Self Funded Search Equity Raise - Minimum Equity Check Sizes

searcher profile

June 13, 2023

by a searcher from University of Pennsylvania - The Wharton School in Boston, MA, USA

Searchfunder community - I have a question regarding equity raises for self funded search deals.

Specifically, if a self-funded search needs to raise around 600 to 700K of equity, what is typically a minimum equity check for that kind of raise? I know it does depend on searcher preference but I was wondering if there was any aggregate data on what typical equity check sizes looked like for something like that

Thanks all

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commentor profile
Reply by a searcher
from Northwestern University in Los Gatos, CA, USA
For a decent business plan, raising this sized round from the self-funded investor community should be very quick and easy, though that’s only been true for about the last ~2 years.

I run a small list out of my network ~100 LPs) with check sizes ranging from 25k-3M with most in the 50-100k range. These rounds fill up quickly and tend to be fairly light on DD for deals that pencil and have a solid business plan. Glad to have more LPs join (https://www.cubinvestments.com/home/investors) and searchers who are raising money can send me inquiries via our form (https://www.cubinvestments.com/home/entrepreneurs) or email redacted
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Reply by a searcher
from University of Pennsylvania in Washington, DC, USA
Hey Ed, glad to see you on here, we haven't caught up in a while! Typically what I've seen is traditional search fund investors would want to write min ~$1M equity checks and also not be the only investor on the cap table. That being said, seems to be a gap in the self-funded equity raise world for <$1M. I think F&F would be the way to go, and ofc F&F can be more bespoke. As for specific data, have not seen any, but the SIG self-funded survey (basically replicating Stanford GSB's traditional survey, but for self-funded) is as comprehensive data for self-funded as I've seen, but imo not the exact answer to your question https://www.searchinvestgroup.com/study

We should catch up!
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