Unit

Definition

One equal share of a search fund raise, priced so investors can take several.

Why It Matters

It is how a traditional raise is denominated and how the cap table stays legible: a fund raising in units of $25,000 can say what a backer is in for in one number, and the step-up on conversion applies evenly. It also sets the floor on who can participate, which quietly decides how many conversations a searcher needs.

In numbers: A $450,000 raise sold in $25,000 units needs eighteen units; a backer taking two is in for $50,000 and roughly eleven per cent of the search capital.