Suggestions
Bakul Badwal
Research Analyst at Cryptoeq
Highlights
GSB’s Primer on Search Funds (vehicle for Entrepreneurship via Acquisition) is the ultimate overview of raising a fund for #ETA: https://lnkd.in/e2zMFvYg
✅ Premise: Purchasing cash flows via acquiring an existing business in a stable, growing industry vs. founding cash flows from scratch or in the hyper-growth VC-funded startup model is a viable entrepreneurial option offering a direct path to the CEO role, equity ownership, hands-on operational and deal experience, and more.
Countless models re: the deal & operational strategy.
ETA is an resurgent area in which owner-entrepreneurs acquire and operate a small to mid-market business, usually raising a fund to do so from a mix of equity and debt investors who are increasingly investing in this growing asset class by backing ambitious MBA students or later career professionals.
✅ 4 Stages: (i) Raise the fund (2-6mo.) (ii) Search and close the deal (acquisition, 12-18mo.) (iii) Operation and value creation (4-7+ yr) (iv) Liquidity event (exit, 6mo).
Traditional vs. self-funded search: The traditional model involves raising from equity investors who provide support re: diligence, legal, corp. governance, and further post-acquisition. A self-funded search carries more risk with the chance for more equity ownership.
✅ Why: Many SMB to mid-market businesses lack succession plans; ETA has become a growing asset class with an increasing number of FoF and other players involved at all tranches of the capital stack.
If you're interested in or actively pursuing ETA / #searchfund (whether an incoming / current #MBA student or otherwise):
Amongst top MBA programs outside of HBS/GSB, Booth offers the largest ETA presence & resources, followed by Kellogg, Wharton, MIT, Georgetown, Duke, UVA, Yale, plus several others.
Two ETA conferences this fall: https://lnkd.in/eNj4Ft5s (Booth/Kellogg) and seetaconference.org
I’m excited to join Iron Key Capital to aid in all things business development and deal sourcing, plus for our Venture Fellows and Venture Partners as a BD Executive.
Iron Key comprises a venture studio and investment fund for pre-seed and seed stage web3 startups, focused on enterprise + consumer adoption of digital assets, with a one-of-a-kind web3 VC Fellowship program for emerging investors to build their angel / venture investing skills.
