Search funds on-chain - feasible or just a dream?

[di4biz]

Over the past few weeks, I’ve been reading and analyzing many of the interactions in this forum, trying to figure out if the community could be a good fit for a project I’m working on. What I’ve noticed is that, among the majority of traders chasing the quick buck, scam artists, and “zombies” who barely think for themselves, there are still some people whose vision I consider close to mine, libertarian, confident in decentralization, in the technology, and in the future that BTC can bring us.

Over the last few months, I’ve been actively working on starting a search fund. As a business dev, I work with entrepreneurs who, due to lack of succession, retirement, or health reasons, are looking to sell their businesses or parts of them. These are stable, non-speculative businesses in recession-proof sectors like healthcare, senior care, and blue-collar services. I’m currently preparing documentation to present to some VCs, funds, angels and banks. But I keep asking myself, why do I always have to go through the same institutions and players, instead of going directly to the people?

So here’s the question: is it possible, in this space and at this moment, to gather a group of 5 to 10 “investors” who want to diversify their portfolio, create a search fund/pool, and use those funds as collateral in a protocol, borrowing against it, secure it in escrow, backed both by the company’s assets and by third-party insurance? That way, we could continue growing the business and the investors theirs portfolios, with an extra, conservative returns on the borrowed amount, split 80/20 on annual profits and assets appreciation. Would this be feasible? Please let me know.

And if you’re interested, or can add any value to this, feel free to message me on Telegram @di4biz and let’s set up a meeting.

[Vod]

You must realize that people with bitcoin to invest think of this idea all the time, and many such partnerships have formed here.  However, without knowing what level of investment you want to play with, it's not worth looking more into.   You should start by signing a message showing how much you have made from investing.

[Yamane_Keto]

So here’s the question: is it possible, in this space and at this moment, to gather a group of 5 to 10 “investors” who want to diversify their portfolio, create a search fund/pool, and use those funds as collateral in a protocol, borrowing against it, secure it in escrow, backed both by the company’s assets and by third-party insurance? .

Not possible. newbie account, without explained what investing is, its limits, returns, guarantees, and legal contracts.

[di4biz]

You must realize that people with bitcoin to invest think of this idea all the time, and many such partnerships have formed here.  However, without knowing what level of investment you want to play with, it's not worth looking more into.   You should start by signing a message showing how much you have made from investing.

To reiterate, I’m an operator/business developer who helps owners digitize, reduce expenses, and scale their businesses to the next level, not an investor. And let’s not forget, I’m talking about a search fund, “an investment model that enables an entrepreneur, or "searcher" to raise capital from investors to find, acquire, and operate a mature, profitable private business.”

Not possible. newbie account, without explained what investing is, its limits, returns, guarantees, and legal contracts.

And I completely understand your concerns, but the whole “newbie account” issue was unnecessary. I provided a channel for us to talk personally and even offered to organize a meeting, so it’s not a matter of lacking KYC. Regarding the investment, I can say that I don’t yet have the perfect structure defined, as I’m still exploring all possibilities and ways to mitigate risk in DeFi. This thread was meant to help me understand exactly that.

The idea will always be to keep the investor’s collateral exposed to the upside of the asset’s growth, especially BTC, while allowing us the company, to find a way to borrow against that collateral at low interest, mitigating the risk of the debt becoming more expensive as the asset grows, using futures, swaps, or other tools. As an investment, we’re looking for sufficient collateral to borrow the valuation amount of the commercial property, where the company operates. We’re talking about $7.5M or €6,4M valuation, which will be used as collateral in a dedicated entity for investors. With this amount, we would purchase both the company and the asset. Everything legal, with contracts and proper conditions. So again, my question is, what’s the best way to put this into practice?

[NotATether]

The more pressing issue is that there are hardly any investors here, let alone suitable ones. Also, OG whales don't count as investors, as they just hold.

You might have better luck pitching our idea in X/Twitter DMs or on the timeline. There are way more bitcoin investors there who might be interested.

[di4biz]

The more pressing issue is that there are hardly any investors here, let alone suitable ones. Also, OG whales don't count as investors, as they just hold.

You might have better luck pitching our idea in X/Twitter DMs or on the timeline. There are way more bitcoin investors there who might be interested.

