Tech Coast Angels Has Record First Quarter 2017
Southern California’s local angel investment network, Tech Coast Angels, has reported a record $3.8M invested in Q1 2017. What’s especially great about this news is that 99% of that funding went to local companies in the Southern California region that includes Silicon Beach. The group, which has been investing for over 20 years, saw the most investment in dollars and companies in Q1.
As absurd as it may seem, investing 99% of the funding in local companies is a rarity for an angel network. Angel networks actually average 40% or less in local investment unless the angel network is directly tied to an incubator or accelerator. This is a rampant problem in major parts of the country, but obviously not Southern California. 93% of the funding was made in new companies.
The nine new companies were Buy It Installed, Carepoynt, Cherryvale Farms, Conectric, Echo Laboratories Inc., InvestED, Mobilize Solutions, OnRamp, and Tot Squad.
Nearly three-quarters (74%) of the dollars invested went into companies already in revenue, reflecting the trend of angel investments in companies with an already-developed minimum viable product and showing evidence of traction with customers.
“Today’s information shows the strength of our local entrepreneurial ecosystem and of TCA as a group,” said Jeff Draa, Chairman of Tech Coast Angels. “Unlike other angel networks who’ve reported a shift towards follow-on investing, and unlike our experience in 2014 and 2015 when the majority of our investments were in follow-on rounds, our Q1 2017 investments show a tremendous upsurge in new deals, reflecting strong excitement by our members about new opportunities.”
TCA also realized three exits in Q1 2017:
- Savara Pharmaceuticals (a pulmonary pharmaceutical company) announced it would become a public company (NASDAQ (SVRA)) through its merger with MAST;
- WeGoLook (an on-demand field services company) was acquired by Crawford & Co., yielding a return to TCA of 8x in less than three years;
- Everystory (a digital therapeutic company) repositioned itself as a publicly traded life sciences company Dthera Sciences — a digital therapeutic treatment for dementia
“TCA members are investing in early-stage businesses that they can help to succeed with far more than just financial support,” continued Mr. Draa. “Our members offer guidance, direction and connections in addition to investment capital.”