805AGTECH
The CA Central Coast has lots of interesting start up activity.
The primary way this activity is funded is some combination of:
Family and Friends
Individual Angel Investors
Angel Investor Groups
Venture Capitalists
Hybrids
Angel Investment Groups typically come in one of several forms:
SLO Seeds is the classic volunteer group. They meet regularly to hear pitches, and if a sufficient number of their members are interested in particular company, they form a committee to do due diligence – and then ultimately an LLC of those particular individual investors who commit to that specific investment. They monitor these investments but are largely hands-off investors.
Kern Ventures is similar, in that it is a collection of angel investors based in Bakersfield, CA (but including the central coast in its investment target area), but it has two full-time managing partners. The larger group still vets proposals, but their resources are pooled in a single fund managed by the partners. They too are largely hands-off once an investment is made.
Entrada Ventures in Santa Barbara is technically probably also an angel fund – but it is very well staffed and functions much like venture capital firms do in providing substantial management assistance to their portfolio companies.
Numerous venture capital firms make investments locally as well – though I am unaware of any locally based ones.
Then there is Relentless Management Group - an unusual hybrid. Relentless takes an equity stake in their portfolio companies and provides substantial hands on support – particularly in management, sales, and marketing. The technical founders are essentially “outsourcing” that part of the business to Relentless in exchange for equity. Thus, they are part investor, part consultant, part outsourced sales and marketing.
Well, now there is a new player in town: 805AgTech.
805AgTech’s mission is to create an ag tech entrepreneurial hub in Paso Robles. They plan to eventually have an investment fund like Kern Ventures and Entrada, but for now, they are building their ecosystem in a unique way.
805AgTech is deeply connected to the CA grower community. And to that community, they offer advisory services to assist growers with the sourcing, testing, implementing of tech solutions. Conversely, they are engaging with technology companies to assist them with marketing their solutions to the grower community. Each activity reinforces the other. And – once they have their seed fund set up – it will be used to nurture new tech companies targeting ag and/or assisting existing tech companies adapt to serve the needs of ag. Another hybrid – sharing some characteristics with Relentless – but with a different model.
It's early, so we do not know how well this model will work. But it has real potential. To keep an eye on this exciting new entrant follow them on LinkedIn or check them out at
Always searching,
Joel