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Data Room (Private)

A focus on early stage U.S. companies in need of growth capital.

•	Targeting U.S.-based privately held companies.
	o	Approximately 6 million privately held companies in the target size range, versus only 6,000 or so exchange-listed companies. Market potential thus estimated to be 1,000 times the size of that for publicly traded companies.
	o	Limited competition for deal flow.
•	Company selection.
	o	Targeting companies with proven demand for their products and services.
	o	Companies seeking to accelerate their revenue growth through salesforce expansion, new product launch, entry into new geographic markets, etc.
•	General parameters:
	o	Investment size typically $1,000,000 to $5,000,000.
	o	Companies make monthly or quarterly payments to Seaside, usually in a range of 3-12% of the prior month’s or quarter’s revenues.
	o	Payments terminate when Seaside achieves a pre-determined return on its investment (usually negotiated at 1.5x for our Members over 18-36 months, plus payments to the Managers for their services).*
	o	A buyout provision to terminate payments to Seaside at an early date.
	o	No collateral, commitment fees, warrants, board seats, or personal guarantees.
	o	Late payments incur fees and liquidated damages.
*	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.