Exploring Various Search Fund Structures

Searchfunder Community -

Once an aspiring entrepreneur decides to pursue a search fund, the next key decision is exactly what type of search fund structure will be used. As search funds have proliferated, the search fund vehicle itself has iterated, permutated, and expanded to include multiple ways to pursue this enticing entrepreneurial path. What was once a 'one size fits all' approach to search funds has morphed into a wide array of choices. We think this expansion of choices for aspiring entrepreneurs is fantastic. It allows prospective ETA entrepreneurs to find a vehicle that best suits their goals and needs. Additionally, more choices likely increase the probability of finding an advantageous fit and producing a successful outcome.

The purpose of this case note is to illuminate all the current ways a search fund can be structured(see Figures 1 and 2). It is not our aim to assess the best way to pursue ETA – we do not think there is a single best approach. We do believe that there is a best method for each individual considering this entrepreneurial pathway. We hope this note will assist aspiring ETA entrepreneurs in discovering their best particular search fund structure.

Click here to read the Case Note: https://yale.box.com/s/mqbcrk2gxey2fkesextgq4ij6oufe8w0