Self Funded Search Equity Raise - Minimum Equity Check Sizes

by a searcher from University of Pennsylvania - The Wharton School

1 year ago

Searchfunder community - I have a question regarding equity raises for self funded search deals. 

Specifically, if a self-funded search needs to raise around 600 to 700K of equity, what is typically a minimum equity check for that kind of raise? I know it does depend on searcher preference but I was wondering if there was any aggregate data on what typical equity check sizes looked like for something like that

Thanks all

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searcher from University of Pennsylvania - The Wharton School

Mason! Long time indeed - let me DM you

1 month ago | like reply | 0 likes

searcher from Harvard University - Harvard Business School

Ed, long time no see! Shoot me a note, happy to chat in some more depth if you like. To your question about minimums for a raise this size, I'd treat ~$75k as a good "goal floor," with some willingness to make room for friends & family, mentors, etc. who for whatever reason may only be willing or able to accommodate a smaller check. You don't want to be wrangling 20+ individuals, and generating that many K-1s, if you can avoid it. So a handful at###-###-#### , one or two at 20-50, and a couple at###-###-#### , could get the job done well. No aggregate data backing this up, just a handful of anecdotal observations.

1 month ago | like reply | 0 likes

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