An investment in knowledge pays the best interest.
— Benjamin Franklin
With those simple words, Benjamin Franklin gave us a gift that, if diligently applied, can create infinite value and fulfillment in our lives. We take this gift seriously at Saltwater, starting every conversation from a position of humility, curiosity, and an understanding that founders and operators have insights that we are privileged to learn from.
At Saltwater help builders build and ensure that the learning throughout our partnership never stops. We operate shoulder to shoulder. We have no corner offices, no ivory towers. We prefer the trenches.
Saltwater is a private holding company. We believe the best things in life happen IRL. Even as more of life becomes digital, the desire to reconnect through creativity, shared experiences, and real human connection will only grow.
We started building a venture portfolio that is now 30+ companies making an impact and showing great results. We are lucky to call these founders our friends. Over time, we found it more fulfilling to be deeply involved with our portfolio companies, so we began making larger investments in fewer deals, with a preference towards profitability and companies doing culturally significant & society defining work. Given the depth of our involvement and our long-term partnership, we call this model ‘partner equity’.
As practical investors, we are value-driven,
and as practical entrepreneurs, we are values-driven.
Business is people. Life is short. We want to spend it with great people who will challenge us and help us grow. We surround ourselves with those who are authentic, honest, intelligent, and with whom we mutually expect excellence.
We are pragmatic and long-term focused. We don’t have arbitrary investment horizons. We prioritize durable value creation. We believe strongly in the power of patience and compound interest.
We adopt a societal responsibility for our environment and all those who our businesses touch. Our job is to preserve the beauty of our environment for generations to come.
We evaluate every opportunity through five lenses we call the 5 C’s:
Creativity
The team starts with design, art, and ideas. Their work reflects a genuine creative sensibility, not formulaic execution. They produce things that surprise, move, and inspire.
Curiosity
The team sees opportunities others miss. They experiment with new business models, reach new customer segments, and push into adjacent verticals.
Capacity
The team has the people and the margin to evolve toward a studios approach, even if they haven't done it yet. Bench depth and organizational maturity support scaling.
Capital
The business is financially healthy with multiple years of profitability. The founder's earnings create real economics for new partners, not just a lifestyle business.
Our involvement focuses on strategic partnership to improve how the company runs, plans, and scales. We drive towards the probability of success not just the magnitude of it, and have found we are more ‘Berkshire’ than ‘Benchmark’, though we admire both firms.
After almost a decade driving one of the world’s fastest-growing technology companies, we have broad operating experience ready to be shared with our partners, supporting them through the inevitable challenges of scale.
We build trust through that support and the patience it takes to build an organization that lasts.
From the moment we meet a company through to the close of a transaction, working with the Saltwater team feels different, and that difference is welcomed by owners. We’re not private equity. We’re not venture capital. We’ve built. Our ‘partner equity’ styled investment is welcomed, while other investment is often just ‘stomached’. If we do our job correctly, it will be the start of a relationship that remains strong for decades.
We chose the name Saltwater because, from an early age, my experiences in the ocean have been a crucial source of inspiration, clarity and personal growth. Charlie Munger once asked me, with a healthy balance of skepticism and characteristically genuine curiosity, ‘Why are you investing in companies?’ My candid response:
‘It is the most interesting and most challenging way to keep learning. I love people, and business is people.’
We’re careful about how and with whom we invest and, with that combination, we’re building a company that will endure and compound capital over time.
We look forward to building with you.