Self-funded search vs. traditional search: what fed that decision?

searcher profile

October 03, 2024

by a searcher in Chicago, IL, USA

SF Community!

For any active searchers out there, how did you decide between self-funded vs. traditional search? Was it just a matter of being able to raise funds, or did you think of something else? I'm beginning to raise a fund, but want to understand how others thought about theirs (i.e., did anyone attempt self-funded and switch? Or vice versa?) Thanks!

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Reply by a searcher
from The University of Chicago in 2122 W Le Moyne St, Chicago, IL 60622, USA
After evaluating both, I chose a self-funded search for the flexibility and autonomy:

1) I wasn't willing to move anywhere in the country, so needed to run a geographically focused search. Typically, traditional search investors will want you to be geographically flexible.

2) I wanted to retain control of the company, i.e. >51% of equity, and was willing to do a smaller deal to achieve that.

3) I was somewhat later in my career than a typical searcher, and could get by with limited income during the search timeframe.

My main personal reason for pursuing search in the first place was to not have bosses, so self- funded was a better route for me.
commentor profile
Reply by a searcher
from Purdue University in Elkhart, IN, USA
Risk consideration and cash burn rate to support my family are the biggest factors personally. I'm also focused geographically, and I don't want to put a time stamp on something that shouldn't be rushed. There are many other factors I considered, and continue to consider, as a result of work and life experiences, I would be happy to share more if you would like to send me a direct message.
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