Based in San Diego, CA, CEP is a Smaller Growth Equity firm that invests in B2B, Lower-Market SaaS businesses.
Core Investment Criteria
B2B software & software-enabled services
United States & Canada
$3M - 15M
~85%+ Gross; ~100%+ Net
$3M - 15M
Growth capital for scaling go-to-market
Liquidity to early investors / founders / employees of compelling businesses
Additional capital at existing terms to efficiently strengthen balance sheet
Small financings to bridge to larger raise or liquidity event
Fill out larger rounds referred to / by close relationships in our network
Flexible Deal Profiles
Where Does "Smaller Growth Equity" Fit in the Private Capital Landscape?
Traditional/Larger Growth Equity Struggles in Lower-Market SaaS
Large funds ($300M - $1B+) require $20M+ investments to deploy across 15 - 20 portcos.
Large check sizes create significant dilution or inflated investor expectations.
Many sub-$15M ARR businesses do not have the management and infrastructure to take on traditional growth equity's minimum check size.
VC's "Portfolio Theory" is Fundamentally Misaligned with Lower-Market SaaS
Focused on hypergrowth, huge TAM opportunities.
High loss ratio tolerance from VCs puts founder / employee equity at risk.
Handful of companies generate vast majority of VC returns - while others are neglected.
Private Capital Landscape Detail -- VC vs SGE vs LGE
Lower-Market SaaS Businesses Have Multiple Exit Paths
Lower-Market SaaS Businesses with Stable Recurring Revenue Have Many Exit Paths
Our History of "Channeling" Investments to Strategics and Larger Capital Providers