Raising a search fund without US visa (yet)

November 22, 2024

by a searcher from Erasmus University Rotterdam in Singapore

I'm contemplating starting a search fund in the US. I don't have a US visa (holding a Dutch passport). However, successfully raising and setting up a search fund would give me a (pretty much guaranteed) clear path to getting a visa. Next to this, I've the possibility to apply for an O1 visa already, but processing time is about 6 months.

Question to investors: is not having a visa when raising a search fund a "red flag" by definition? In other words, should I arrange the visa first before thinking of raising a search fund?

Reply by a searcher
from Stanford University in Paris, France

As a Dutch search fund investor who has spent over 20 years in the US, I would say 1) I would not want to invest in a searcher who has a visa contingency, so I would say while you can start talking to investors before your visa comes through, I would not expect them to commit before you have it. Maybe more importantly, 2) I think you'd need a compelling rationale for you searching in the US, where it does not seem you have lived or worked before, particularly since your background seems much more startup than SMB oriented.

Reply by a searcher
from Erasmus University Rotterdam in Amsterdam, Netherlands

Fellow Dutch here that spent a lot of time in the US. It's definitely not a red flag / deal breaker. Especially if your investor base is outside of the US, or if you have strong contacts with investors already. You won't qualify for SBA loan and most likely won't get any sort of traditional financing without having permanent residency.

O1 is very unsure, so wouldn't go that route. E2 is much more easy and straightforward to obtain.

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