We invest primarily in SaaS, Healthcare and Tech-Enabled Services companies. We see opportunities to create significant shareholder value with companies looking to scale their sales efforts nationally, with a preference for companies characterized by defensible strategic positioning, rapid customer ROI, and recurring revenue.
Since 1998, we have opportunistically invested across the United States, but our primary focus is on rapidly growing companies based in the Southeast. We still invest in companies outside our region, but only when we can offer unique strategic value to a company. Our core geographic focus stretches from the Carolinas to Texas and Colorado.
The Capital Gap
We recognize that each company has its own unique operational history and capital structure, and we work with entrepreneurs to craft investments which fit a company’s capital needs. We focus on a traditionally underserved segment of the capital markets, a space we call the “Capital Gap.” Angels typically invest in rounds smaller than $3 million, while many institutional funds look to invest $10+ million. In between, entrepreneurs are often forced to choose between raising too little capital or raising a round that is in excess of their current needs. We typically hold a minority position in our companies but remain active investors by applying our advisory and operating expertise when engaged by our management teams. Our typical investment size is between $4 and $10 million, with the potential to invest $10 million or more in a single transaction through our partners.
Strong Management Teams
Eastside targets promising management teams—individuals who are capable of dramatically altering the trajectory of a business. The key differentiator for any company is its operators, and we build relationships with teams focused on growing well beyond the inflection point. Our most successful companies have been led by energetic, high-integrity management teams with an unyielding desire to learn and compete.
Development Stage and Business Characteristics
We invest in early-to-expansion stage companies, typically those with annual revenue greater than $2 million. We’re particularly attracted to companies with recurring revenue, pricing acceptance, demonstrable customer ROI, annual growth in revenue and/or cash flow in excess of 25%, and markets that support multiple high-growth companies, but these are not absolute requirements.
Use of Proceeds
Our fund size(s) give us great flexibility in our investment strategy. We’ll consider a wide range of security types for a number of different uses, including growth equity, recapitalizations, management buyouts, shareholder liquidity, and acquisition capital.
If your company fits the above criteria, please contact us.