The Sunwest Channel Fund is a new Rolling Fund from investment and advisory firm Sunwest Ventures. Founded in 2011, Sunwest Ventures and our partners have successfully invested in numerous startups over the years.  

We have created the Sunwest Channel Fund with a focused approach to early-stage investing in channel and distribution-related technology companies with the goal of enabling investors, channel SME’s and funds to partner with us in helping grow the “Channel Tech” startup ecosphere.

Investment Strategy

The Sunwest Channel Fund invests in transformational pre-seed, seed and Series A companies in the Channel Tech space that have high-multiple, recurring revenue business models.

Channel Tech defined: Innovative software and ecommerce technologies that drive sales growth and collaboration with developers, suppliers, manufacturers, sales agents, wholesalers, distributors, dealers, VARs, MSPs and other members of the global channel ecosystem.

Why Channel Tech?

• Over 70% of global revenue passes through 3rd party channels (source: Forrester Research).
• The Channel Tech total addressable market (TAM) is over $150BN yet is severely underserved (especially in certain niches).
• The Channel market has historically been highly relationship driven. However, ”digital first” collaboration is rapidly becoming the new normal.
• The Channel workforce is getting progressively younger, have flexible work options and are demanding broader Channel Tech options.
• The Channel market is rapidly transitioning from a transaction-based to a “customer-focused” ecommerce model with increased importance on customer lifetime value and the overall customer/partner experience.
• First-movers that offer purpose-built solutions for the Channel will be rewarded with long term relationships, low churn and high LTV.

Investment Criteria

We Typically Invest Early

Our focus is on early-stage investments with a check size between $100k to $1M, sometimes more, sometimes less and possibly with multiple tranches across multiple quarters.

Typically, we are focused on companies that have synergistic opportunities with other portfolio companies in the Channel Tech space and we encourage and facilitate co-marketing and co-selling across portfolio companies whenever possible.   

We invest with a founder-friendly approach and mindset that every deal can achieve a successful exit.   We look for companies and Founders that embrace this approach and have a business model, team and plan that is capital efficient. 

We prefer to invest in companies where the Sunwest Channel Fund “community” (GPs, Advisors and LPs) can add significant value beyond capital. This includes introductions, strategic advice, referrals and more. We will generally take a board seat and look to engage with our portfolio companies well before our first investment. We conduct deep discovery into a company's product, mission, financial model, exit strategy and “channel tech” vision before an initial investment is made.   

We also look to leverage our existing strategic ISV/OEM relationship and partnership with Salesforce.com when appropriate. 

The Team

The Sunwest Channel Fund team is composed of successful Founders, engineers, investors, and Channel SME’s all working together with the common goal of identifying qualified Channel Tech companies and then helping these companies achieve their next level of success and growth.   

Tom Burton (linkedin.com/in/tburton5350/)

Tom has over 35 years of tech experience and is a 3x SaaS leader and investor with multiple exits to Platinum Technology (Computer Associates) and Intuit.  Tom has a degree in Computer Science and was previously a GP in a “quant” hedge fund and also advised large Opportunity Funds and REIT’s (including Morgan Stanley and JP Morgan) on complex investment model structures and strategies.  In addition, Tom also has a deep background in digital marketing and has advised multiple digital marketing agencies in the tech arena.  Most recently, Tom co-founded and invested in LeadSmart Technologies, is currently working with LeadSmart as their interim COO as well as consulting with multiple technology companies and is a General Partner of the Sunwest Channel Fund.  

Kevin Brown (linkedin.com/in/brownkevinl/)

Kevin has over 30 years of sales, marketing and go-to-market experience in industrial, environmental, electrical and consumer electronics manufacturing and distribution and has deep SME knowledge of the Channel market. Kevin is also an advisor/mentor with 500Startups and is a member of the Forbes Business Council.  Kevin has advised and consulted with countless manufacturers, sales agents and distributors on how to leverage technology to drive sales and growth.  Currently, Kevin is a co-founder, investor and CEO of LeadSmart Technologies and is a General Partner of the Sunwest Channel Fund.  

Chris Lee

Chris Lee is the founder and CEO of Reel Axis, a leading technology marketing agency and a veteran SME in the channel arena.  Chris has advised and consulted with hundreds of tech companies that sell through 3rd party channel partners (including Juniper Networks, Cambium Networks and more) on how to leverage digital marketing and technology to grow their business. Chris will support the Sunwest Channel Fund as a Limited Partner and as a Venture Associate working with both LP and investment candidates. 

Kathleen McDonald

Kathleen McDonald has spent more than 24 years in the federal laboratory sector developing collaborations with industry, venture capital, and academic partners for commercializing technology inventions and related intellectual property. Most recently she managed a staff of almost 40 people in business development, intellectual property management, sponsored research agreement management and technology commercialization efforts.  Kathleen will support the Sunwest Channel Fund as a Venture Program Manager working with both LPs and investment candidates. 

Investor Expectations

• Minimum single quarter investment: $15,000
• $250,000 minimum investment across up to 8 quarters

Want to Learn More?

Download the Sunwest Channel Fund Investor Deck.  

Email: tb@sunwestventures.com

Website:  sunwestventures.com