Budgeting for traditional search fund in 2023

by a searcher from Harvard University - Harvard Business School

2 months ago

Looking into details of the traditional search budget. It's mid###-###-#### Assume 2-year search:

1. Is it still $500K for a solo searcher, or has inflation helped push that up to $600K?
2. How does the breakdown work, especially how much % or $ should be allocated to 
(i) legal and diligence 
(ii) search tools and brokers?

Any rough guidance would be super helpful! Thanks!

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searcher from University of Maryland at College Park

Thanks for the tag ^Searchfunder member‌. Our current teams are budgeting $500K seed capital for both independent sponsors and fund startups. Happy to provide a detailed breakdown but it varies based on: industry-specific due diligence requirements; founder/team income requirements; outsourcing strategies (modeling/analytics/target lead gen/investor identification); deferred payment and busted deal arrangements with legal and accounting firms, etc. If you are smart there is no reason it cannot work with $500K or less. Of course we can always find ways to spend more.

3 days ago | like reply | 1 like

searcher from Istanbul Bilgi University

Thanks for the tag^Luke , Pleased to advise if you DM me. Thank you !

1 month ago | like reply | 0 likes

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