Typical Terms for a Search fund

by a searcher from University of Virginia-Darden - Darden School of Business

2 years ago

Hi All,

I have previously done a self-funded search and successfully closed a buy-in.  I am looking to learn how a searchfund works as I am incubating a few ventures and being requested to support some searches.  Appreciate any sources or tips.  Some questions on my mind.

1. What all the fund covers in terms of costs/expenses?

2. What's the typical duration of a searchfund?

3. Is the founder/entrepreneur expected to contribute?  How much?

4. Does the founder/entrepreneur draw a salary from the fund?  How much?

5. Where can I get any standard termsheet or agreement templates?

6. Any other important things to know?

Thanks all!

-Naresh

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3 comments

searcher from Columbia University - Columbia Business School

I downloaded the Stanford doc. it is great. thanks

1 year ago | like reply | 0 likes

searcher from Northwestern University - Kellogg School of Management

The best primer on the topic is from Stanford: https://www.gsb.stanford.edu/experience/about/centers-institutes/ces/research/search-funds/primer (and the answer to all your questions is it depends)

2 years ago | like reply | 1 like

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