Channel Equity Partners
About Us
Based in San Diego, CA, CEP is a "Smaller Growth Equity" firm that invests in B2B, Lower-Market SaaS companies.
Investment Criteria
Business Type:
Location:
ARR:
Growth Rate:
Retention:
Deal Size:
Deal Profiles:
B2B software & software-enabled services
United States & Canada
$3M - 12M
30%+
85%+ Gross; 100%+ Net
$5M - 15M
Minority (primary/secondary), lead/follow
Where Does "Smaller Growth Equity" Fit in the Private Capital Landscape?
Larger Growth Equity
Too Big For Lower-Market SaaS
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$300M+ funds require $20M+ investments to deploy across 15+ portcos.
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Large check sizes create significant dilution or inflated investor expectations.
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Many sub-$12M ARR businesses are ill-suited, or do not want, to take on LGE’s minimum check size.
Venture Capital
"Portfolio Theory" Is Misaligned With Lower-Market SaaS
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Focused on hypergrowth, huge TAM opportunities.
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"High loss ratio" fund model puts founders' equity at risk.
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Portfolio returns generated by handful of companies – others are neglected.
Venture Capital vs Smaller GE vs Larger GE
