Women in Search Funds: Breaking Barriers and Building Success
Discover the growing impact and opportunities for women in the search fund industry. Learn from the experiences of trailblazing female entrepreneurs who are reshaping the landscape of entrepreneurship through acquisition.
Key Findings: A Decade of Progress
116
Women Launchers
Number of women who have launched searches since 2012
80
Traditional Searches
Women pursuing traditional search fund models
54
Search CEOs
Women who have successfully become search fund CEOs
5
Successful Exits
Number of women who have achieved successful exits
The 2023 Women in Search Funds Study reveals significant progress over the past decade. With 116 women launching searches since 2012, the industry is seeing a growing representation of female entrepreneurs. The success rate is promising, with 54 women becoming search CEOs and 5 achieving successful exits, demonstrating the viability of this path for women in business.
Demographic Profile: Mirroring the Industry
Professional Backgrounds
- Operations: 27%
- Management Consulting: 25%
- Investment Banking: 25%
- Private Equity: 16%
Age Distribution
Most female searchers launch between ages 26-35, with over 80% launching by age 35. This aligns closely with the general search population, indicating that women are entering the field at similar stages in their careers as their male counterparts.
The study reveals that women in search funds have diverse professional backgrounds, mirroring the general search population. This diversity of experience brings valuable perspectives to the search fund industry and demonstrates that women from various sectors are recognizing the opportunities in entrepreneurship through acquisition.
Search Experience: Navigating the Journey
1
Fund Raising
77% pursued traditional search funds, raising an average of $410k from 14 investors.
2
Search Duration
The average search duration was 19 months, allowing time for thorough market analysis and target identification.
3
Search Structure
60% searched solo, while those in partnerships often teamed with spouses (43%) or business school classmates (33%).
4
Gender Impact
67% found being a woman either benefited them or made no difference when dealing with business owners.
Acquired Companies: Sector Trends and Insights
Healthcare Focus
40% of acquisitions were in healthcare, twice the general rate in search funds.
Tech-Enabled Services
25% acquired software or tech-enabled services companies, showing a strong tech focus.
Remote Businesses
Over 20% of acquired businesses were remote, with 70% located on the coasts.
Women in search funds are showing a particular affinity for healthcare and technology sectors, potentially leveraging their unique perspectives to identify opportunities in these growing markets. The trend towards remote businesses also reflects an adaptability to modern work environments.
Challenges and Concerns: Expectations vs. Reality
1
Top Concerns
- Geographic inflexibility (44%)
- Uncertainty of outcomes (41%)
- Confidence in operating ability (39%)
2
Reality Check
Many concerns proved less problematic in reality, with 93% of CEOs being glad they chose search.
3
Main Challenge
78% of female searchers found uncertainty to be the most challenging aspect.
While prospective female searchers express concerns about various aspects of the search fund process, the experience of those who have gone through it suggests that many of these worries may be overestimated. The high satisfaction rate among search CEOs indicates that the rewards often outweigh the challenges.
Recommendations for the Community
Highlight Success Stories
Better showcase successful women searchers and CEOs to inspire and provide role models for aspiring female entrepreneurs.
Open Discussions
Foster more open conversations about family planning and work-life balance in the search fund context.
Demonstrate Commitment
Show tangible support by backing women and diverse teams in search fund ventures.
Facilitate Networking
Create more opportunities for networking and mentorship to support women throughout their search fund journey.
The Future is Bright: Growing Support and Opportunities
1
2
3
4
1
Increasing Role Models
2
Expanding Support Systems
3
Rising Interest in Search Funds
4
More Women Considering Entrepreneurship
The study concludes on an optimistic note, highlighting the growing community of women in search funds. As more successful female searchers and CEOs emerge, they create a virtuous cycle of inspiration and support. This expanding network is encouraging more talented women to consider entrepreneurship through acquisition, promising a more diverse and dynamic future for the search fund industry.