Are self-funded searchers approaching friends & family?

by a searcher from Carnegie Mellon University - Tepper School of Business

1 month ago

Curious to know if any other self-funded searchers have approached their family and/or friends for small investments to cover diligence and other out of pocket expenses related to their search.  

https://7cncaftrkz6.typeform.com/to/GbGYejY2.  See results after you answer.

0 likes
119 views
13 comments

searcher from University of Pennsylvania - The Wharton School

Of course, happens all the time in the VC world but tread carefully as many have commented. Ultimately, they believe in you so if the business falters, were they clearly aware of the risks and are they satisfied the failure was unavoidable/not of your doing? It helps to keep them informed along the way but you definitely want to keep an arms length distance to them...last thing you need is a backseat driver in the front seat of your business.

1 month ago | like reply | 0 likes

searcher from Babson College - F.W. Olin Graduate School

I believe that like others have said - it depends. If a friend or family member is fully aware that there is a risk of loosing their money, but they do not mind. I will be glad to take their money.

1 month ago | like reply | 0 likes

More on Searchfunder

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

Equity structures in self-funded deals

Self Funded Search - How to price the equity?

Free Playbook to Increase Valuation & Exit Price

How to spot FAKE EBITDA, without spending a nickel on due diligence...

Lessons learned from failed SBA financing

Reducing Broken Deal Costs for Self-Funded Searchers?

Buying a Franchise

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.