Annual Report 2022 (Tech Coast Angels)

Summary

• Tech Coast Angels invested $15.4 million across 41 companies in 2022, including 21 new portfolio companies, bringing total capital invested since 1997 to $270 million in 526 companies.p.4
• The network realized a record 13 exits and 10 shutdowns in 2022, sustaining a cumulative multiple of 6.4x on all historical outcomes since 1997 and an IRR of 25.2%.p.10
• Life Sciences was the largest investment sector in 2022, representing 41% of capital deployed and 54% of funded companies, followed by Software at 37% of capital.p.5
• Chapter funds contributed $5.2 million in capital alongside $10.2 million from direct individual angel member investments across 26 deals.p.20
• Following the spin-out of the San Diego chapter as NuFund Venture Group and licensing additions of Pasadena Angels and MEDA Angels, TCA ended 2022 with 410 members.p.2
• Investments outside Southern California expanded to 51% of dollars and 54% of deals in 2022, supported by virtual due diligence and the Angel Syndication Network.p.18

Key insights

1. Since inception in 1997, TCA has generated a 6.4x multiple and a 25.2% IRR across 106 exits and 141 shutdowns, with 279 companies remaining active.p.10
2. The median pre-money valuation across all TCA deals increased to $10 million in 2022 from $8.0 million in 2020 and 2021.p.26
3. Seed stage investments accounted for 68% of deals and 76% of capital invested in 2022.p.23
4. Historical exit analysis indicates that the largest exits occur after 5 years or more, whereas most shutdowns happen between 2 and 5 years after initial investment.p.11
5. Preferred Equity and SAFEs accounted for 50% and 32% of 2022 investment capital, respectively.p.24
6. Women CEOs led 20% of the companies funded in 2022, while non-white CEOs represented 29% of funded companies.p.15
7. TCA members held a board seat or observer seat in 31% of the 2022 funded portfolio companies.p.25