SELF-FUNDED VS. TRADITIONAL (HOW MUCH EQUITY IS TOO MUCH?)
I have read up on this site and seen instances where self-funded searchers manage to negotiate substantial more common equity than traditional searchers (i.e. >50% versus 20%-30%) however I've usually seen that when the total investor equity raise is about $1m - $2m with a pref interest rate of 10% or more.
I'm wondering whether self-funded searches able to negotiate something similar if the total equity raise is $5m versus $1m? Obviously there's a lot of assumptions here but for the sake of argument, lets assume that investor level returns are still 20%-30%.
Would investors go for that or is $5m too large of an equity raise?