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.