IRVINE, Calif., August 2, 2010 Tech Coast Angels (TCA), the largest angel investment network in the United States, today announced the Angel Capital Entrepreneurial Fund (ACE) 1, a unique fund giving both private and institutional investors the opportunity to access diversified, early-stage, game-changing entrepreneurial company investments that would otherwise be available only to experienced angel investors. According to Dave Berkus, Chairman Emeritus of Tech Coast Angels, “The ACE Fund opens a whole new world of exciting investment potential to investors in California. The Fund is designed from the investing members point-of-view. It incorporates many features that give members a chance to benefit from the collective wisdom of TCA at a small investment rate and with liquidity provisions and planned earlier returns than are generally offered in comparable funds. Equally important, it allows investors to diversify their portfolios. Plus, its beneficial to entrepreneurs as it simplifies their process of raising funds.
The Fund was created under the leadership of TCA Chairman, Richard Sudek, who commented, “The ACE Fund not only provides a range of unique features for investors, it also forwards our primary TCA goal making life easier for entrepreneurs. The fund will help innovative startup companies to get funded faster and potentially with larger rounds. It’s a true win/win.
The ACE1 Fund provides:
- A unique liquidity provision that allows for trading of shares among TCA members, the Fund itself and accredited investors allowing for an exit strategy in the event of hardship
- Operational expenses limited to one percent
- Carried interest of only 10 percent for non-TCA Fund investors
- A minimum investment of only $30,000, with one third upon signing and the balance called over two years
- Voting membership composed of TCA members receive the 10 percent carried interest
- Active investment period of only three years with no evergreen investment clause meaning all liquidity events are paid out immediately to members
Management of the ACE1 Fund is overseen by an elected Board of Trustees and potential investments are brought before the membership by an elected five-member Deal Committee. This structure assures that all members of the fund benefit from the investment experience of the committee, while still having the opportunity to vote on selections. The Fund provides for a total of 100 members divided into two membership groups:
- Voting members made up of active and inactive TCA members. Any investor wishing to actively participate in the Fund needs only to become a TCA member to qualify. (Please visit http://members.techcoastangels.com/members/memberapplication.aspx?action=new, or e-mail firstname.lastname@example.org.)
- Non-voting members made up of all other accredited investors. Non-voting membership allows accredited private and institutional investors to participate in the benefits of the Fund without the need for active, day-to-day interaction.
The ACE1 Fund will invest in a minimum of 10 entrepreneurial enterprises selected for their game-changing ideas, strength of management and market growth potential. A benefit of Fund membership is that TCA members actively support and mentor invested companies to lend experience and avoid pitfalls as the companies grow. The Fund should be attractive to entrepreneurs in that it will speed and simplify the process of seeking funding. For investors, the Fund provides an opportunity for diversification of their portfolios.
About Tech Coast Angels
Tech Coast Angels, https://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 https://www.techcoastangels.com, www.facebook.com/techcoastangels or twitter.com/techcoastangels.