Southern California Angel Network Surpasses Previous Records for Both Investments and Activity
IRVINE, Calif. January 29, 2015 Tech Coast Angels (TCA) invested a total of $16,373,337 in 61 total deals in Calendar Year 2014. The angel network announced that 2014 was the most active year since the networks inception in 1997 for number of deals funded, and capital raised was also the largest ever. TCAs five networks throughout Southern California invested in a variety of industries last year, including consumer goods, healthcare, biotechnology, HIPAA-compliant data storage, social networking, organic agriculture, and automobile technology.In 1H 2014, TCA investments totaled $6,321,874 in 27 total deals. 2H 2014 saw a nearly 60% increase in the amount of total investment from the first half of the year, with $10,051,463 in 34 total deals. Compared to 2013, the angel network increased its total investment portfolio by nearly 12%, from $14,639,612 million in 2013 to $16,373,337 in 2014.After four successful exits in 2013 (Cognition Technologies, Green Dot, Lend Amend and Trius Therapeutics), 2014 brought five more positive exits with AIRSIS, Allylix, Bluebeam Software, Hookit (formerly Loopd Networks), and Mindbody Software. TCAs portfolio of new deals for 2014 include: Aggregage, Apeel Sciences, Ascendant Spirits, Beacon Healthcare, Edufii, Fusion Brake, GoBookIt, ImmunoGum, iPourIt, LeaseLock, Neural Analytics, Parcel Pending, Perfectna, Portfolium, Respiratory Motion, RetroSense Therapeutics, Ring Router, Schlep & Fetch, Soma Bar, Spine Innovation, The Influential Network, TrueVault, Unlicensed Chimp Technology, and WeGoLook. “We are excited by the quality and unique breadth and scope of these great, young, mostly Southern Californian companies that we can support through our experience and capital, said Michael Green, TCA incoming chairman. “We look forward to continuing to find, hone and cultivate the many outstanding early-stage companies in our community in 2015.
IRVINE, Calif., March 29, 2011 A recent PricewaterhouseCoopers report entitled Shaking the MoneyTree established southern California as the third most active area for equity investments in venture-backed companies in the United States, coming in just slightly behind New England and growing far faster. Tech Coast Angels (TCA), the largest angel investment network in the U.S., was ranked the number one investment group in Southern California by the report.
According to Mike Napoli, recently appointed chairman of TCA, “Tech Coast Angels has been growing steadily through our focus on the entrepreneur and making it easier for new companies to get their ideas heard and considered. Even much larger investors can seldom claim a result as impressive as five profitable exits in a single year.
TCA has discussed individual exits in various announcements, but this is the first time the network is making available details on all five results.
TCA-invested company MindBody Partnerships which provides a lead generation, conversion, retention and loyalty program for the beauty and health and wellness sector. As part of its Series D financing, MindBody Partnerships provided TCA with a 78.75 percent IRR. Integrien, an IT analytics startup, was acquired by virtualization giant VMware for $100 million in August 2010, and Language Weaver, a pioneer in statistical machine translation, was acquired in July by SDL, the leading provider of global information management solutions. Language Weaver was acquired for a consideration of $42.5 million in cash. Trius Therapeutics, a company developing an antibiotic for serious gram-positive Staph infections, completed an IPO in August directed at raising $50 million through an offering of 10 million shares. The company is listed on the NASDAQ. Finally, the much heralded IPO of Green Dot Corporation, a prepaid debit card company, yielded over 100 times return for early investors in the company.
“As you can imagine, stated Napoli, “both our entrepreneurs and our invested members have been happy and inspired by the excellent results TCA has helped produce.
About TechCoast Angels
Tech Coast Angels, www.techcoastangels.com, is the largest angel investor network in the United States. Its members provide funding and guidance to more early-stage, high-growth companies in Southern California than any other investment group. TCA members invest in companies in a wide range of industries, including clean technology, consumer products and services, digital and social media, financial services, hardware and software technologies, and life sciences and healthcare. TCAmembers give companies more than just capital; they also provide counsel, mentoring and access to an extensive network of potential investors, customers, strategic partners and management talent. TCA has more than 250 members in five networks in Los Angeles, Orange County, San Diego, Westlake/Santa Barbara and the Inland Empire (Riverside and San Bernardino Counties). More information on investment with Tech Coast Angels can be found at www.techcoastangels.com, www.facebook.com/techcoastangelsor twitter.com/techcoastangels.
IRVINE, Calif., August 18, 2010 An IPO for Green Dot Corporation (NYSE: GDOT) yielding over 110 times return, the acquisition of Language Weaver Inc. by SDL for $42.5M, and an IPO for Trius Therapeutics (NASDAQ: TSRX) have left a lot of Tech Coast Angels (TCA) members smiling and many early-stage, innovative companies excited about the future of entrepreneurship in Southern California. The three exits marked what has been a dynamic year for Americas largest angel investment network despite the economy, with a total of 14 new and follow-on deals by the end of second quarter totaling $19,364,501 of total investment (TCA and partners).
According to Richard Sudek, Chairman of Tech Coast Angels, “A lot of people with dynamic new ideas are looking at the economy with trepidation and we want them to know that entrepreneurship is alive and well. Great, game-changing ideas are always welcome and TCA is doing everything we can to make the process of creating a working company smooth and forward-moving. Green Dot, Language Weaver and Trius are showing the way.
