Channel Equity Partners
About Us
Based in San Diego, CA, CEP invests in B2B software companies in the U.S. and Canada.
Investment Criteria
Business Types:
Locations:
ARR:
Growth Rate:
Retention:
Capital Efficiency:
Deal Size:
Deal Profiles:
B2B software & software-enabled services
United States & Canada
$3M - 10M
50%+
85%+ Gross; 100%+ Net
Lightly funded or bootstrapped
$5M - 10M
Minority (primary/secondary), lead/follow
Where Does "Early Growth Equity" Fit in the Private Capital Landscape?
Venture Capital
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Focused on hypergrowth, huge TAM opportunities that need massive outcomes.
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High loss ratio funds with ~30 portcos that put most founders' and employees' equity at risk ("Power Law").
Early Growth Equity
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Appropriately sized checks in businesses that have mostly de-risked product-market fit.
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Provides founders optionality to scale to an exit where everybody wins - or go for something bigger down the road.
Growth Equity
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Like Early Growth Equity, not investing with a "binary outcome" mentality.
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However, these firms struggle to work with companies beneath $10M ARR as their large funds have minimum check sizes of $15M+.