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A few months ago we published an article called “How to prepare for your interview with SF investors: the usual questions you will be asked.”
But the meeting is not only about your background, thesis, motivation, and ambition. Every conversation is a two-way evaluation:
- Investors are assessing whether you can lead a company.
- You should be assessing whether you want them by your side for the next 6–8 years.
Because once they’re in, they’re in. The quality of that relationship will shape your experience during the search, the acquisition, and especially when things get tough.
Raising capital for your SF isn’t just about getting commitments; it’s about choosing the right partners, people who’ll stand beside you through uncertainty, diligence fatigue, tough negotiations, and post-acquisition turbulence. Professionals who can mentor and guide you throughout the process, and who can back you when you need to make a hard call.
Here are a few questions every searcher should ask potential investors:
1/ On alignment & investment thesis:
- What excites you about the SF model right now?
- What type of searchers or businesses do you tend to back?
- How do you see the market for SME acquisition evolving?
- What’s your average ticket size?
- How do you define a “successful” search or investment?
2/ On support & involvement:
- How do you typically support searchers during the acquisition phase?
- What’s your approach once the company is acquired: active or more hands-off?
- What value do you bring? Do you have a playbook to share to help me during the first 100 days?
- Can you share an example of when you helped a searcher through a difficult situation?
- Who in your network could help me once we own the company?
3/ On process and expectations:
- What’s your decision-making process and timeline?
- How do you think about follow-on funding?
- What happens if the search takes longer than expected?
- What would make this a clear “yes” or “no” for you?
4/ On fit and portfolio:
- How do you like to communicate and stay updated?
- How many active searchers or operating CEOs are you currently backing?
- What do you value most in your relationship with a searcher?
- Could I speak to one or two searchers you’ve invested in?
5/ Ask about the hard stuff:
- What happens if I don’t find the right company within the search period?
- How involved do you get when things aren’t going well after the company has been acquired?
- What’s your approach to follow-on funding or tough turnaround situations?
- Have you ever had to dismiss a searcher? What happened?
Great investors will welcome these questions and respect that you want to know who you’re bringing on board. Ask the hard questions to get real answers and avoid future problems.
Fundraising is not about finding any investor. It’s about finding the right partners, the ones whose values, patience, and judgment match your own. Make that choice deliberately. It’s easy to say and hard to do, but you are not chasing commitments and just asking for capital, you are selecting the right partners, so take your time and ask for references.
