COVERING COSTS IN SEARCH FUND FUNDRAISING PERIOD
I'm considering launching a traditional solo search fund, My understanding is that fundraising for the search fund itself may take as long as 6 months (~3 sounds more common.) I'm in a stable financial situation, but 3-6 months' lost income would definitely leave a dent.
I have a few questions around how searchers managed cash burn during this fundraising period:
- What tactics, if any, have other searchers used to cover the costs of fundraising and any legal, travel, or other expenses incurred throughout the process?
- Is there precedent for searchers considering this time investment "sweat equity," earning themselves a unit in the fund?
- Is the process time intensive enough such that picking up freelance work or consulting income is a bad idea?
Appreciate any thoughts or feedback. Thanks!