I appreciate that. A whale alone could indeed act as a passive investor by providing the collateral for the loan. Still, thanks for the tip, I’m just not sure how easy that route would be, since building a following could take much longer than going to the usual players

[Vod]

To reiterate, I’m an operator/business developer who helps owners digitize, reduce expenses, and scale their businesses to the next level, not an investor. And let’s not forget, I’m talking about a search fund, “an investment model that enables an entrepreneur, or "searcher" to raise capital from investors to find, acquire, and operate a mature, profitable private business.”

So you do not want to be involved in the investment of other people's coin - you just want to provide a service to put developers and investors together and you take a couple % as a service fee.  No trust needed and you can get started without any investment. 

[di4biz]

To reiterate, I’m an operator/business developer who helps owners digitize, reduce expenses, and scale their businesses to the next level, not an investor. And let’s not forget, I’m talking about a search fund, “an investment model that enables an entrepreneur, or "searcher" to raise capital from investors to find, acquire, and operate a mature, profitable private business.”

So you do not want to be involved in the investment of other people's coin - you just want to provide a service to put developers and investors together and you take a couple % as a service fee.  No trust needed and you can get started without any investment. 

What do you mean? I want to be fully involved, that’s why I’m putting both my know-how and my own money into the business as well. I just can’t support it alone, I’m not at that stage yet. This isn’t some middleman play. I actually work in these businesses on a daily basis, I’m simply looking for alternative ways to fund the acquisition, otherwise, I’ll just end up going to the same old groups.

[Vod]

So you do not want to be involved in the investment of other people's coin - you just want to provide a service to put developers and investors together and you take a couple % as a service fee.  No trust needed and you can get started without any investment. 

What do you mean? I want to be fully involved, that’s why I’m putting both my know-how and my own money into the business as well. I just can’t support it alone

Then sign a message showing what level of investment you are playing with.  This is the first thing I asked for, but you said you were not an investor. 

[di4biz]

So you do not want to be involved in the investment of other people's coin - you just want to provide a service to put developers and investors together and you take a couple % as a service fee.  No trust needed and you can get started without any investment. 

What do you mean? I want to be fully involved, that’s why I’m putting both my know-how and my own money into the business as well. I just can’t support it alone

Then sign a message showing what level of investment you are playing with.  This is the first thing I asked for, but you said you were not an investor. 

My main funds are not on-chain, I only keep small investments in crypto.

We’re talking about $7.5M or €6,4M valuation, which will be used as collateral in a dedicated entity for investors.

The capital I’m looking for will be fully covered by a real estate asset, and any amount above that will be taken on by me personally. And once again, if I had the financial capacity to support the investment on my own, I wouldn’t be looking for investors right now.

[Vod]

My main funds are not on-chain, I only keep small investments in crypto.

Then how much "know-how" can you provide on investing other people's coin?   I think you'll need to prove some parts of your story before anyone will take you seriously.

[di4biz]

Then how much "know-how" can you provide on investing other people's coin?   I think you'll need to prove some parts of your story before anyone will take you seriously.

What do you mean by “know-how on other people’s coin”?

First, I’m not making up any story. I’m looking for serious people who want to diversify their investments into real companies that produce value for society, not some random ICOs or projects that raise capital and never deliver. We’re talking about real businesses that provide products and services to people. And to be clear, the one I’m raising capital for, couldn’t have a better purpose than continuing the operation of a senior care facility.

Second, the only projects I support in the crypto space are the ones I see as having real value for people’s future. Right now, I hold four in my portfolio, being most BTC, HNT and LINK, so I don’t buy into noise.

Third, I could easily go the route of VCs and banks, like I’ve done for some of my clients. But, as I said, I’m looking for less bureaucratic alternatives and something beyond the same old winners.
So rest assured, I’m all about honesty, you shoot me a message and I’ll answer any questions you have. Thanks.

[DireWolfM14]

First, I’m not making up any story.

First off, made up story or not, you're an utter fool if you think anyone is going to hand over $6.5 million to a complete stranger, a new acquaintance, or even longtime friend without a proven track record.  Vod is asking you to show proof of previous experience.  Without it, I can think of a million things I'd rather do with my money than hand it over to someone who's dream is to make himself rich by risking other people's money.  Flip the tables, and think this through...  

Here's some more advice; don't be a retard.  Digging your heals into retardation won't change how foolish of a request this is, and I've seen some doozies during my time here.  They don't end well for the retards.

If you care about your account, lock or delete that retarded thread you posted in the lending board.  The old guard don't take kindly to newbies asking for $65 without collateral, let alone $6.5 million.  It's up to you but if you don't take my advice, someone will surely come along and "spice things up" on your trust page.