Apply for Funding - Tech Coast Angels

Our mission is to be the BEST place for the BEST companies to raise their seed, bridge or early A-round funding

If your company has a strong team with a great defensible idea, has early traction and is set to grow, TCA is ready to invest up to several million dollars through our funds, individually or with our syndicate partners. TCA looks at investments in the United States and Canada although most of its investments are from companies in Southern California. Through its treaties with other angel groups and through its participation in the Angel Syndication Network, TCA has the ability to syndicate deals that require more capital.

Are you ready to get started? It’s simple! We use SPARKxyz as the deal management platform. After you hit APPLY below, click on the network to which you are applying as each network has a slightly different focus. If you have created a login and a venture profile on SPARKxyz, then you will be able to use this profile. After you hit APPLY you will see your venture profile. Please note you have an option of making the profile public or private on SPARKxyy based on your preference using the toggle switch on the top of your profile. Click on the profile and you will be taken to the TCA application questions. And then you are off and running. If you have not used SPARKxyz before, then you will create a sign in and then build your venture profile. It is that simple.

Apply Now!

By becoming a TCA Venture Group portfolio company, you will gain access to a range of exclusive services designed to support your growth and help you reserve capital:

AWS:
AWS helps startups bring their ideas to life through AWS Activate. As you build and scale your business, Activate credits grow with you to support your changing needs. If you’re an AWS Activate member, you may be eligible for up to $100,000 in credits to help offset your AWS bill.

Google Cloud:
Get access to startup experts, your Google Cloud and Firebase costs covered up to $200,000 USD (up to $350,000 USD for AI startups) over 2 years, technical training, business support, and Google-wide offers.

Microsoft Azure:
Microsoft for Startups Founders Hub provides free access to leading AI models through Azure, including OpenAI GPT-4, up to $150,000 in Azure credits, one-on-one guidance from Microsoft experts, and much more. Open to anyone with an idea—no funding required.

JP Morgan Workplace Solutions:
JP Morgan Workplace Solutions offers comprehensive solutions for managing employee equity plans, ensuring seamless administration and compliance across various global jurisdictions. TCA VG companies can enjoy the solution for free up to 100 shareholders, and a $1,000 implementation fee waived and

HubSpot:
HubSpot delivers a comprehensive suite of marketing, sales, customer service, and CRM software, along with the necessary methodology, resources, and support for business growth. TCA VG companies enjoy a discount up to 80% off.

Ramp:
Ramp is a corporate card and expense management platform that offers startups automated savings and financial insights. They provide startups with no-fee cards and various cashback rewards. TCA VG companies can enjoy a $1,000 bonus.

Clerky:
Clerky provides $4,000 off their lifetime package to assist startup founders in securely managing their legal paperwork.

Join TCA Venture Group and take advantage of these valuable resources to accelerate your startup’s success.

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Investment Criteria:

Mostly US based, CA preference
Strong and resourceful management team with impeccable integrity
Solution to a compelling business problem
Large identified market opportunity
Defensible business model / proprietary technology

Sustainable competitive advantage
Some level of market validation or traction
Ability to attract future funding
Credible exit potential

The majority of our past investments have been in companies located in California. However, we will consider ANY startup, seed stage company, and growth company located in the US or Canada, with traction and a reasonable valuation based on meeting the other criteria.

Ventures That We Seek

A Strong Management Team

We expect the entrepreneur to explain the relevant experience and domain expertise of your team. If the team is incomplete, we expect you to recognize who is needed to round out the team.

Technology that solves pressing needs

TCA defines technology broadly in many industries, including Hardware, Software, Digital Media, Consumer Products and Services, Financial Services, Life Science, CleanTech and Industrial. Regardless of industry, a successful applicant must be able to demonstrate market validation of its technology. Ideally, the company will have revenue and a strong sales pipeline.

Market presence or niche dominance

You must demonstrate that you can achieve significant presence in a well-defined market or niche. The niche can be within an existing market (Curvafix which provides a unique orthopedic screw for bone fractures ); or it can be a new niche (e.g., Green Dot which provides banking for the uninsured).

High growth potential

This must be in either a developing market (e.g., Parcel Pending in the electronic locker space) or in an existing market. You must present a credible plan for achieving that growth, not a Chinese Glove Syndrome (“there are over a billion Chinese, we will sell 1% of them a pair of gloves at $20/pair, which gives us revenues of $200 million”) without supporting data to show how you would sell them

Sustainable competitive advantages

Some examples: a “blocking patent” (that can keep out competition); a vanity number (e.g. 1-800-WEDDING); a domain name (e.g., buy.com); “first-to-scale” advantage (i.e., show you already are the first company to achieve some scale in a new niche). Sustainable advantage can also be achieved by a combination of technology, supply chain lockup, unique processes and partnerships.

