How would it work if a dual search team were to raise a traditional search fund and then find a deal that would allow them to retain higher equity percentage by leveraging an SBA or other non-dilutive funding? How would this impact the ROFR in place with the initial investors?
More on Searchfunder
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.
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.
As a self-funded searcher, I regularly get deal flow from traditional searchers who look at a deal and say something to the tune of: "This looks like a great business, but my investors don't like this industry/these characteristics/location/etc but you should take a run at it." meaning that the business could be taken down by a self-funded searcher.
Accept the fact that you are making a tradeoff of less equity for less personal financial risk, having a board of experienced investors, and having committed capital.
There are very few right answers, only tradeoffs.