Equity Investment Criteria
We are an international private equity investment business. That means we contribute our capital into a business for a portion of ownership. We are often referred to as an Angel investor because we hope to help grow very small businesses into much larger enterprises so they can be sold, merged with another business, or even become a publicly traded company. Also, if the business is growing rapidly and the market can sustain a long-term runway, we are comfortable staying invested for a very long time. Our typical investment is under $75,000 and we usually receive a 10% to 40% equity stake, but we can be creative in offering other paths to funding. By being more imaginative in our approach than our competitors, we have been able to make deals where others won't. For example, we realize most early stage businesses often have a continuous requirement for working capital. We are comfortable offering a line of credit in those instances. We have occasionally offered a product royalty deal, if the business can support it. Also, we are comfortable with venture debt with associated stock warrants in those rare occasions where it is appropriate. No matter what funding mechanism is used, we will always require equity in the business.
Tidewater does not purport to, and does not, in any fashion, provide tax, legal, investment, accounting, actuarial, record-keeping, or broker/dealer advice or any related services to the general public. We are not investment advisers and are not engaged in activities that would require us to register with the U. S. Securities and Exchange Commission or FINRA. We invest solely for our own account.
Our Foundational Pillars
Tidewater does not purport to, and does not, in any fashion, provide tax, legal, investment, accounting, actuarial, record-keeping, or broker/dealer advice or any related services to the general public. We are not investment advisers and are not engaged in activities that would require us to register with the U. S. Securities and Exchange Commission or FINRA. We invest solely for our own account.
Our Foundational Pillars
- The most important pillar of our investment approach is that the “market” must speak about your product or service. That means you will need customers. It is very rare that we would entertain an investment where you do not have any existing clients. It doesn't have to be profitable, but there should be a clear path to profitability.
- While we invest in a variety of businesses, each having their own unique products, we will always require equity.
Basic Criteria
If your idea meets these basic concepts, please send a pitch document or executive summary of your idea, and any supporting materials such as financials, along with a cover letter, to info@tidewaterservices.net - with a subject line of "Tidewater Inquiry". If your business appeals to us, we will quickly schedule a call to learn more. Don't forget to include phone and email contact information.
- The businesses we are interested in are usually early stage, have high growth, and can be in almost any category, outside of the exceptions listed below.
- The business must have clients, some revenue, and a product or service that is understandable and in demand.
- The business should be at, or have a clear path, to being profitable.
- The market size should have a large potential and there should be a business model that is able to scale with it.
- We look for an experienced, resilient, trustworthy team, with a full-time founder.
- We will consider only U.S. and Canadian based businesses.
- Our investment horizon has no fixed time frame, but typically an exit between 2 and 6 years is expected. However, if the business is growing rapidly and the market can sustain a long-term runway, we are comfortable staying invested for a very long time.
If your idea meets these basic concepts, please send a pitch document or executive summary of your idea, and any supporting materials such as financials, along with a cover letter, to info@tidewaterservices.net - with a subject line of "Tidewater Inquiry". If your business appeals to us, we will quickly schedule a call to learn more. Don't forget to include phone and email contact information.
Advanced Criteria
The Capitalization table (or “CAP table”) is the tool that companies use to illustrate to investors the prior capital raise, the allocation for employee stock plans and any commitments for shares in exchange for services. We have created a white paper for the more advanced entrepreneur that describes this extremely important concept. If not documented correctly prior to an investment, it can lead to costly legal fees and lawsuits that can completely derail otherwise promising companies. We encourage every entrepreneur to download and study this document.
The Capitalization table (or “CAP table”) is the tool that companies use to illustrate to investors the prior capital raise, the allocation for employee stock plans and any commitments for shares in exchange for services. We have created a white paper for the more advanced entrepreneur that describes this extremely important concept. If not documented correctly prior to an investment, it can lead to costly legal fees and lawsuits that can completely derail otherwise promising companies. We encourage every entrepreneur to download and study this document.
Exceptions
While almost any industry will appeal to us, there are exceptions. We very rarely invest in the following concepts. It does happen, just not very often. The main problem with these commodity-type businesses is that the lowest cost provider wins. To say it another way, we are not interested in trying to out Walmart, Walmart.
However, if you have some product or service that is truly unique or even revolutionary, protectable by patents or trademarks where applicable, and a dynamic business plan demonstrating a clear path to franchising, licensing, or another high return path, that will have our interest. You must be able to demonstrate a high-growth future for the business. In that case, please send a pitch document or executive summary of your idea, and any supporting materials such as financials, along with a cover letter, to info@tidewaterservices.net - with a subject line of "Tidewater Inquiry".
As you can see, these are all either slow growth or commodity-type businesses and are generally not investible unless it has one of the above requirements.
While almost any industry will appeal to us, there are exceptions. We very rarely invest in the following concepts. It does happen, just not very often. The main problem with these commodity-type businesses is that the lowest cost provider wins. To say it another way, we are not interested in trying to out Walmart, Walmart.
However, if you have some product or service that is truly unique or even revolutionary, protectable by patents or trademarks where applicable, and a dynamic business plan demonstrating a clear path to franchising, licensing, or another high return path, that will have our interest. You must be able to demonstrate a high-growth future for the business. In that case, please send a pitch document or executive summary of your idea, and any supporting materials such as financials, along with a cover letter, to info@tidewaterservices.net - with a subject line of "Tidewater Inquiry".
As you can see, these are all either slow growth or commodity-type businesses and are generally not investible unless it has one of the above requirements.
- Alcoholic and non-alcoholic beverage or food products, or related businesses, such as breweries, distilleries, wineries, farms or farm stands, bars, restaurants, grocery stores, convenience stores, food trucks, etc.
- Clothing, shoes, or related businesses, such as pop-up shops, apparel stores, mall stores, etc.
- Entertainment type businesses, such as plays, musicals, songwriting, movies, theaters, auditoriums, museums, etc.
- Fixed asset businesses such as airports, marinas, flea markets, self-storage buildings, drive-ins, forest and lumber businesses, etc.
- CBD, Cannabis, hemp, or tobacco themed products or services, such as smoke shops, pipes, CBD oils, and so forth.
- Sexual themed products or services.
- Gambling related products or services, including fantasy sports products or services.
- Cryptocurrency products or services, such as server processors, or products such as Bitcoin, Ethereum, etc.