How We Invest Collaboratively
SeaChange is proud of our Collaborative Capital model. Take a look:
What Are We Looking For?
Model + Growth
What Being A SeaChange Company means To You
At SeaChange, we’re committed to building strong partnerships with our chosen investments, not just providing capital.
You’ll have a single contact point for all of our interaction, to answer questions, drive the process, and guarantee that you’ll get:
Before We Invest
- Due consideration and respect for your vision and planning
- In-depth review and analysis of your company’s opportunities, challenges and plans
- Frank and honest feedback from our highly experienced collaborator-investors. (Even if we don’t invest initially, we may in later rounds).
- Sensitivity to your time while raising capital
We aim to complete diligence and make a decision within just one month from first contact. You’ll receive a single large check immediately our agreement is executed.
We love to be collaborators in your success story. Our large investor community and our Fund managers are available for as long as you need us, as:
After We Invest
- Hands-on executive mentors;
- Board observers or members;
- Operations and Industry expert advisors;
- Sources of high-quality talent.
Our typical initial investment is $500K to $900K in high-growth potential companies in Seed and Series A investment rounds. We also look at very early stage companies with great promise, and will occasionally make smaller investments at this stage, typically $100K to $300K.
Simply click here to access our application platform and get started. We strive to be very responsive to all applicants.
SeaChange creates annual funds, each requiring investor commitment and capitalization at the beginning of each fund cycle. Therefore, investments in companies are made by the Fund, rather than by individuals. Our Collaborative Capital approach means our Fund member/ investors actively participate in all steps of the analysis process, as well as post-investment engagement.
We aim to complete due diligence within one month, subject to many factors such as access to company information, market research, reference call availability, and others.
We analyze a company’s fit with our investment requirements through a multi-stage process:
First, our screening committee reviews all applicants for suitability via in-person pitch sessions, then selects two to four companies per month to present to the entire membership at that month’s SeaChange investor meeting. (Typically, at that meeting we have 40 to 50 people in person and another 20+ through video conference). All attendees present at the meeting are SeaChange member/investors. (A most attentive audience for your pitch!)
After the entrepreneurial presentations, as a group we discuss each company, and vote Yes/No for its continuing into diligence. Collaborative teams of investor/members and Fund management is then formed for each successful applicant and we rapidly conduct extensive due diligence activities.
A comprehensive investment memo is written from the team’s diligence findings and the investment opportunity is put to a vote by all investors. Two-thirds of our investors must approve the recommendation to move forward. We estimate that our typical collective time to reach a recommendation is approximately 250 person-hours.
We focus on the Pacific Northwest high-growth potential companies at the Seed and Series A stage of growth. We will occasionally make smaller investments in pre-seed companies with attractive futures.
We interact at some level (from informal meeting to investment) with about 300 companies per year. We invest in 6 to 8 per year.
We do not sign NDAs for receipt of materials from companies, but we will do so to enable disclosure of trade secrets and intellectual property not yet reduced to a patent application.
We often lead rounds. We do require a board seat if we lead. If we are a significant investor, but not a lead, we will often ask for a board observer position. We will always ask for management rights.
We strongly prefer priced rounds but will do convertible notes if logical for the company’s current funding goals.
We invest in companies because we strongly believe in their team, technology and/or market. We consider ourselves partners with every company in our portfolio. With well over 100 investors to draw from, we have a deep pool of resources, experience, knowledge and connections available to you – as mentors, Board members, strategists and sources of talent. Such strong engagement and support of our portfolio companies is a core philosophy of SeaChange.
We love new connections! Give us your thoughts and questions below. We’ll respond promptly.