Revenue-Share Funding

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Revenue Share

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Experience

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

•	A focus on U.S.-based privately held companies.
	o	More than 4 million privately held companies in the target size range, version only 4,000 or so exchange-listed companies. Market potential thus estimated to be 1,000 times the size of that for publicly traded companies.
	o	No intense competition for deal flow because most other investors’ deal structures have no definitive exit path.
•	Company selection.
	o	No seed funding. Companies must have proven demand for their products and/or services.
	o	Companies seeking growth capital to accelerate their revenue growth through salesforce expansion, new product launch, entry into a new geographic market, etc.
•	General parameters:
	o	Investment size mostly $500,000 to $5,000,000.
	o	Companies make monthly or quarterly payments to Seaside, typically 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 an additional amount for the Managers).*
	o	Agreements provide for a buyout provision to terminate the payments at an early date.
	o	Late payments may incur fees and liquidated damages.
	o	No collateral, commitment fees, warrants, board seats, or personal guarantees.
*	Note: Negotiated terms will vary by company. Returns to members are in no way guaranteed. While Seaside carefully vets companies’ product or service demand, members must note that there is always a risk of company failure and loss of principal investment.