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“The Startup Stakes”
An Early Stage Company Thoroughbred Race




                   “The Startup Stakes”
                 ©2013 Tech Coast Angels
“The Startup Stakes”
Angel investors and other early stage investors
might well consider startup company investing a
“horse race”:

1.   The   “investment” is their “Bet”.
2.   The   “management” is the “Jockey”.
3.   The   “company” is the “Horse”.
4.   The   target “market” is the “Horse Race”.

This presentation considers the “Startup Stakes”,
an early stage company thoroughbred race, and
strategies used to hopefully “win, place or show.”

….and THEY’RRRRRRE OFF!


                          “The Startup Stakes”
                        ©2013 Tech Coast Angels
…some
investors
bet on “the
Jockey”…

                “The Startup Stakes”
              ©2013 Tech Coast Angels
Betting On “The Jockey”
These investors consider
“the Jockey” may be more
important than “the Horse”
or “the Race”.




                    “The Startup Stakes”
                  ©2013 Tech Coast Angels
Betting On “The Jockey”
Founder(s) past successes (exits)
Team’s experience & work history
Success-to-date running company
Investor’s “gut feel” for team




                       “The Startup Stakes”
                     ©2013 Tech Coast Angels
…some
investors
bet on “the
Horse”…

            “The Startup Stakes”
          ©2013 Tech Coast Angels
Betting On “The Horse”
These investors consider
“the Horse” may be more
important than “the
Jockey” or “the Race”.




                “The Startup Stakes”
              ©2013 Tech Coast Angels
Betting On “The Horse”
Company product or service
Intellectual property of company
Company partners or relationships
Reputation of company in market




                    “The Startup Stakes”
                  ©2013 Tech Coast Angels
…some
investors
bet on “the
Race”…

            “The Startup Stakes”
          ©2013 Tech Coast Angels
Betting on “The Race”
These investors consider
“the Race” may be more
important than “the
Jockey” or “the Horse”.




                “The Startup Stakes”
              ©2013 Tech Coast Angels
Betting On “The Race”
Invest in one particular market segment
Software, Hardware, BioTech etc.
Or consumer, enterprise, media products etc.
Investor’s unique experience in market
Investor may see market trends that favor bet




                     “The Startup Stakes”
                   ©2013 Tech Coast Angels
…so, what is
the correct
“betting
strategy”?


             “The Startup Stakes”
           ©2013 Tech Coast Angels
What Is Correct “Betting Strategy”?
  No “one” absolutely correct “investing strategy”.
  Strategy as “unique” as each investor/investment.
  Diversification/portfolio of “bets” should increase odds.
  Leveraging other investor’s knowledge/due diligence should increase odds.


…but sometimes, even with a seemingly great Jockey,
riding a terrific Horse in a huge Race… REMEMBER:




                                  “The Startup Stakes”
                                ©2013 Tech Coast Angels
…most
startups
FAIL!

BUT…

             “The Startup Stakes”
           ©2013 Tech Coast Angels
…someone
will WIN!



              “The Startup Stakes”
            ©2013 Tech Coast Angels
Worst case,
there’ll
always be
ANOTHER
race!



                “The Startup Stakes”
              ©2013 Tech Coast Angels
Who are the Tech Coast Angels?

Tech Coast Angels, www.techcoastangels.com, the largest angel investor
network in the United States, provides funding and guidance to more
early‐stage, high‐growth companies in Southern California than any other
investment group. Since its inception in 1997, TCA members have focused on
building valuable companies, personally invested more than $100M, and
helped portfolio companies attract more than $1B in additional capital, mostly
from venture capital firms.

TCA members give companies more than just capital; they also provide
counsel, mentoring and access to an extensive network of potential investors,
customers, strategic partners and management talent.

TCA has more than 300 members, including its venture capital affiliates, in five
networks in Los Angeles, Orange County, San Diego, Westlake/Santa Barbara
and the Inland Empire.


