“We invest across most industries, but so far our success rate has been highest in Financial Services, Life Sciences, BTB and Cleantech/Industrials sectors -- all of which have realized over 60% success rates.” - John Harbison, Tech Coast Angels Chairman
Irvine, Calif. (PRWEB) August 30, 2016
Tech Coast Angels (TCA) today revealed that its performance record is better than the average angel investment in nearly all categories, as compared to an extensive study of returns prepared by Dr. Rob Wiltbank and Professor Wade Brooks for Willamette University and the Angel Resource Institute (ARI) earlier this year. TCA based its 3.3x return as follows:
If a TCA member had invested $25K in all of the network’s 305 investments ($7.7 million), s/he would have so far:
- Already realized $12 million in cash liquidity events;
- Taken $2 million of tax-deductible write-downs; and
- Still have $4.1 million of active investments, which, if the average performance is same as earlier exits/write-downs, would provide an additional $13.6 million of cash realized
…all of which implies a potential 3.3x overall return (not counting tax benefits).
The 3.3x in total investments return surpasses the 2.5x average as listed in the ARI report angel investment averages, as well as in earlier studies. TCA’s IRR (Internal Rate of Return) of 26% and Hold Period of 4.3 years compared to ARI’s measured average of 22% and 4.5 years, respectively. TCA’s percentage of exits returning less than 1x is marginally better at 68% (the ARI report is 70%). For more information, please visit https://www.techcoastangels.com/performance/.
Of the 305 investments made by TCA since its inception in 1997, 162 (53%) are still active. There have been 64 exited investments, including 45 that returned at least 100% of the investor’s capital—and 12 returned between 5x and 139x. For a list of TCA exits since 2000, please visit https://www.techcoastangels.com/exits/.
“We invest across most industries, but so far our success rate has been highest in Financial Services, Life Sciences, BTB and Cleantech/Industrials sectors -- all of which have realized over 60% success rates,” said John Harbison, TCA Chairman. “Software is close behind with a 45% success rate. We’ve had two home runs so far with returns of over 110x, and another at 70x.”
About Tech Coast Angels:
Tech Coast Angels (TCA) is one of the largest angel investment groups in the US. The group comprises over 300 angel members with experience spanning all aspects of successful leadership in almost every industry in five networks that encompass Southern California. TCA is the leader in providing funding, guidance, mentorship and leadership experience to early-stage, high-growth, exciting companies in Southern California. The most recent Halo Report rated TCA as #2 nationally in number of funded deals. A recent analysis by CB Insights ranked TCA #1 out of 370 angel groups on “Network Centrality” and #5 overall in “Investor Mosaic.”
Since its founding in 1997, Tech Coast Angels have invested over $176 million in more than 300 companies and have helped attract more than $1.5 billion in additional capital/follow-on rounds, mostly from venture capital firms. For more information, please visit http://www.techcoastangels.com.
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