communication from the entrepreneur and deal lead. Members invest in deals through our funds and/or individually; however, everyone invests based upon the same term sheet. Typically, the minimum individual TCA member’s investment amount is $25,000. TCA funds typically invest a minimum of $100,000 per company.

Apply For Funding!

Entrepreneurs can apply for funding though Tech Coast Angels by completing this Funding Application. Apply for funding here!

Some advice for completing the application: