Coastal Ventures III, LP

This is CVI's 3rd socially-responsible venture capital fund. CEI Ventures has established a successful track record managing its two prior funds, Coastal Ventures Limited Partnership (“CVLP”) and Coastal Ventures II LLC (“CVII”) (collectively, the “Prior Funds”), with a total of $25.54 million in committed capital.

The Manager’s perspective is that within underserved markets are market inefficiencies which enhance the prospects for investment returns. The Fund aims to identify and capitalize on these market opportunities, and mobilize capital to help improve the socioeconomic condition of underserved people while providing its investors with attractive returns. Some companies are not targeted by other investors because of their geography, industry, stage of business development, or deal size. Other traditionally underserved groups include businesses led by ethnic minorities and women.

The Manager has successfully sourced deals in these markets for the Prior Funds, and the continuation of this approach will provide a competitive strategic advantage to the Fund. The $10 million Fund will primarily invest in companies located in the Northeast. Often staged through multiple financings, target portfolio company investments will likely range in size from $250,000 to $1 million. The Fund will be a balanced equity portfolio, diversified by geography, industry, stage of business development, and social benefit.

Financial description

The Fund will seek compelling investment opportunities in underserved markets, offering the prospect of generating substantial financial returns while advancing social benefits. This investment strategy is rooted in the successful experience of the Prior Funds and by the 33 year history of CEI. The Fund will be managed as a balanced equity portfolio, diversified by geography, industry, stage of business development, and social benefits. The Manager will often seek to leverage relationships, co-investing with other venture capital funds and socially responsible investors. The Manager will add value to companies in which the Fund invests by becoming actively engaged in their businesses.
The company should have strong, capable management with the appropriate background and experience to develop and grow the business according to its plan.
Prospective portfolio companies will also be capitalizing on dynamic market opportunities. The investment must exhibit the potential for an attractive financial rate of return through a realistic valuation and a viable exit plan in a four to seven year time period.
The Fund will invest in companies demonstrating a significant competitive advantage. Companies may have a proprietary interest in its technology, intellectual property, distribution system, brand strength, market niche or other operating aspect that gives the business a distinct market advantage and protects it from encroachment.