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Channel Equity Partners is an investment firm founded in 2022 and based in San Diego, California. The firm focuses on early growth equity investments in B2B software companies that are not suitable for traditional venture capital and are too early for most growth equity firms. This unique positioning allows Channel Equity Partners to fill a critical gap in the investment landscape.
The firm operates with a disciplined approach, targeting capital-efficient companies that are lightly funded or bootstrapped. Channel Equity Partners aims to provide the necessary support for these businesses to thrive, ensuring they receive the guidance and resources needed to navigate growth challenges.
As of now, Channel Equity Partners has established itself as a credible emerging manager with a strong pedigree, having been founded by veterans of TVC Capital, a San Diego-based growth equity firm. The firm has already begun to build a portfolio of promising investments while maintaining a clear focus on its investment thesis.
Channel Equity Partners invests in early growth stage B2B software companies across the United States and Canada. Their investment strategy is specifically designed for companies that require support beyond traditional venture capital but are not yet ready for larger growth equity investments. This focus allows them to target businesses that are capital-efficient and have annual recurring revenues (ARR) between $3 million and $10 million.
The firm typically makes minority investments with check sizes ranging from $5 million to $10 million. They emphasize investing in lightly funded or bootstrapped companies that are not a fit for typical venture portfolios and are too early for most growth equity firms. Additionally, Channel Equity Partners is open to considering software-enabled services as part of their investment strategy.
Channel Equity Partners has made several notable investments since its inception. Current investments include:
Prior to the establishment of Channel Equity Partners, the founders were involved in several successful investments through TVC Capital. Notable exits from that period include:
Active investments from the TVC Capital era include Integration Platform as a Service (iPaaS), which continues to show promise in the market.
Andrew Albert - Co-Founder & Managing Partner. Andrew has extensive experience in the B2B software sector, having spent eight years at TVC Capital, where he focused on growth equity investments. He has a strong track record of identifying promising software companies and guiding them through their growth phases.
Jensen Bryant - Co-Founder & Managing Partner. Jensen also spent eight years at TVC Capital, where he developed expertise in the software investment landscape. His background includes working closely with portfolio companies to enhance their operational efficiency and market positioning.
To pitch Channel Equity Partners, founders should use the contact form available on their website at channelep.com. It is recommended to include a comprehensive pitch deck that outlines the business model, market opportunity, financial projections, and team background. Founders should expect a response within a few weeks, and while warm introductions are appreciated, they are not strictly necessary.
In April 2024, Channel Equity Partners held the first close of their Fund I, marking a significant milestone for the firm. This fund will enable them to expand their investment activities and support more early growth stage B2B software companies.
In 2023, Channel Equity Partners made several key investments, including in Senior Housing Operations & Analytics and Employee Rewards & Recognition, demonstrating their active engagement in the market.
What are Channel Equity Partners' investment criteria?
Channel Equity Partners focuses on early growth stage B2B software companies in the U.S. and Canada. They specifically target companies with annual recurring revenues (ARR) between $3 million and $10 million that are capital-efficient and lightly funded.
How can I pitch to Channel Equity Partners?
Founders can pitch Channel Equity Partners through their website at channelep.com. It is advisable to include detailed information about your business model, market opportunity, and financial projections in your pitch deck.
What makes Channel Equity Partners different from other investors?
Channel Equity Partners fills a unique niche by targeting companies that are not suitable for traditional venture capital and are too early for most growth equity firms. They provide minority investments and focus on offering strategic guidance and operational support to their portfolio companies.
What is the typical check size for investments?
Channel Equity Partners typically invests between $5 million and $10 million per deal, allowing them to provide substantial support to their portfolio companies.
What is the geographic focus of Channel Equity Partners?
The firm primarily invests in B2B software companies located in the United States and Canada, ensuring they can provide localized support and resources.
What kind of post-investment involvement can founders expect?
Channel Equity Partners offers strategic guidance and operational support to their portfolio companies, leveraging their extensive experience in the B2B software sector to help businesses navigate growth challenges.
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