                                    “The Startup Stakes”
                                  ©2013 Tech Coast Angels

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Startup Stakes: An Early Stage Company Race

  • 1. “The Startup Stakes” An Early Stage Company Thoroughbred Race “The Startup Stakes” ©2013 Tech Coast Angels
  • 2. “The Startup Stakes” Angel investors and other early stage investors might well consider startup company investing a “horse race”: 1. The “investment” is their “Bet”. 2. The “management” is the “Jockey”. 3. The “company” is the “Horse”. 4. The target “market” is the “Horse Race”. This presentation considers the “Startup Stakes”, an early stage company thoroughbred race, and strategies used to hopefully “win, place or show.” ….and THEY’RRRRRRE OFF! “The Startup Stakes” ©2013 Tech Coast Angels
  • 3. …some investors bet on “the Jockey”… “The Startup Stakes” ©2013 Tech Coast Angels
  • 4. Betting On “The Jockey” These investors consider “the Jockey” may be more important than “the Horse” or “the Race”. “The Startup Stakes” ©2013 Tech Coast Angels
  • 5. Betting On “The Jockey” Founder(s) past successes (exits) Team’s experience & work history Success-to-date running company Investor’s “gut feel” for team “The Startup Stakes” ©2013 Tech Coast Angels
  • 6. …some investors bet on “the Horse”… “The Startup Stakes” ©2013 Tech Coast Angels
  • 7. Betting On “The Horse” These investors consider “the Horse” may be more important than “the Jockey” or “the Race”. “The Startup Stakes” ©2013 Tech Coast Angels
  • 8. Betting On “The Horse” Company product or service Intellectual property of company Company partners or relationships Reputation of company in market “The Startup Stakes” ©2013 Tech Coast Angels
  • 9. …some investors bet on “the Race”… “The Startup Stakes” ©2013 Tech Coast Angels
  • 10. Betting on “The Race” These investors consider “the Race” may be more important than “the Jockey” or “the Horse”. “The Startup Stakes” ©2013 Tech Coast Angels
  • 11. Betting On “The Race” Invest in one particular market segment Software, Hardware, BioTech etc. Or consumer, enterprise, media products etc. Investor’s unique experience in market Investor may see market trends that favor bet “The Startup Stakes” ©2013 Tech Coast Angels
  • 12. …so, what is the correct “betting strategy”? “The Startup Stakes” ©2013 Tech Coast Angels
  • 13. What Is Correct “Betting Strategy”? No “one” absolutely correct “investing strategy”. Strategy as “unique” as each investor/investment. Diversification/portfolio of “bets” should increase odds. Leveraging other investor’s knowledge/due diligence should increase odds. …but sometimes, even with a seemingly great Jockey, riding a terrific Horse in a huge Race… REMEMBER: “The Startup Stakes” ©2013 Tech Coast Angels
  • 14. …most startups FAIL! BUT… “The Startup Stakes” ©2013 Tech Coast Angels
  • 15. …someone will WIN! “The Startup Stakes” ©2013 Tech Coast Angels
  • 16. Worst case, there’ll always be ANOTHER race! “The Startup Stakes” ©2013 Tech Coast Angels
  • 17. Who are the Tech Coast Angels? Tech Coast Angels, www.techcoastangels.com, the largest angel investor network in the United States, provides funding and guidance to more early‐stage, high‐growth companies in Southern California than any other investment group. Since its inception in 1997, TCA members have focused on building valuable companies, personally invested more than $100M, and helped portfolio companies attract more than $1B in additional capital, mostly from venture capital firms. TCA members give companies more than just capital; they also provide counsel, mentoring and access to an extensive network of potential investors, customers, strategic partners and management talent. TCA has more than 300 members, including its venture capital affiliates, in five networks in Los Angeles, Orange County, San Diego, Westlake/Santa Barbara and the Inland Empire. “The Startup Stakes” ©2013 Tech Coast Angels