Resources for fundraising (for beginners)?

searcher profile

September 05, 2023

by a searcher from Liberty University in Austin, TX, USA

Hi all, I'm a new self-funded searcher in Austin, TX (link to more context below). A month in, it's becoming clear that companies matching my personal criteria will require some outside investment. Businesses in my original price range ($1-2m) don't have the level of stability I'm looking for.

I'd love any guidance or resources the community here could provide on fundraising. I'm an experienced founder, but I bootstrapped my company and didn't go to a top-tier MBA program, so I don't have the experience or network needed to jump right in.

I understand that finding solid deals is a prerequisite for getting investors, but I'd like to have a more clear understanding of what fundraising looks like. Where do you find investors? What sort of deal structures are common? Etc.

For a bit more context on my search so far, I've been building in public here: www.im-buying-a-business.com. Any advice — even outside of fundraising — would be much appreciated!

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commentor profile
Reply by an investor
from Western Washington University in Key West, FL 33040, USA
Hi Taft, my firm manages a fund that provides equity to self-funded searchers. This Twitter thread: https://twitter.com/Slackwatercap/status/1673782355478163458 as well as this podcast Lisa put together provides a general overview on equity structuring: https://www.youtube.com/watch?v=HpWO2BAZx8A&ab_channel=LiveOakBank
commentor profile
Reply by a searcher
from Southwestern University in Houston, TX, USA
A significant portion of self-funded searchers use a combination of an SBA loan ($5MM loan max) and either their own money for the down payment or equity investors for the same.

If you have experience in the industry that you're acquiring in, it'll make it an easier purchase. If not, it might make sense for your first aqcuisition to be in that industry and then pivot to the industry you want.

Your first business is the hardest to purchase.
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