Staggered funding for the search phase

searcher profile

August 05, 2022

by a searcher from Universidad Panamericana in Guadalajara, Jalisco, Mexico

What would you answer to a possible investor who wants to staggered funding for the search phase? That is, instead of investing $50k since the beginning, invest $2.1k monthly depending on the advances on the search. I believe is very risky for the searcher, but it may be helpful to attract investors.

1
8
98
Replies
8
commentor profile
Reply by a searcher
from Escuela de Ingeniería de Antioquia in Medellín, Antioquia, Colombia
Francisco, the offer is 100% viable because it assumes you'll find the company within 23 months at most. You should have a lawyer help you draft the contract carefully so the investor is obligated to pay you $2.1k each month. Good luck
commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
The bigger problem is when brokers and sellers say, “Show me your money for the investment.” An empty equity account (of cash) is not impressive. And it widely opens the door for buyer competition.
commentor profile
+6 more replies.
Join the discussion