How can I raise investor interest while engaged in self-funded search

by a searcher from Brigham Young University

5 years ago

I'm starting a self-funded search and feel like I should be trying to attract investors so that I can raise capital fast post LOI. I also feel like it can give me a better idea of the how much I might be able to raise. I appreciate any insight anybody is willing to share.

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3 comments

searcher from Harvard University - Harvard Business School

Good advice. Also, in regards to how much you can raise. Use your model and 25% IRR as a rough hurdle rate. Then back solve the amount of equity you can keep/ need to give at projected outcomes (give yourself a range on multiple variables you think may be asked/ pushed on)

5 years ago | like reply | 4 likes

admin from Massachusetts Institute of Technology - MIT Sloan School of Management

Most searchers will show a set of investors a few deals before they finally make an acquisition. I think the best way is to just start searching and when you find a company which you are ready to give an IOI (not necessarily an LOI), start engaging investors with a deal in hand.

Most likely these first deals will not work out, but you will have built a relationship with some investors. It is much easier to talk about something concrete than a nebulous idea of what you're after.

You can try going to deals ( https://www.searchfunder.com/deal/mydeals ) and adding a deal in your pipeline. It will then pull up investors which match the criteria of that deal. You can then decide if you want to contact them.

5 years ago | like reply | 2 likes

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