Sourcing Self-funded Investors

searcher profile

February 20, 2020

by a searcher from Columbia University - Columbia Business School in New York, NY, USA

I'm curious how often self funded searchers have had to reach out to investors that they didn't have an existing relationship with (non family/friends/former employer/, etc.) and how much success they had in getting self-funded economics (e.g. 50% common equity) from them? Is there a database of self-funded-economics friendly investors out there?

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commentor profile
Reply by a searcher
from Babson College in Arlington, VA, USA
Same way you would reach out to anyone without a warm introduction - make it relevant, concise, and cast a wide net. You would be surprised at how many retired executives and even working professionals are looking for alternative investments. Terms will be up to you and the individual to agree to, which is why it makes sense to talk to a lot of potential candidates. While there is no "database" that I'm aware of per se, LinkedIn or your alumni database are probably good places to start. Likewise, depending on your industry, there may be trade associations, etc. you can tap into. The biggest factor, I believe, is just getting out there, talking to people, and overcoming any reluctance to do so. Worst someone can say is, "No."
commentor profile
Reply by an investor
in Tampa, FL, USA
I think it's just a matter of networking and meeting people. I signed up here to network with searchers so I can find deals to invest in as an individual private investor. I think it would also be helpful to attend the various business school based search fund conferences.
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