We invest in Channel Partners
GreenShoot Innovation is the investment platform for software channel partners.
Our Mission
GreenShoot Innovation is the investment platform for software channel partners. We provide startup capital for independent technology experts to build their businesses on the ecosystems of tomorrow’s most successful B2B software vendors. We believe that digitalization will continue to be our economy’s greatest source of wealth creation and that software channel partners are the best way for operators, vendors, and investors to capitalize on this trend.
Ecosystems We Invest In
Great software companies have great channel partners
"Software channel partners drive 30% of all vendor pipelines at 53% higher close rates and 46% faster close times."- Crossbeam: State of the Partner Ecosystem 2023
What We Look For
You’re a software company with clear product-market fit and the ARR and retention rates to prove it. Your product is cloud-native, open, and extensible. You’re focused on product development and efficient growth. Your TAM is substantial, and realistically more than your team can service internally. You’re ready to invest in your channel partner program to unlock your company’s next stage of scaling. If this sounds like you, let’s get to know each other.
Product Iteration Velocity
- Platforms that quickly release new products expand the TAM
- Faster product iteration cycles lead to more favorable expansion rates
- Active product releases generate more robust marketing and keep early adopters engaged
Demonstrated ROI
- Measurable ROI from current customers enhances sales cycles
- ROI allows the buying conversation to switch from price to value
- Proven efficacy of a platform prior to purchase eases customer budgetary concerns
Disrupting Legacy Models
- Platforms disrupting demonstrated legacy models provide the ability to target customers that already understand the value proposition
- Sales pipeline is a combination of greenfield and fertile brownfield from customers hungering for innovation
Measurable Demand
- Abundant demand proves quality and marketability of vendor’s products, mitigating technology risk
- Demand combined with internal sales bottleneck creates partner opportunity and incentivizes vendors to invest in their programs
Strong Community
- An active community of developers and power users demonstrates end user buy-in and product-market fit
- User evangelists generate outsized demand that can’t be fully served by internal sales staff
- Communities willing to create on the platform show a desire to standardize on it
Why Greenshoot
We have years of experience operating and investing in the software industry. We’ve seen firsthand how successful channel partner programs have amplified the trajectories of software companies. We believe that the best channel partners are well-funded industry veterans dedicated to a single vendor, and we specialize in finding and matching these operators with ISVs like yours. If we sound like your kind of partner, let’s get to know each other.
Our Process
1. Connect
Reach out and let’s get to know each other. We’ll discuss your company’s growth strategy to see if there’s a fit.
2. Prospect
There’s a lot of untapped entrepreneurship in the software industry. We specialize in finding operators with the right expertise to sell and service your products, but if you have someone in mind, we’re all ears.
3. Partner
We’ll fund your new channel partner under a structure that maximizes the value for all of us. Together, we’ll support the partner as they grow.
Partner Program Lifecycle
Where GreenShoot invests as a vendor builds their channel
GreenShoot for Operators
Empowering independent technology experts to build thriving partner businesses
Who we look for
You have 3+ years of experience in the software industry. You have a differentiated skillset in working with a particular product, vendor, or solution area. You know how to sell, manage relationships, design, implement, and consult. You’ve built businesses, either for yourself or for someone else. You want ownership and uncapped upside from your next opportunity, but you’d rather have a partner than go it alone. If this sounds like you, let’s get to know each other.
GreenShoot’s Channel Partner Pillars of Success
Expert Led
Industry expert operator
Ability to leverage existing network
Key integration developers
Established hiring pipeline
Customer Driven
Measurable ROI
Stronger retention
Robust expansion
Deeper relationships
Word-of-mouth sales momentum
Community Leader
Industry thought leadership blog
Conference & event sponsorship
Active among developers
Vendor recognition
Destination Employer
Uncapped earnings potential
Anti-corporate politics culture
Best-in-class utilization rates
Vested ownership
Why GreenShoot
Like venture capitalists, we invest equity dollars into brand new companies and the founders running them. Unlike venture capitalists, we aren’t looking for “growth at any cost” or an IPO. We are building a portfolio of high-margin software services companies that we share ownership of with our operators for the long term. Along the way, we support our operators with our own industry expertise, networks, and centralized administrative services. If we sound like your kind of partner, let’s get to know each other.
