Revenue-Share Funding

 

 

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Funding Options

Revenue Share

Benefits

Management

Experience

 

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

 

A focus on U.S.-based privately held companies.

 

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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.

 

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No intense competition for deal flow because most other investors’ deal structures have no definitive exit path.

 

 

Company selection.

 

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No seed funding.  Companies must have proven demand for their products and/or services.

 

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Companies seeking growth capital to accelerate their revenue growth through salesforce expansion, new product launch, entry into a new geographic market, etc.

 

 

General parameters:

 

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Investment size mostly $500,000 to $5,000,000.

 

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Companies make monthly or quarterly payments to Seaside, typically 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 1.5x for our Members over 18-36 months, plus an additional amount for the Managers).*

 

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Agreements provide for a buyout provision to terminate the payments at an early date.

 

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Late payments may incur fees and liquidated damages.

 

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No collateral, commitment fees, warrants, board seats, or personal guarantees.

 

 

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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, members must note that there is always a risk of company failure and loss of principal investment.