Annual Report 2019 (Tech Coast Angels)

Summary

• Tech Coast Angels (TCA) grew total investment by 91% to a record $19.1 million across 52 companies in 2019.p.2
• Life Sciences was the largest sector, accounting for 36% of funded companies and 44% of total dollars invested in 2019.p.3
• New portfolio additions accounted for 32 companies and 57% of total invested capital in 2019.p.3
• TCA realized five exits in 2019, including returns of 31x, 19x, and 6.5x, achieving a historical multiple of 4.8X on all outcomes.p.2
• The median valuation of companies at the time of investment rose to $9.0 million in 2019 from $6.0 million in 2018.p.18

Key insights

1. Total annual investment has remained at or above $10 million for nine consecutive years from 2011 through 2019.p.4
2. Since inception in 1997, TCA has achieved 82 exits, experienced 110 shutdowns, and generated an IRR of 23.1% across 417 investments.p.6
3. In 2019, an unprecedented six companies received over $1 million each from TCA, led by Buy It Installed with $2.7 million.p.9
4. The Angel Syndication Network connects more than 50 angel groups representing over 1,500 angels and over $1 billion in direct investment.p.11
5. The implementation of annual chapter funds contributed $3 million to 2019 investments and targets due diligence decisions within 30 days.p.14
6. Companies generating revenue or seeking expansion capital accounted for 67% of TCA investments in 2019.p.15
7. Seed-stage deals represented 71% of companies and 55% of investment dollars in 2019, while bridge rounds fell to 2%.p.16
8. Convertible debt accounted for 43% of total dollars invested in 2019, while preferred equity represented 41%.p.17