During its 20th Year, Angel Network also Launched Angel Syndication Network to Share Deals with over 20 Other Angel Groups
IRVINE, Calif. – April 25, 2017 – Tech Coast Angels (TCA) invested $14.1 million in a total of 55 companies in a diverse mix of industries in 2016. TCA’s total investment for the year was its fourth highest since the network’s inception in 1997, and its two largest deals in 2016 were Echo Labs and Movocash – each at over $1 million from TCA. TCA had six exits including five acquisitions (Retrosense Therapeutics, WeGoLook, Clearcare, Hipmunk, and HitFix) and one optional exit (grandPad) upon receiving strategic investment from Acer. This brings the total exits to 68 in the angel network’s history.
Ninety-one percent (91%) of the deals were seed or Series A rounds. Sixty-two percent (62%) of the companies in which TCA invested were initial investments by TCA, up from 35% in 2015. The investment increase in new and early stage companies reflected a wide berth of opportunities in 2016, however the report cautions that such investment activity may be similar to “experiencing an Indian Summer,” as this cycle seems to be drawing to a close.
These investments were across a broad range of industries, but the largest investments in dollars were in life sciences (35%), internet/apps (20%), software (15%) and financial services (16%).
“Although the year started slowly for investments, TCA finished strong in 2016. Additionally, we started a new syndication network to build better deals with great companies regardless of geography,” said Jeff Draa, 2017 Chairman of Tech Coast Angels. “While the diverse experience of our over 300 members helps us as a network to invest with confidence in a wide range of industries, the amount of solid expertise and knowledge also greatly benefits the companies in which we invest, guide and mentor. Together, that formula has helped us achieve results in liquidity events that surpass the averages for other angel groups.”
TCA also participated, along with CommonAngels from Boston, in research that was published in a joint study by Harvard Business School and MIT last calendar year, which may be the first quantitative analysis showing that companies receiving angel funding achieve greater success in many areas (including employees, survival, patents granted, etc.) than companies who did not receive angel funding.
Access TCA’s full 2016 year-end report for more details. The report includes a summarization of 2016, the investment outlook for 2017, the list of companies added to our portfolio, and various infographics.
Largest Angel Network in United States Invests in 17 Innovative Companies Across Broad Range of Industries
IRVINE, Calif. – August 15, 2012 – Tech Coast Angels (TCA) raised more than $10 million of total investment in 17 innovative companies, including $4,571,000 of direct TCA investment, during the first half of 2012 via the group’s five networks (Los Angeles, Orange County, San Diego, Central Coast, and Inland Empire). The investment portfolio for the period spans a wide spectrum of young, innovative companies — from mobile advertising platforms and social loyalty marketing, to biopharmaceuticals and organic plant food.
Companies funded by TCA in the first six months of 2012 are: Active Life Scientific, Cadence Biomedical, Cashie Commerce, Cognition Therapeutics, Emerald Logic, ExtendCredit, Gemmus Pharma, GridTest Systems, H2scan, Hipmunk, Pagewoo, PetPlay, Social Annex, Social Rewards, ViroPan, Vokle, and Wasatch Microfluidics.
Compared to the same period in 2011, the group maintained a consistent level of support and funding to the same number of young, fast-growth companies (in 1H 2011, TCA invested in 17 companies for $4.4 million, with a total investment of $11.9 million).
“TCA is a valuable, receptive resource for promising companies. By providing early funding, mentorship and strategic support to early-stage entrepreneurs, particularly in a risk- and investment-averse business environment, we help foster innovation and entrepreneurship throughout our communities,” said Stephen Flaim, Ph.D., FACC, FAHA, chairman of Tech Coast Angels.
TCA also expressed its support for the recent rise of accelerators and incubators in Southern California. “We don’t view accelerators as competition; it’s quite the opposite. We embrace their place in the startup ecosystem,” continued Flaim. “Companies graduating from accelerators have fine-tuned product market fit, customer acquisition, go-to-market strategy and their business model. TCA is often a critical next-step funding source for these companies.”
“TCA looks forward to sharing capital and experience with more young entrepreneurs in the second half of 2012,” said Flaim. “Our members continue to explore opportunities to invest in and support diverse and exciting companies.”