Which model involves investors backing entrepreneurs in their search for a company to acquire?

The model that involves investors backing entrepreneurs in their search for a company to acquire is known as a Search Fund. This particular approach focuses on enabling aspiring entrepreneurs to raise money from investors with the intention of finding, acquiring, and operating a single business. The funds raised are typically used to search for suitable acquisition targets, with the understanding that the entrepreneur will take an active role in managing the acquired company.

Investors in a Search Fund are not simply providing capital; they are also supporting the entrepreneur's leadership journey, which sets it apart from other funding models. Hence, this model is strategically designed for individuals who are keen on entrepreneurship through acquisition rather than starting a business from scratch.

In contrast, Bootstrapped Funding usually refers to self-funding a business venture without external investment. Venture Funds focus on investing in early-stage companies with high growth potential, and Equity Funds typically involve investing in various assets through equity rather than specifically targeting acquisitions by entrepreneurs. Each of these other models serves different purposes and structures that do not align with the specific goal of seeking acquisitions through investor-backed entrepreneurial efforts as found in the Search Fund model.