SeaChange is a nonprofit financial firm that seeks to enhance the flow of capital from wealthy donors to select high-performing nonprofit organizations in need of funds to support their growth. We intend to identify nonprofits with records of measurable success and to present opportunities for supporting them to a network of potential donors, including wealthy individuals, foundations, and others. The firm aims to bring to nonprofit organizations sophistication in capital-raising and in accounting for performance. We believe that “best in class” nonprofit organizations should and can be financed much like for-profit companies at similar stages of development: with a multi-million dollar round of financing, sized to fund a well-defined, multi-year growth plan..

Initially, we will work in the fields of youth education and youth development. SeaChange believes these sectors provide significant opportunities for donors to fund outstanding nonprofits that face challenges in attracting enough capital to grow. Our target client will have annual revenues of between $2 million and $75 million. Over time, the firm will seek to provide financing to organizations operating in other fields of the social sector..

The firm has a simple revenue model: we will use a relatively small portion of contributions to SeaChange to pay staff salaries and other administrative costs. We expect that we will need $15 million to execute our business plan and fund operating shortfalls through our first five years of operations, including $3 million to fund the ramp-up stage, $7 million to fund actual operating shortfalls, and $5 million set aside in a reserve..

The Goldman Sachs Group, Inc. is SeaChange’s founding donor: the firm made a significant initial contribution and will make additional contributions if SeaChange reaches milestones in our fundraising from other donors. In addition to donations to cover our operations, we will seek to raise $25 million in up-front commitments to the SeaChange Catalyst Fund. It will help fund the nonprofits we identify for support in our first three years of operation.

By helping improve the flow of capital to very promising nonprofits, we aim to contribute to the adoption by nonprofits of new performance standards and by donors of a new model of giving. We believe that SeaChange can make a significant social impact..