Angel Profile

The Angel Profile is a regular feature of Angel Investor News. It offers a thumbnail sketch of angel investors across the country who share their tips and experience about how to invest successfully.

Who: Ken Deemer

Where: Los Angeles

Experience: Doing his own deals for the last five years. Started 20 years ago with a Venture Capital partnership but VC firms have grown so big that they're not interested in investing in early-stage and start up companies in which he prefers to invest.

How:  Worked as an engineer in telecommunications for Hughes Aircraft. Earned a MBA and became a marketing manager in an early-stage Silicon company. Moved into Venture Capital in the early 1980s. Later began consulting with smaller companies and investing some or taking stocks for services. With no particular investment plan helped found Tech Coast Angels to collaborate on deals with other private investors. Serves as the chairman of Tech Coast Angels which has grown to 200 members.

How Many Deals:  Individually done a dozen deals - one of the most successful was e-Toys - now out of business. From e-Toys investment learned that a virtual retailer must have a brick-and-mortar presence. Prefers to invest in high-tech, software and computer services because of his engineering background.

Amount of Investment: Through the Tech Coast Angels typically invest $500,000-$1 million. TCA often co-invest with other partners up to $5 million.

Tips for Angels:  Angel investing is not something to dabble in. Must treat it seriously to be successful. Recommends that angels should invest in a portfolio of companies to protect against losing money on some deals which should be expected. Has portfolio of 10-12 deals at any one time. Believes many good buys for investing in companies since their value is low. Sees the economy continuing to grow and offering many future private investment opportunities.

Contact: www.techcoastangels.com

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