Tuesday, August 30, 2016
Tech Coast Angels: We Have Higher Returns Than Angel Averages
The Tech Coast Angels, Southern California's biggest angel investment group, says its performance record and returns on its investments are higher than the average angel, in nearly all categories, based on a new academic study. According to the TCA, it had a 3.3x return on its investments, based on an analysis prepared by Dr. Rob Wiltbank and Professor Wade Brooks for Willamette University and the Angel Resource Institute (ARI). The TCA said, if a TCA member had participated in all of its 305 investments, with a $25,000 investment in each of the companies in those investments (a total investment of $7.7M), that member would have received $12M in cash liquidity, have taken $2M in tax deductible write-downs, and still have $4.1M in active investments. The TCA said that compared favorably with the 2.5x average of all angels. Among the TCA's highest profile exits have been the IPOs of Mindbody, CytomX, TrueCar, Vital Therapies, Trius Therapeutics, and Green Dot. The company said the highest returns have been two companies with a 110x return, and another at 70x.