How much initial capital does a searcher need to raise?

The initial fundraising phase requires searchers to raise between €300,000 and €500,000 from approximately 15-20 individual investors. In France and Europe, €360,000 is a common target, while North American search funds may raise closer to $500,000. This capital serves multiple purposes during the 18-24 month search period. The largest component covers the searcher's personal salary and benefits, allowing them to focus full-time on finding the right acquisition target without financial stress. Typical searcher salaries during the search phase range from €60,000 to €80,000 annually, depending on the market and the searcher's previous compensation level. Additional expenses include office infrastructure (coworking space, technology, communications), travel costs for meeting potential sellers across regions, professional fees for legal advisors, accountants, and business brokers, marketing and outreach expenses for contacting target companies, and due diligence costs when evaluating promising opportunities. The fundraising typically involves individual investors contributing between €15,000 and €30,000 each, creating a diversified base of support. These investors are often successful entrepreneurs who have exited their own businesses, family offices seeking direct investment opportunities, former private equity professionals, and experienced business angels familiar with the search fund model. The structure creates alignment because investors know they are backing the individual searcher first, with the specific business opportunity to be determined later. For aspiring searchers, the fundraising process itself serves as validation—successfully convincing 15-20 sophisticated investors to back your search demonstrates credibility and relationship-building skills. Many searchers leverage their professional networks, business school alumni connections, and referrals from previous search fund investors to build their investor base. The search fund community is relatively tight-knit, with experienced investors often introducing aspiring searchers to their networks.