Annual Report 2020 (Tech Coast Angels)
Summary
- Tech Coast Angels (TCA) grew total investment to a record $19.4 million across 64 companies in 2020, with membership reaching a record 469 angel investors.p.2
- Three annual chapter funds contributed $7.9 million of capital in 2020, participating in 44 of the 64 deals.p.14
- TCA added 42 new portfolio companies during the year, representing 75% of total dollar investments.p.3
- Life Sciences was the largest sector, accounting for 37% of companies and 45% of dollars invested in 2020.p.3
- Four exits were achieved in 2020, including Companion Medical (58x return), Beam Global (10x), Zentalis (8.2x), and Paradigm Diagnostics (1.4x).p.6
- Since inception in 1997, TCA has realized an overall 5.3x multiple on all outcomes with an IRR of 25.8% across 462 funded companies.p.6
- New investments outside Southern California rose to 55% in 2020, driven by remote due diligence and the Angel Syndication Network (ASN).p.13
Key insights
- Chapter funds shortened the due diligence process with a target fund decision timeline of 30 days.p.2
- Companion Medical delivered a 58x return upon acquisition by Medtronics, the fifth highest return in TCA history.p.6
- The Angel Syndication Network (ASN) connected over 60 prominent angel groups representing over 1,500 angels and $1 billion in direct investment.p.11
- ASN funded 11 companies in 2020, representing 44% of all screened opportunities.p.12
- Seed rounds comprised 63% of deals and 65% of investment dollars in 2020.p.16
- Convertible debt accounted for 46% of total investment and Preferred Equity represented 45% of total investment in 2020.p.17
- Median valuation across all TCA deals declined to $8.0 million in 2020 from $9.0 million in 2019, while median valuation for new companies rose to $6.5 million.p.19
Topics and entities
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