Green Dot, a leading prepaid financial services company, Language Weaver, a pioneer in statistical machine translation, and Trius Therapeutics, a biotech firm developing an oral antibiotic for serious staph infections, demonstrate the wide variety of industries TCA invests in. Among the new investments in Q2 are OLFactor, a novel technology for insect repellant and trapping, HitFix, an entertainment news site featuring original content, and Vokle, which provides a next generation interactive platform for anyone wishing to reach their audience through live video dialogue. Sudek added, “We invite entrepreneurs to visit our website at www.techcoastangels.com where theyll find a description of what were looking for and the simple steps to get ideas in front of TCA. Were a receptive audience.
About Tech Coast Angels
Tech Coast Angels, www.techcoastangels.com, is the largest angel investor group in the United States. Its members provide funding and guidance to more early-stage, high-growth companies in Southern California than any other investment group. TCA members invest in companies in a wide range of industries, including the life sciences, biotech, IT, services, retail, Internet, financial, software, media, consumer products and tech startups. TCA members give companies more than just capital; they also provide counsel, mentoring and access to an extensive network of potential investors, customers, strategic partners and management talent. TCA has more than 250 members, including its venture capital affiliates, in five networks in Los Angeles, Orange County, San Diego, Westlake/Santa Barbara and the Inland Empire. More information on investment with Tech Coast Angels can be found at www.techcoastangels.com, www.facebook.com/techcoastangels or twitter.com/techcoastangels.
Monrovia company is the largest player in the prepaid debit-card industry, with about 3.4 million active cards. For now, its biggest market is people outside the financial mainstream.
July 23, 2010
Financial service firms have struggled for years to reach the estimated 30 million lower-income households that make little use of traditional banks.
Green Dot Corp. of Monrovia thinks it’s found a good way, and the stock market Thursday resoundingly concurred, valuing the newly public, 11-year-old firm at $1.8 billion after the first day of trading in its shares.
The company markets so-called prepaid debit cards, which look and act like bank debit cards. But prepaid cards don’t pull money out of your checking account. Instead, consumers load them with their own money — using cash or direct deposit of their paychecks.
“We call it the Southwest Airlines of bank accounts. It’s simple, it’s easy, and the fees are transparent,” Steven W. Streit, founder and chief executive of Green Dot, said Thursday.
The firm’s shares soared $7.99 to $43.99 on Thursday, up 22% from their higher-than-projected price of $36 in the initial public offering late Wednesday.
The offering raised about $187 million, but none of that went to Green Dot. All of the shares bought in the offering were sold by existing stockholders in the company.
Green Dot is the largest player in the prepaid debit-card industry, with about 3.4 million active cards. The No. 2 provider is NetSpend Holdings Inc. of Austin, Texas, which also intends to go public.
Industrywide, money loaded onto general-purpose reloadable debit cards in the U.S. will soar to $118.5 billion in 2012, up from only $8.7 billion in 2008, research firm Mercator Advisory Group estimates. That figure could reach $440 billion by 2017, Boston Consulting Group projects in a report prepared for MasterCard.
Most Americans are familiar with prepaid debit cards mainly as gift cards, an easy way to pay for those lattes at Starbucks until the cash stored on the plastic runs out.
But prepaid cards also can be souped up for use at any place that accepts MasterCard and Visa — with which Green Dot has partnerships — as well as for such applications as paying bills online.
A consumer can grab a card from Green Dot or one of its retailer partners while waiting in a checkout line and pay as much as $4.95 each time it is loaded with cash. There is no reload fee for direct deposits of paychecks. One catch: There is a $5.95 monthly maintenance fee, but it is waived each month that the card is used at least once a day on average, even if only to buy a pack of gum at a time.
Green Dot posted $235 million in revenue for the fiscal year that ended in July 2009, up 40% from the year before. Its earnings more than doubled to $8.2 million. That rapid growth slowed in the first few months of the current fiscal year but remained quite strong.
Green Dot garners 64% of its revenue as the provider of prepaid debit cards for Wal-Mart Stores Inc., which took a small stake in the Monrovia company recently. It also sells cards online and through retailers including CVS, Kroger, Rite Aid, Walgreens and 7-Eleven.
The cards also are used for many specialty purposes, such as paying a doctor through a healthcare spending account.
Major employers including Wal-Mart are using the cards to pay employees, and big banks are teaming up with the government to issue the cards for Social Security payments and other federal disbursements.
The government cards can be fine-tuned so that, for example, a recipient could use them to buy regular groceries but not beer and cigarettes, said Zil Bareisis, a consultant in London with Oliver Wyman Group’s Celent unit.
For now, the biggest market is people outside the financial mainstream, including those who may have given up on banks because they were socked with huge overdraft charges or can’t maintain a high-enough balance or use enough additional bank services to qualify for free checking.
“The unbanked represent a huge customer base and opportunity,” said Mayank Tandon, a financial technology analyst with Signal Hill Capital Group in Baltimore. “They are really the target for the prepaid cards.”
Copyright © 2010, The Los Angeles Times“