La Jolla Nonprofit Host Workshops for Start-Ups Looking for Funding

, a La Jolla-based nonprofit that helps science and high-tech start-ups in the region, is holding a series of workshops in March that will focus on funding.

The first one, March 2, at the Sanford Burnham Medical Research Institute, will explain how angel investment works, what investors look for in a funding application, and how to apply for funding. Registration is $45 or $65 at the door. The workshop is being presented in partnership with the San Diego Tech Coast Angels and Procopio, Cory, Hargreaves & Savitch.

“The target audience is anyone who is either starting or in the process of starting a company and is looking for venture capital to start a business,” said David Barach, who has been involved with the Tech Coast Angels for 15 years and is one of the featured speakers.

“It will be about teaching about the angel capital process, what we invest in, how we negotiate, the whole process,” said Barach, a business adviser to small- to medium-size companies.

Angel investors are usually wealthy individuals who invest their own money in growth industries and target early stage companies. “We’re former CEOs, heads of company and professionals who have been successful in various areas and are now looking at investing and providing guidance to entrepreneurs,” said Barach, who has held various senior management roles in wireless communications, software IT, hardware and medical and health sciences.

Tech Coast Angels is the nation’s largest angel investor group with five regional networks in Southern California, including San Diego. The investment process begins when companies submit their business plans to the Tech Coast Angels’ website, techcoastangels.com. Companies that meet investment criteria are invited to present their plan at screening sessions.

The other speakers are Ralph Mayer, former chairman of the Tech Coast Angels’ board who has founded and managed software companies and Roger Rappoport, a partner with Procopio, Cory, Hargreaves & Savitch, which has offices in San Diego and Carlsbad.

Linda Wells, CONNECT’s program manager, said angel investment has been critical for start-ups during the slow economy. “Because of the way the economy is, VCs [venture capitalists] are not funding companies. Angels are becoming a bigger deal. They’re the next people [start-ups] would go for funding besides family and friends,” she said.

CONNECT will host three other funding-related workshops in March.

• March 15,  “Preparing for Investment,” in partnership with Cooley LLP. Presenters will discuss capital investment issues for emerging companies and how best to structure their companies before approaching potential investors.
• March 22, “The Employee-Ownership Alternative—Building the Company You Want,” in partnership with the Beyster Institute at the Rady School at . Presenters will discuss the benefits of sharing ownership equity with employees.
• March 30, “The Art of the Term Sheet,” in partnership with Procopio, Cory, Hargreaves & Savitch. Presenters will discuss the anatomy of a term sheet for bridge financing, angel investment, venture capitalist funding.

To check for time and locations of these events, which are part of CONNECT’s FrameWorks workshops, visit the nonprofit at connect.org.