This paper describes the Tech Coast Angels, an alliance of three angel networks in California. The investment process is described. Companies complete an online application. These are pre-screened by small groups of members with appropriate experience. The best applications go forward to an 'all hands' screening meeting. Any company which attracts an investor champion is then subject to detailed due diligence. Due diligence reports are made available to all members on the website. Once a term-sheet has been negotiated by the due diligence team and one member has agreed to invest, the company may present to a monthly investment meeting. Investment meetings in the three networks are scheduled on consecutive nights monthly, allowing qualified companies to present over 200 TCA members in one week.
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Payne et al. (2002) studied this question.
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