*NEWS: A Very Good Year For Tech Coast Angels So Far. Two Exits Announced Already…
It’s been a good year for Tech Coast Angels (TCA), one of the world’s largest angel networks, based here in Irvine.
It recently announced that some of its members saw an 80% IRR with Parcel Pending’s recent acquisition. That company, an Irvine provider of lockers for the management of packages, perishable food and the like, was acquired by Neopost, with HQ in France, for more than $100 million. See related story here.
And, more recently, it saw a high return, (15x), when Hub Group acquired CaseStack, with HQ in Santa Monica, for $255 million. It was TCA’s sixth highest exit.
Parcel Pending Exit
TCA’s original funding round of $1.25 million in 2014 was unusual in that it went through due diligence and funding in about half the time, and was twice the amount that members typically invest.
TCA members were “extremely impressed” with the leadership and experience of Parcel Pending’s CEO, Lori Torres, according to a TCA press release.
She had extensive property management of a $1 billion real estate portfolio; she had invested some of her own money; and she was an “interesting mix of strong competence and a willingness to understand the difference between the corporate world and entrepreneurism.”
“Torres came to us with a great idea for package delivery in multi-family housing,” Grant Van Cleve, chairman of TCA’s board of governors and co-deal lead with Hans Imhof, said in the release. “And she had put her own money and insight into developing an impressive prototype. Imhof and I provided a tag-team of experience and energy. We were able to study the opportunity and circulate a report that led to a large round in a quick period. There was a real sense of partnership with Torres that let us come up with a win-win deal in good time.”
CaseStack’s software provides supply chain management services, including warehousing, transportation and software to consumer packaged goods companies.
Hub Group is in the freight transportation management industry.
“CaseStack had created a SaaS model that was a perfect match for customers–and creating customers–well before SaaS was a trend,” Bill Collins, co-deal lead and a TCA long-time member, said in a separate press release.
CaseStack’s Series A in 2003 raised $470,000 in 2003. The company went through additional funding rounds over the 15-year period before acquisition.
It also spun off another company, SupplyPike, which has an annual revenue of $2 million. The initial investors benefited from that acquisition also.
The average angel investment-to-liquidity time is about seven years. Although CaseStack continued to grow and scale for 15 years between investment and sale – including topping Deloitte’s Fast50 list – this deal was “an exercise in patience” for TCA investors.
“(The CEO) inspired confidence and showed fortitude,” Collins said in the release. “Sometimes investors don’t believe founders can go the distance, but (he) is unique: he has the right mix of passion, the insight and the leadership skills.”
More About Tech Coast Angels
TCA is one of the largest and most active angel investor networks in the nation. It’s a leading source of funding for seed-stage and early-stage companies across all innovation industries in SoCal.
TCA members are accredited investors who individually invest in startups.
As founders and executive-level business leaders, TCA members provide companies with more than just capital. They also contribute counsel, mentoring and access to an extensive network of investors, customers, strategic partners and management