LenderHawk analysis. Not affiliated with or endorsed by Search Funded: The ETA Podcast.
Ibrahim and Khaled return to discuss Moonbase Capital’s $5 million first close and how that fundraising got easier once they had operating proof points. They also lay out their “search fund squared” model for backing searchers with a smaller, highly engaged LP base, active advisory support, and a portfolio-oriented approach to risk. The conversation compares Europe and the U.S. search-fund ecosystems, especially around investor composition, crowding, and how much strategic help searchers receive.
Search-fund investors, searchers, and ETA ecosystem participants who want a practical look at fund formation, investor value-add, and how the European market differs from the U.S.
A first close becomes materially easier once a fund can point to real investments, because track record matters more to LPs than a polished pitch alone.
Moonbase positions search-fund investing as diversified portfolio exposure rather than single-company risk, arguing that a one-ticket investment can spread across roughly 25 companies.
European searchers are increasingly able to raise quickly because the market now has more LPs and more searchers at the same time.
The European ecosystem is becoming more crowded in Spain than in Italy, France, or Germany, and that difference appears tied to earlier adoption and stronger local history.
Searchers in Europe increasingly expect investors to add strategic value, not just capital, because many LPs come from finance rather than operating backgrounds.
Moonbase’s model is built around a smaller LP base with higher minimums, which is intended to keep attention concentrated and make support more hands-on.
The first 90 to 180 days after acquisition are treated as a critical support window, with monthly check-ins and optional advisor calls used to solve specific issues.
Moonbase sees its role as preserving searcher autonomy while making advisors and LPs available on demand rather than forcing heavy-handed oversight.
Moonbase’s model takes the traditional search-fund support structure and applies it one level up to the investor base. Instead of maximizing LP count, it emphasizes a small set of investors who can actively help searchers, join committees, and potentially co-invest or provide expertise.
When to use: Use this when building a search-fund platform or evaluating whether a fund should be optimized for capital aggregation versus hands-on value-add.
Moonbase raised $5 million for its fund and is now raising a second $5 million closer.
The hosts discuss how the first close changed investor receptivity for the next round.
Moonbase wants to invest about 15 million euros across roughly 25 companies.
Ibrahim explains how diversification drives the fund’s risk profile.
Traditional PE may deploy 15 million euros into one company, while Moonbase spreads similar capital across many companies.
Used to argue that search-fund portfolios can be less risky than conventional private equity.
Moonbase has already made two investments and expects two more within a few months.
The fund is described as active even before the full raise is complete.
The team has a pipeline of around 16 searchers already invested in.
This is cited as evidence that the fund’s model is already in motion.
Some advisors are willing to invest with a minimum of 100,000 euros because they are treated as part of the platform.
The fund offers advisors a lower entry point than regular LPs.
Start fundraising with people who know you or know people who know you before approaching broader LPs.
Why: A warm network helped Moonbase close its first 5 million more reliably than a cold institutional process would have.
Build operating proof points before trying to raise the next tranche.
Why: Having a first close and two investments made the second fundraise substantially easier.
Keep your LP base smaller and set a higher minimum ticket if you want truly engaged capital.
Why: Moonbase’s approach is designed to concentrate attention and improve support quality for searchers.
Create structured channels for advisor and LP involvement instead of assuming support will happen informally.
Why: Moonbase uses monthly calls and committees to turn willingness into actual help.
Protect searcher autonomy while offering optional help at each stage of the process.
Why: Moonbase believes entrepreneurs need access to support without being force-fed advice.
If you want to attract top searchers in a crowded market, make your value proposition explicit and concrete.
Why: Searchers can choose among investors, so investors must differentiate by usefulness rather than reputation alone.
The fund’s first 5 million was raised largely from people inside the team’s extended network, not from a fully cold process. Once Moonbase had a first close and two investments on the books, the next 5 million became much easier to raise.
Lesson: Fundraising credibility compounds quickly once investors can see deployed capital and operating proof.
The firm built an advisory pool of senior operators and alumni who volunteer time, sometimes invest smaller amounts, and can later move onto boards. Monthly searcher calls are used to identify a gap, match the right expert, and create a targeted support conversation.
Lesson: A structured advisory system can turn broad goodwill into concrete operating help for searchers.
Spain was described as ahead of other European markets because search has been active there longer and investor/ searcher density is higher. Italy, by contrast, was described as newer and less crowded.
Lesson: Search-fund ecosystems mature unevenly, and early success in one country can create a durable lead in deal flow and investor familiarity.