Tech Coast Angels

What is TCA?Why Might you Care?

What you need to know if you do.

What is TCA?

An Angel is an investor in a startup. Angels invest before Venture Capital and

after Friends, Family and Fools. TCA is the largest Angel group in the US

and has 5 groups in southern California. It is a dating service. It does not invest.

What is TCA?

300 members, in SD, OC, LA, Ventura and Inland Empire.

SD is largest group with >100 members and is the most interested in hardware/software.

SD also has a strong BioTech interest. Most members are NOT technical. Goal is to make BIG $$$$ on Exit

Why Might You Care?

One simple answer, You need $$$ for your startup.

So, You need $$ for your startup

There are no rules (no fixed criteria). He who has the gold, rules. Angels do not invest in ideas. You need

more than an idea. Raise $100K to $2M in $25K chunks.

So, You need $$ for your startup

Investments are not made in companies, they are made in

PRESENTATIONS.

Process

Apply via website Pre-screening Screening Due diligence (1 to 6 months) Dinner (5 times) $$$$$$$$$$$$$$$

Pre-Screen

Applications are reviewed monthly. Application are first screened to remove

perpetual motion machines and others that we think won't have a chance.

May get referral

Pre-Screen

Applications are reviewed monthly. Application are first screened to remove

perpetual motion machines and others that we think won't have a chance.

May get referral

Pre-Screen

Rejections due to us, application, applicant and “Can the applicant put on a good presentation at the screening next week?”

Presentation is informal Company can come back

More on rejection Lack of team (Who's the CEO? Can he

make this happen? Can they market this thing?)

Lack of experience Lack of communication skills. Lack of market knowledge. Unable to explain what in the hell the

product is!

Screening

Held a week after pre-screen. Presentation is formal. Goal is to get interested people to do due

diligence.

Diligence

If you are prepared, organized and anticipated questions (and have the answers), may be done in a month.

If not – IP status, Capitalization, Market,

Technology

Presentation Outline

Your background? Company's product/service? Description of technology Status of Technology (patents, demo) Market size, description and barriers. How you are going to market.

Presentation Outline

Exit – Who, What, When, How How much money you need and why. Are there mile stones that might be used

to effect funding options? What is your pre-money (How much is

your company worth today)

Presentation Pitfalls

Planting an idea that you then have to correct. (Very easy to do!)

Lack of organization. Assuming that the audience can read

between the lines. Although the audience has a technical

education assuming that it is technical.

Good Presentation

Covers the subject. Demonstrates the knowledge and

competency of the presenter (CEO). Presenter answers questions as if he

understands the question, is not surprised by the question and is the world's expert on it.

Presenter is coachable.

How Companies Fail

Suicide. Spend money foolishly. Believe that if 1 pregnant women can

have a baby in 9 months, 9 pregnant women can have a baby in 1 month.

Try to have a appearance of an established company without actually being established.

How Companies Fail

Create nationwide sales department (with no product to sell).

Buy stuff that a 'real' company needs, but it doesn't (yet).

Create employee handbook. Get nice write up in local paper (even

though it has no customers in town, in the country or product to sell).

Preparing yourself

Hang around business people. Attend meetings where business issues

are discussed. (They are interesting.) Listen to business people talk, the

questions they ask, the answers they give.

Develop a business vocabulary. Give presentations

TCA Events

Meet the Angels Quick Pitch

Entrepreneurial resources

Connect.org Commnexus C-Cat SDSU – Entrepreneurship MIT Enterprise Forum