Does anyone have experience setting up a "pledge fund" in Europe?
September 23, 2021
by a searcher from INSEAD in Madrid, Spain
Hi community: As a self-funded searcher, I would like to combine the flexibility and independence of sourcing and deciding my own deals with the credibility and speed to secure funding of a traditional search funder who has investors neatly lined up.
Does anyone have experience and/or material on how to set up a "pledge fund", ideally in Spain/Europe?
Thanks, George
from Universidade Católica Portuguesa in Lisbon, Portugal
One of the reasons for that is that the whole purpose of the paper is to have a few number but not really commit anyone to anything. So if you have a minimum sophisticated buyer he will see straight through it and to get a lawyer to draft you that kind of paper can be expensive. Not even counting the amount of time it will take you to get people to sign them.
On the other hand, I've seen a number of people pull of deals with no funding whatsoever behind them and running .
Know it's not what you asked for but I would say get close and gain credibility with a few investors, do your diligence and show them how you work. If you need for credibility, once you're close enough to them they can join you on calls or put in a word with brokers, etc...
Feel free to DM me if you want to discuss further
from Northwestern University in Madrid, Spain
You may get some "support" letters and the like but probably hard to get committed capital without a deal / track record first. If you want to get those support letters, I would approach the usual suspects within the ecosystem