Annual Report 2023 (Tech Coast Angels)

Summary

• TCA invested $10.9 million in 32 companies during 2023, including 18 new additions, bringing cumulative investment to $304 million in 544 companies since 1997.p.2
• Capital deployment was balanced between $5.7 million invested via annual network funds and $5.2 million from direct member investments.p.2
• TCA achieved a cumulative return multiple of 5.8x across all outcomes since 1997 with an internal rate of return (IRR) of 23.7%.p.2
• Life Sciences represented the largest sector by investment volume at 51% of total funding, while SAAS/Software/Data Analytics led single verticals at 32%.p.5
• Exits included the acquisition of unicorn DTx Pharma by Novartis for $1 billion, returning 18x to earliest TCA investors.p.11
• Geographic diversification expanded significantly, with 54% of deals and 59% of investment dollars allocated outside Southern California.p.21

Key insights

1. 1. Total capital invested dropped from $15.4 million in 2022 to $10.9 million in 2023 amid a broader market downturn.p.4
2. 2. Life Sciences exceeded half of TCA annual capital deployment for the first time, reaching 51% of total dollars invested.p.5
3. 3. Portfolio exits declined from 11 in 2022 to 3 in 2023, while shutdowns held flat at 8.p.13
4. 4. Capital allocated to companies with non-white CEOs reached 30% in 2023, increasing steadily from 18% in 2021 and 21% in 2022.p.16
5. 5. The Angel Syndication Network deployed $5.1 million across 10 screened companies during 2023.p.20
6. 6. Seed-stage rounds represented 66% of all deals and 57% of total dollars invested in 2023.p.26
7. 7. TCA member governance participation rose sharply, with board member or observer seats held in 66% of funded deals compared to 37% in 2022.p.28