AmiSight 7/23: Entrepreneurship Without the Startup: The Search Fund Revolution

Millennials have found a way to ditch the corporate grind and become entrepreneurs with little or no experience running a company by using search funds – or entrepreneurship through acquisition, according to Business Insider.

The core idea behind search funds is that young people don't need to start their own business from scratch to become an owner-CEO. Instead, they can buy a business that already exists — one that comes preloaded with loyal customers, steady revenue, and a healthy profit margin.

While the United States has plenty of these types of businesses as aging boomers prepare to retire, most of them are hidden in the unglamorous, overlooked corners of the economy. These include car washes, plumbing, snowplowing, pool construction, dumpster rentals, grease trap maintenance, etc.

After raising an initial round of funding from investors to search for a business, these entrepreneurs raise a bigger round to acquire the perfect business for them and install themselves as CEO. Since the pandemic, the concept has really taken off, adding another $1.5 billion in the past four years.

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