Anyone interested in a Startup Investment SPV - Searchfund Approach?

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July 12, 2024

by a searcher from ESCP Europe in Berlin, Deutschland

What do I mean? I am a former founder, angel investor and VC with a good deal flow and would provide access to that deal flow by building investment vehicles.

Why searchfund approach? Similar to a search fee, I would ask for a non-binding commitment and an approximate maximum amount you are willing to invest, but not charge an actual fee. --> No Search Fee. I would look for interesting deals in the range of your capital commitment, do due diligence and present you with the best deals, and only when I have convinced you would I call the capital. In case of liquidation, I would take 20% carried interest (no hurdle).

A 2% annual management fee (post-deal) covers the cost of the vehicle, I do the portfolio management and administration of the SPV. Smart money investors with valuable knowledge for startups would be preferred, but not a must.

Long story short: No initial investment, no hard commitments (Only Soft, for better planning and focused startup sourcing).

Is anyone interested in this approach to finding startups and an exciting approach to this asset class? Hit me up!

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Reply by a searcher
in London, UK
Hi Tobias, interesting approach, definitely keen to know more.
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