Revenue-Share
Funding |
A focus on early stage U.S. companies in need
of growth capital.
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Targeting U.S.-based privately
held companies. |
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Well over one million privately
held companies in the target size range, versus only 6,000 or so exchange-listed
companies. Market potential thus estimated
to be many times the size of that for
publicly traded companies. |
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Limited competition for deal flow. |
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Company
selection. |
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Targeting companies with proven demand for their products
and services. |
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Companies seeking to accelerate
their revenue growth through salesforce expansion, new product launch, entry
into new geographic markets, etc. |
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General parameters: |
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Investment size typically $1,000,000 to $5,000,000. |
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Companies make monthly or quarterly payments to Seaside, usually
in a range of 3-12% of the prior month’s or quarter’s revenues. |
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Payments terminate when Seaside achieves a pre-determined
return on its investment (usually negotiated at 1.65x for our Members over 24-36
months, plus payments to the Managers for their services).* |
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A buyout provision to terminate payments to Seaside at an
early date. |
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No collateral, commitment
fees, warrants, board seats, or personal guarantees. |
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Late payments incur fees and liquidated damages. |
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Note: Negotiated terms will vary by
company. Returns to members are in no
way guaranteed. While Seaside
carefully vets companies’ product or service demand, its Members must note
that there is always a risk of company failure and loss of principal. |