Exceptional return on investment.

Because TCA members assume a great deal of risk by investing in early-stage companies, applicants should be able to make a compelling case for a 10x or better return on investment within a defined period. Investments that are expected to require no more funding than the current round are especially valued as are those that were able to use grant capital and other non-dilutive funding.

Use of Funds

TCA members look for opportunities where the capital sought will take the company to the next level, and materially increase its valuation. TCA investments often bridge the gap between proof of concept to a larger angel or VC round. A company must be able to demonstrate how it will use members’ investment to complete at least some of the following:

Proof of Concept
Prototype of its product or technology
Patent filing (for broad patent)
Product development
Market research
Product launch
Major contract or customers
Management team
Reduce other investment risks

Screening And Evaluation

Screening is an important part of the TCA funding experience. Each year, members of TCA look at and evaluate more than 1000 companies. Many of those companies then apply online to our screening process. Approximately 25 percent of these companies make it to the screening process and 25 percent make it into due diligence. Although each year varies, we typically fund 30-40 new ventures per year plus a similar number of existing portfolio companies which are seeking additional growth capital.

1.

Web Application

The first step in entering the TCA funding process is our online application. This process includes filling out an application with an overview of your company, including a summary of your financials. You’ll also upload an investor PowerPoint presentation.

2.

Initial Review

TCA staff and industry-specific investor panels perform an initial screening of the application to ensure it is within our scope of interest. If you pass the initial review stage, you will be invited to present at a pre-screening.

3.

Pre-Screen Presentation

Each panel’s prescreening process varies, but the general concept is an elevator pitch between 8 and 15 minutes, followed by Q&A. The prescreen presentation is given to a small group of TCA members who have domain expertise in your technology or market on a web conference call or at a separate meeting. The purpose of this pre-screening meeting is to determine if you are ready to present to the larger group, and give you constructive feedback to improve your presentation. You’ll receive feedback, and if you pass the pre-screen, you’ll be invited to present at a screening session. Of note is that TCA has both general prescreens as well as specialized medtech prescreens.

4.

Screening Presentation

Typically three to four companies present at a bi-monthly screening sessions. This consists of fifteen minutes PowerPoint presentation and fifteen minutes of questions and answers. After each presentation, TCA members discuss whether there is interest to move forward into due diligence. The entrepreneur is given feedback regardless of outcome. Presentations are usually videotaped so that members who are not present can participate later online on our member-only secure website. The goal of a screening session is to get significant interest from TCA members and attract a “deal lead”, who will coordinate the due diligence and be your point of contact throughout the due diligence and funding process. Funding can be through one of the TCA Funds as well as individual side car investments

5.

Due Dilligence

A due diligence team is formed based on the number of interested members who signed up during the screening. A deal lead coordinates the due diligence activities. Due diligence consists of verifying representations by the entrepreneur, speaking with customers, reviewing agreements and patents (if any), checking references, backgrounds, etc. The results of the due diligence process are posted on the TCA website (in the members-only section), and if the results are positive, the venture moves forward to funding through one of the funds and/or through side car investments.

6.

Monthly Lunch/Dinner Meeting (optional)

Companies that pass due diligence may present at monthly lunch/dinner meetings at most of the networks, introduced by the “deal lead”, who led the due diligence team. This enables the entrepreneurs to present to members who may not have seen their initial presentation. This is the final opportunity for entrepreneurs to garner enough interest from members to secure funding. Typically a signed term sheet is available when a company presents at this stage. Generally TCA members’ terms of investment follow “standard” terms for financings developed over the years by VCs and other sophisticated investors.

7.

Funding

Funding occurs after there has been enough interest generated and communication from the entrepreneur and deal lead. Members invest in deals through our funds and/or individually; however, everyone invests based upon the same term sheet. Typically, the minimum individual TCA member’s investment amount is $25,000. TCA funds typically invest a minimum of $100,000 per company.

Apply For Funding!

Entrepreneurs can apply for funding though TCAs by completing this Funding Application. Apply for funding here!

Some advice for completing the application:

Complete the application fully and thoroughly. We don’t charge entrepreneurs an application fee, but we expect everyone to treat the application process seriously.

Remember that TCA invests about 50% in start-ups headquartered in Southern California. The rest are spread around the United States and many of these are syndicated deals where another local angel group is the lead. But TCA does lead deals in other geographies.

Make sure that your application reflects the traits that TCA seeks in an investment to the greatest extent possible.