Our total investment for the year was the fourth highest since TCA was founded in 1997. Our angel network also had six exits, including five acquisitions (Retrosense Therapeutics, Clearcare, WeGoLook, Hipmunk and HitFix) and one optional exit (in grandPad). This brings the total exits since the network’s inception in 1997 to 68. Of the 335 investments TCA has made since its founding, 56% are still active. If the remaining active investments yield similar outcomes to that of the 68 realized, investing equal amounts across TCA’s entire portfolio would yield a return of 333% of the initial investment -- that is higher than the average of 250% for other Angel Groups. Counting the highest price achieved after IPOs would increase TCA’s return to 441%.

2016 was another strong year for Tech Coast Angels (TCA). We invested $14.1 million in a total of 55 companies across a diverse mix of industries in 2016 -- showing that we continue to invest in both tech and non-tech companies:

Our 318 members, with their extensive and broad industry experience, help us invest with confidence in this diverse range of industries, which has always been part of TCA’s DNA. The largest industries by dollars invested are life sciences, software, internet/apps and financial services:

TCA launched the Angel Syndication Network (ASN) to share the best deals among 25+ prominent angel groups for deal syndication. The angel group leaders are either presidents or syndication chairs. Each angel group nominates their best deals to share with other angel groups for syndication. Each month, ASN hosts a “virtual” web presentation of a live meeting with multiple cameras and microphones throughout a state-of the art meeting room recording the interaction at UCI Applied Innovation’s The Cove facility. The purpose of these meetings is to help fill a round, expedite a closing, and save the CEO from extended road shows. The screening sessions are open and viewed by accredited investors from these respective groups. Collectively, the angel groups participating in ASN represent over 1500 angels, and over $1 billion in direct investment

For perhaps the first time ever, there is now quantitative analysis showing the impact of angels. Harvard Business School and MIT published a study based on TCA data and one other angel group that shows funded firms look more successful than those that pitched to the angel group but did not receive it:

20% - 25% more likely to survive for at least four years

9% - 11% more likely to undergo a successful exit (IPO or acquisition)

16% - 19% more likely to have either reached a successful exit or grown to 75 employees by the end of sample period

40% more employees (16 - 20 people)

16% - 18% more likely to have a granted patent

Growing faster as measured through web traffic performance

Higher likelihood of obtaining follow-on financing

10% - 17% higher likelihood of successful exit

Of 335 investments since inception, the report says 56% remained active and 68 exits had occurred.

Its 333% portfolio-return illustration assumes the remaining active investments achieve outcomes similar to realized investments. The 441% alternative uses the highest prices achieved after IPOs. These are conditional source illustrations, not realized returns.

TCA’s investment focus continues to be on early stage companies. Most companies are already in revenue, and the vast majority are seed/pre-Series A: