Richard Morganstern

Tech Coast Angels (TCA) is the largest angel investor group in the United States. Its members provide funding and guidance to more early-stage, high-growth companies in Southern California than any other investment group. TCA members invest in companies in a wide range of industries, including the life sciences, biotech, IT, services, retail, Internet, financial, software, media, consumer products and tech startups. TCA members give companies more than just capital; they also provide counsel, mentoring and access to an extensive network of potential investors, customers, strategic partners and management talent. Members have invested over $120 million in over 200 companies. These portfolio companies have gone on to attract over $1 billion in additional investment capital. Last year over 600 companies applied to TCA for funding and 17 were funded. To qualify as a portfolio company, a prospective firm must be in a market opportunity sufficiently large to create a business with at least $50 to $100 million in annual revenues, management (not necessarily a complete team) with relevant and successful experience, and an exit strategy for the investors. The Tech Coast Angels is focused on seed-stage companies with high-growth potential, strong management teams, defensible business plans, proprietary intellectual property, and large target opportunities. The group typically invests between $100k-$500k and will lead syndicated deals up to $2 million. TCA is an equity investor and like other early-stage investors, after investing expects to hold a minority position of between 20-35% in a company. The TCA funding process can take as little as 30 days, but more typically requires 60-90 days. 78% of members have run startups, and invest in an average of 10 startups each. TCA has more than 300 members, including its venture capital affiliates, in five networks in Los Angeles, Orange County, San Diego, Westlake/Santa Barbara and the Inland Empire. Tech Coast Angels (TCA) created the Angel Capital Entrepreneur Funds I and 2 (ACE FUND) as an investment opportunity to both accredited individuals and institutional investors. ACE Fund II is now closed, but TCA anticipates opening ACE Fund III sometime in 2015.