Angel groups have grown significantly in the last decade, as more and more organizations have been established and more individual angels have joined the groups. Angel groups now exist every American state and Canadian province. In May of 2008, the Angel Capital Association listed 165 members. Recently the Angel Capital Education Foundation listed 281 Angel groups in 49 US states and Canada. The only state not represented was Louisiana. That number is now 282 with the addition of South Coast Angel Fund, which represents Louisiana on that list.

The term “angel” originated in the early 1900s and referred to investors who made risky investments to support Broadway theatrical productions. Today, the term “angel” refers to high-net worth individuals, or “accredited investors,” who typically invest in and support start-up companies in their early stages of growth.

Angel groups offer accredited angel investors the opportunity to invest in and help build successful companies – while also having a good time. Every group is different in terms of investment strategy and culture, but Angel groups offer interested investors a variety of benefits such as:

1. An expectation of a significant return on their investment.

2. A disciplined approach to investing imposed by a both the due diligence process and the diversity of expertise provided by a group of members with various backgrounds.

3. Lower risks by diversification of investments.

4. Social benefits in meeting and working with other successful individuals. Participation in the screening, due diligence or monitoring teams is an enjoyable, educational and rewarding experience.

5. A strong sense of satisfaction from aiding and mentoring entrepreneurs.

6. Investments Louisiana businesses may qualify for Louisiana Tax Credits such as the Digital Interactive Media Credits and other Louisiana incentive programs.

The Louisiana Innovation Summit (Inno)State will take place on October 21, 2009 in Baton Rouge. (Inno)State is an annual summit focused on the future of the innovation economy in Louisiana. (Inno)State brings together entrepreneurs, investors, companies who specialize in emerging fields, economic developers, business advisors, incubator directors, and others interested in the creation of an innovation economy in Louisiana.

South Coast Angel Fund will participate and support this year’s Innovation Summit by participating in a panel and presentation on the investment environment. Clayton White of South Coast will join national experts on risk capital as well as local venture and banking groups for a panel/presentation on the investment environment.

Join us at (Inno)State. To register or for more information, go to http://innostate.org.

Greater New Orleans Inc. is the regional economic development hub of the 10 Parish Region surrounding New Orleans, serving to coordinate, consolidate, and then catalyze economic development initiatives. The role of GNO, Inc. is to attract and retain businesses; advocate for policies to improve the competitive climate; and, ensure the availability of a high-quality workforce.

GNO, Inc. recently interviewed Clayton White and Choose Taurman, originators of South Coast. The interview was published in GNO Inc.’s Reg10n Review. Click here to read the published article.

Accredited Investors

Individual members of South Coast must be accredited investors. The federal securities laws define the term “accredited investor” in Rule 501 of Regulation D as a person who has individual net worth, or joint net worth with the person’s spouse in excess of $1 million at the time of the investment or has income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

South Coast Angel Fund

Complete the online application

SEC Information

The following information is provided at http://www.sec.gov.

The laws and rules that govern the securities industry in the United States derive from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. To achieve this, the SEC requires public companies to disclose meaningful financial and other information to the public. This provides a common pool of knowledge for all investors to use to judge for themselves whether to buy, sell, or hold a particular security. Only through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions.

The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. Here the SEC is concerned primarily with promoting the disclosure of important market-related information, maintaining fair dealing, and protecting against fraud.

Under the Securities Act of 1933, a company that offers or sells its securities must register the securities with the SEC or fid an exemption from the registration requirements. The Act provides companies with a number of exemptions. For some of the exemptions, such as rules 505 and 506 of Regulation D, a company may sell its securities to what are known as “accredited investors”.

One of the major sources of information on which the SEC relies to bring enforcement action is investors themselves — another reason that educated and careful investors are so critical to the functioning of efficient markets. To help support investor education, the SEC offers the public a wealth of educational information on their Internet website, which also includes the EDGAR database of disclosure documents that public companies are required to file with the Commission.

For more information, visit the U.S. Securities and Exchange Commission website at http://www.sec.gov.

Contact the South Coast Angels at: 

3810 Post Oak Ave.
New Orleans, LA 70131
504.342.4697

SOUTH COAST ANGEL FUND
info@southcoastangelfund.com

Benefits of joining South Coast

There are many benefits from South Coast membership. The order of priority may vary between members but all benefit from each of the following:

1. We expect a significant return on our investment. We only invest after an extensive due diligence indicates we have a good chance of getting 7-10 times our investment in 3 to 5 years.

2. Members benefit from a disciplined approach to investing imposed by the South Coast due diligence process and the diversity of expertise provided by a group of members with various backgrounds.

3. Members benefit through the diversification of investments provided through the committed capital fund structure.

4. Members enjoy meeting and working together. Participation in the screening, due diligence or monitoring teams is an enjoyable, educational and rewarding experience.

5. There is a strong sense of satisfaction from aiding entrepreneurs and the Gulf Coast economy. All investments will be in companies within a 3-hour drive of New Orleans, with some preference for Gulf Coast firms.

6. Investment in South Coast may qualify for Louisiana Tax Credits such as the Digital Interactive Media Credits and other Louisiana incentive programs.

What is required to invest?

1. Members make a capital commitment of $50,000 or more. The “cash in” is staged to coincide with the timing of investments, typically in increments of 10% of commitment made on a quarterly basis. Thus it may be several years before all of the commitment is “called.”

2. Additional “add on” investments can be made with almost any South Coast fund investment.

What is the fund’s investment philosohy?

The fund seeks a positive return on its investments, however South Coast members participate for other reasons including: 1) encouraging entrepreneurial companies and entrepreneurship; 2) economic development; 3) meeting and networking with entrepreneurs and entrepreneurial companies; and 4) providing assistance to, and/or mentoring, South Coast portfolio companies based on the member’s business and/or professional experience and network.

Based on the risk profile of an early stage equity investment, South Coast expects a return in excess of what would otherwise normally be available in the stock market. It is recognized that the time horizon, between the initial South Coast investment and a liquidity event for any individual portfolio company may range from five to ten years. South Coast makes every effort, however, to identify investments likely to provide early exit opportunities so that an earlier return might be available.

South Coast Members / Investors expect to be active in assisting and/or monitoring their portfolio companies and therefore South Coast is mostly interested in investing in companies located in Louisiana and the Gulf Coast (I-10 corridor) regions of Mississippi, and Alabama. Investments outside of an approximately 3-hour drive of New Orleans will only be made for an exceptional investment opportunity. South Coast focuses on early stage companies where a product has been developed, although not necessarily fully functioning, and where the principals and founders are highly committed.

All South Coast investments are made by the fund; with each member having his/her prorata share based on their percent of total fund allocated monies. Cash returns are not distributed until all committed funds have been paid in. Following that event, any exit by sale, IPO or other means of a portfolio company will result in cash out to members relative to their share of the total fund.

South Coast Angel Fund LLC

Contact Information

South Coast Angels

757 St. Charles Ave.
Suite 302
New Orleans, LA 70130
504.342.4697

SOUTH COAST ANGEL FUND INFORMATION

info@southcoastangelfund.com

The Fall of 2008 will mark the first membership round of the South Coast Angel Fund. Dedicated to the development of the Gulf Coast entrepreneurial ecosystem as well as to yielding superior returns to investors, The South Coast Angel Fund will provide seed and early stage equity capital along with advisory assets to high growth ventures in the Gulf Coast region.

Interested in becoming a South Coast Angel?  http://southcoastangelfund.com/white-paper-article-1/