What are the incentives for investors to fund a search?

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July 30, 2021

by a searcher from University of Pennsylvania - The Wharton School in Toronto, ON, Canada

What are the incentives for investors to fund a search or for directly participating/helping in the search process?

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Reply by a searcher
from Rice University in Oklahoma City, OK, USA
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Reply by an admin
from Massachusetts Institute of Technology in New York, NY, USA
The main reason that traditional search fund investors invest in the search phase is that they have right of first refusal on any deals that you find. Also in the traditional model where you take search capital, the investors(collectively) are the ones with controlling interest in the business and not the searcher.
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