Does a geographically focused search hinder the capital raise / deal flow?

searcher profile

November 01, 2019

by a searcher from Ivey Business School at Western University in Toronto, ON, Canada

I'm trying to gain a better understanding of the potential risks associated with a geographically focused search. I suspect this might make it more difficult in raising the initial search capital (attracting investors, etc.), as well as limiting potential deal flow.

Any insight on this topic from both the Searcher and Investor community would be greatly appreciated - thanks!


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commentor profile
Reply by a searcher
from Harvard University in Fort Wayne, IN, USA
Depends on the size of the city / metro area you are in. 500,000+ and you should be okay (if you have some flexibility on industry, are looking for smaller deals, and have time to find the right deal).

I had planned to look in a larger geography, but have had plenty of deal flow in a city with 300k.

It’s Covid craziness right now, I’m searching in a fairly open city (not locked down), and I haven’t closed a deal, so take all the advice above with a grain of salt!
commentor profile
Reply by an investor
from Hobart and William Smith Colleges in Dorset, VT, USA
Bump. If you're in a decent sized metro area there is a theory of having enough opportunity nearby and greatly extending the life of your search by having basically zero travel expenses or inefficiencies.
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