General

Orange County has a proud history of technological and commercial leadership that represents a substantial opportunity for entrepreneurs and investors alike.  The creation of OC Cove Fund I, LLC is intended to provide startup funding for promising new ventures that emerge from the Orange County ecosystem.  The Fund is headquartered in the Cove at UCI, a major research university serving the Southern California community.  Our proximity to the university provides access to the most active innovation and technology cluster in the region, resulting in connection with the most promising local startups.

INVESTMENT GUIDELINES

Over a period of two to three years, OC Cove Fund I will invest no more than 10% of its capital per company among 20 to 25 seed stage companies that are either:

  • Based on intellectual property coming out of UCI, the Fund may also invest in companies based on any UC intellectual property however such investments are not anticipated to be significant in number

  • Formed and managed by investors and entrepreneurs associated with the UCI Applied Innovation, UCI faculty, students, staff or graduates

  • Having a relationship with Applied Innovation through being sponsored by an incubator/accelerator or angel group working with Applied Innovation

Fund Size and Sources

The focus of Cove Fund I is on technology and life science opportunities that are potentially rapidly scalable and where the initial funding will get the company to an important inflection point. Preference will be for companies with the majority of their operations in Orange County.  The Fund will be able to co-invest with local angel groups, incubators, and accelerators that have a relationship with Applied Innovation.  The maximum investment in an individual company is $250,000.

Cove Fund I raised a total of  $5.62 million from both private and institutional sources – funds to be drawn down as needed in three calls over a maximum of three years.  The minimum subscription amount was $45,000.  Subscriptions to the fund came largely from Orange County sources – successful entrepreneurs, local business people and others who have an interest building the Orange County entrepreneurship community.

Fund Structure

The OC Cove Fund I charter is to invest in companies that:

  • Are based on intellectual property coming out of UCI or the UC system; or

  • Are formed and managed by investors and entrepreneurs associated with Applied Innovation or are UCI faculty, students or graduates; or

  • Are sponsored by an incubator/accelerator or angel group that work with Applied Innovation.

Fund Strategy

OC Cove Fund I offers the investor the ability to invest in a carefully selected pool of UCI sourced companies with high growth potential that have been thoroughly vetted before investment and then subsequently guided by experienced investors/entrepreneurs (members of the Investment Committee) who will likely continue to serve as company board members or advisors. Equally important, the Fund will benefit the UCI community by providing a real world laboratory for students, faculty and staff to develop their entrepreneurial skills under the guidance of experienced, early stage investors.

Summary

OC Cove Fund I offers the investor the ability to invest in a carefully selected pool of UCI sourced companies with high growth potential that have been thoroughly vetted before investment and then subsequently guided by experienced investors/entrepreneurs (members of the Investment Committee) who will likely continue to serve as company board members or advisors. Equally important, the Fund will benefit the UCI community by providing a real world laboratory for students, faculty and staff to develop their entrepreneurial skills under the guidance of experienced, early stage investors.