Chicken or the egg - Raising funds

December 04, 2025

by a searcher from Washington University in St. Louis - Olin Business School in Oklahoma City, OK, USA

I keep running into this "chicken or the egg scenario", I'm curious about the community's experience. How does one go about raising funds without a prospective business to pitch? On the flip side, how have you been able to access deals to vet without proof of significant capital readily available? I may be able to use personal net worth for a small business - but at the risk of buying "too small", which has been covered extensively.

1 Like

3 Replies

104 Views

Replies

Reply by an investor
from United States Naval Academy in Ashburn, VA, USA

Start by meeting investors. Don't start with a specific fund raise ask. Tell them what you are looking for and how you are approaching the search. Seeking investors for the first time after you have an LOI in hand is doing this Hard Mode. Something that not enough seachers do - start sharing what you are doing in an email on a regular basis. Monthly is good. Tell people what you've done on the search, where you are looking, how your thesis is adjusting. Every time you share your search journey with new people - ask to add them to your monthly update. I love getting these things. It's a simple ask. Grow that list so that you can ask for investors when you have a deal in hand. It doesn't mean all these people are going to invest, but the more you have the better.

Reply by a professional
from University of Michigan in Detroit, MI, USA

Hi ^redacted‌, the chicken and the egg come at the same time. While searching, you should be networking with investors. Understand what they're looking for in an investment. When you find the right business, you can bring it to them and seek a soft commitment.

+1 more reply.

Join the discussion