Channel Equity Partners

Channel Equity Partners is a private equity firm specializing in early growth investments in B2B software companies across the U.S. and Canada. The firm focuses on businesses that are too early for most growth equity firms but have demonstrated product-market fit and are seeking capital to scale. Their investment criteria include companies with annual recurring revenue between $3 million and $10 million, a growth rate of over 50%, and high customer retention rates. They prefer lightly funded or bootstrapped businesses and typically invest between $5 million and $10 million, taking minority lead positions.

The firm's investment strategy positions them between traditional venture capital and growth equity firms. Unlike venture capital, which targets hypergrowth companies with massive total addressable markets, Channel Equity Partners focuses on appropriately sized investments in businesses that have mostly de-risked product-market fit. This approach provides founders with the option to scale to an exit where everyone benefits or pursue larger opportunities in the future.

Channel Equity Partners has a track record of partnering with exceptional software companies. Their current investments include Omnichannel Retail Clienteling in New York, NY (invested in 2024), IndoorMapping in Waterloo, ON (invested in 2022), Senior Housing Operations & Analytics in Lakewood, NJ (invested in 2023), and Employee Rewards & Recognition in Vancouver, BC (invested in 2023). These investments reflect the firm's commitment to supporting innovative B2B software companies in their growth journey.