The GreenShoot Deal
Structured to maximize upside, minimize downside, and be a founder's last career move.
- Geographic constraints
- Corporate politics
- Lack of upward career mobility
- Selling, servicing, and consulting on software deals
- Harnessing digitalization tailwinds
- Capitalizing on expanding partner ecosystems
- Owned client relationships
- Strategic autonomy
- Uncapped upside
- Zero out-of-pocket expenses
- Accelerated scale
- Built-in advisor network
- Built-in administration services
Our Process
1. Connect
Reach out and let’s get to know each other. We’ll discuss our backgrounds and goals to see if there’s a fit.
2. Develop
There’s a lot of software out there and a lot of ways to sell it. We’ll work together to identify the best product/vendor opportunities in your area of expertise and form a business plan.
3. Operate
Once we’ve agreed on partnership terms, we’ll write the startup check. You’ll vest into an increasing equity stake and profit distributions as the business hits performance milestones.
GreenShoot Operator Playbook
Processes and milestones maximize success for both parties
Phase 1
Pre-Ops
- Identify vendor and market opportunity
- Conduct opportunity due diligence and form business plan
- Secure vendor support
- Operator and GreenShoot sign non-binding letter of intent (LOI)
- Finalize background checks and partnership terms
- Operator and GreenShoot sign binding agreement - first funding
Phase 2
Launch
- Build early sales pipeline
- Hire first employees and ramp up first projects
- Second funding (1st bookings threshold met)
- Roll out managed service and integration offering(s)
- Final funding (2nd bookings threshold met)
Phase 3
Scale Up
- Roll out managed app offering(s)
- Expand headcount and geographies under operator’s direction
- Grow from $1M to $10M+
- Operator vests into equity as GreenShoot receives profit distributions
About Us
We combine operating and investing experience under a shared vision
Managing Partner
Carl has three decades of experience within the partner and consulting industries. His entrepreneurial journey started when he and his co-founders acquired an Oracle consulting practice out of Arthur Andersen and developed it into MarketSphere Consulting. Following MarketSphere’s eventual sale to Grant Thornton, both Carl and the practice became key pillars of Grant Thornton’s Technology Solutions division, where Carl ultimately served as National Managing Principal. Carl further developed his channel partner expertise as an investor and board member in Customer Imperative, a partner for the customer success software vendor Gainsight. Carl currently serves as Co-founder and Chairman at Black Diamond Advisory, the largest dedicated channel partner for the FP&A software vendor OneStream. At GreenShoot, Carl leverages his practical operating expertise to support the next generation of software channel partner entrepreneurs.
Managing Partner
David has over a decade of experience investing in great businesses. After building his expertise at several firms, including DS Advisors, Brown Brothers Harriman, and Merrill Lynch, David founded Whetstone Capital Advisors in 2010 to start putting money to work under his own paradigm: long-term partnership with competitively advantaged businesses in growing industries. As David grew Whetstone, his paradigm found its home in the software industry, where Whetstone investments have ranged from scaled giants in cloud computing to fast-growing disruptors in databases, infrastructure, business applications, and more. At GreenShoot, David leverages his multi-year journey within the software industry to source ISVs with the best long-term growth prospects for building channel partner businesses.
Managing Partner
Andrew has over a decade of experience investing in great businesses. Having begun his career as Whetstone Capital Advisors’ first analyst, Andrew helped build the firm’s core competency in the software industry. As Investment Partner, Andrew leads Whetstone’s extensive primary research efforts, conducting hundreds of calls annually with developers, salespeople, executives, and other software experts. At GreenShoot, Andrew applies his deep domain expertise and industry network toward the channel ecosystem, matching expert operators with high-quality ISVs to build channel partner businesses.