Constructing a Cap Table for the PPM

by an investor from University of Birmingham

1 year ago

I have recently had conversations with a couple of potential investors.
After having shown them my PPM, some have mentioned that it was lacking a cap table. I have struggled to find any examples of cap tables specific to search funds. I was wondering if anyone has had experience in building search fund cap tables to slot into the PPM?
Are search fund cap tables the same cap tables that one would expect to find in other asset classes? Are there any details specific to search funds that are important to include?

Thank you for any insight that you may be able to give.

1 like
274 views
9 comments

searcher from IE Business School

Hi Darnell - Try to add a section on your PPM that refers to Investor Validation or Committed Investors. It is useful for Institutional Investors to know if someone on your previous job or any academy professor will participate in your cap table.

1 year ago | like reply | 0 likes

investor from Harvard University - Harvard Business School

Hi Darnell - I agree with what others have already said RE the importance of clarity on unit prices and number of units. Speaking just from my own experience investing in traditional search in the UK and Western Europe, it is very unusual to include a cap table in the PPM, since this is likely to move around considerably through your fundraising process. Orlando’s suggestion of sharing a ‘no-names’ investor list and indicative units is more common (usually shared in a document/email separate to the PPM), and may help to reassure investors who are looking to understand who else is involved.

1 year ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.