Channel Equity Partners

Channel Equity Partners is an early growth equity firm founded in 2022 in San Diego, California, by co-founders Andrew and Jensen, who have worked together since 2015. The firm invests in AI-first and AI-native B2B software companies across the United States and Canada. Channel occupies a specific niche between traditional venture capital and growth equity, backing capital-efficient, lightly funded or bootstrapped companies with de-risked product-market fit that are often too early-stage for larger growth equity funds requiring $10M+ ARR minimums. Channel's investment approach emphasizes thorough customer, market, and financial diligence pre-investment, along with hands-on founder partnership post-investment. Rather than chasing hypergrowth "power law" outcomes typical of VC, the firm prioritizes giving founders optionality to scale toward a balanced exit or pursue larger growth later. Investment Criteria Business Type AI-first/native B2B software Locations United States & Canada ARR $2M-8M Growth Rate 40%+ Retention 85%+ Gross; 100%+ Net Capital Efficiency Lightly funded or bootstrapped Deal Size $4M-10M Deal Profile Minority; lead