Our total investment for the year was the fourth highest since TCA was founded in 1997. TCA had five exits in 2017:

2 acquisitions (WeGoLook and AnyMeeting)

1 buyout after an acquisition (MaMoCa)

2 companies that became public (Savara and Dthera Sciences); Savara had previously set a record for TCA investment - $6.6 million -- so this was good news for many TCA members This brings the total exits since TCA’s inception in 1997 to 70. Of the 351 investments TCA has made since its founding, 54% are still active. Investing equal amounts across TCA’s entire portfolio would have yielded a return of 312% of the initial investment. Counting the highest price achieved after IPOs would increase TCA’s return to 482%. This compares to 250% benchmark for angels. Tax benefits from the writeoffs not included.

2017 was another strong year for Tech Coast Angels (TCA):

TCA invested $14.2 million in a total of 43 companies across a diverse mix of indus tries -- showing that TCA continues to invest in both tech and non-tech companies

Life Sciences was the largest sector, followed closely by Software and Internet/Apps

Our 300+ 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. Of new companies added to the portfolio in 2017, Life Sciences was 50%.

TCA extended its Angel Syndication Network (ASN) to share the best deals for deal syndication among 40+ prominent angel groups (up from 25+ last year). Each angel group nominates their best deals to share with other angel groups for syndication. Each month, ASN hosts a “virtual” web presentation. The live meeting occurs within a state-of-theart facility (UCI Applied Innovation’s The Cove facility) with multiple cameras and microphones recording attendee interaction and deal deliberation. 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. So far, 50% of those presenting have received additional funding (total of $5.2 million). Collectively, the angel groups participating in ASN represent over 1,500 angels, and over $1 billion in direct investment.

This greater syndication activity through ASN has shifted the geographic mix to more outside of Southern California.

Traditionally, the mix has been 85% - 90% in Southern California -- with the assumption that companies do better when TCA’S members can be actively involved in mentoring and governing

With ASN, TCA is seeing more good deals that have strong support and local involvement by other prominent angel groups. Thus new investments outside Southern California rose to 37% in 2016 and 28% in 2017

This also has been influenced by the investments of TCA’s ACE Fund which have been 65% outside SoCal in the most recent fund.

The source reports 70 exits since inception and 351 investments, with 54% still active. It describes a 312% equal-weight portfolio return, increasing to 482% if the highest prices after IPOs were used. Tax benefits from write-offs are excluded.

TCA funding is more likely when initial products/services are already de veloped and there is evidence of customer traction. 69% of 2017’s investments were in companies in revenue and those seeking expansion capital. This trend is driven by:

Companies are launching products/services earlier with MVPs (minimum viable products) before seeking investment

Lower startup costs (due to technology) allowing friends and family funding to take companies further in terms of risk reduction

Investors at this later stage of the investment cycle expecting companies to be closer to breakeven in order to survive the inevitable downturn coming

TCA’s investment focus continues to be on early stage companies.

The vast majority of investments in 2017 were seed/pre-Series A, including bridge funding to either seed equity or Series A

The mix is similar to 2016, although there were fewer post-Series A rounds in 2017

Most investments in 2017 were either Preferred Equity or Convertible Debt/SAFE (that converts into Preferred Equity).

However, the number of common equity deals increased from previous years (driven by some special circumstances and not likely a longer-term trend)

60% of deals were Convertible Debt -- more than in 2016

Valuations at time of TCA investment were similar in 2017 compared to 2016.

69% of TCA’s investments in 2017 were in companies with valuations below $6 mil lion, compared to 70% in 2016

In 2017 there were no deals valued over $20 M. This occurred in 2016 when Savara took investment just before it went public