Single Sponsor/Accelerator vs. Traditional - Pros/Cons?

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December 18, 2020

by a searcher from The University of Texas at Austin - Red McCombs School of Business in Austin, TX, USA

Hello - I’m an MBA candidate at a top 20 B-school in the process of figuring out if I want to go the single sponsor/accelerator route (think SFA, NGP, or Halstatt) or follow the traditional raise method. Would appreciate anybody giving their 2 cents on how I should decide what is right for me!

My thought is that this will influence what I should try to do for a summer internship.

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commentor profile
Reply by a searcher
from University of Notre Dame in Cambridge, MA, USA
That is what a summer internship is meant to do; allow you to figure this out first hand. I will second ^redacted‌'s comments. Sole Funder restricts you much more than traditional, and traditional restricts you much more than self-funded. I am doing self-funded simply because it allows me to consider deals I would not be able to and allows me to leverage my experience vice just being a MBA graduate.
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Reply by an investor
from Carnegie Mellon University in Philadelphia, PA, USA
Another consideration is getting a regular job for a few years and then doing a self funded search. Investors take an incredible amount of equity from you and really restrict the companies they allow you to buy. But I also have MBA classmates who are very happy with their immediately post MBA acquisitions.
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