Entrepreneurial Capital Review: By Searchers, For Searchers
What happens when former search fund operators become the investors? You get Entrepreneurial Capital — a firm that invests $300K–$2M in established, cash-flowing small businesses acquired by self-funded searchers. With a philosophy of being “by searchers, for searchers,” Entrepreneurial Capital brings firsthand operational experience to every deal they back.
In this review, we’ll break down their investment criteria, their unique Preferred Searcher Program, how they work within SBA deal structures, and whether they’re the right equity partner for your acquisition.
What Is Entrepreneurial Capital?
Entrepreneurial Capital is an equity investment firm focused on self-funded search acquisitions. They provide capital and entrepreneurial guidance to buyers acquiring profitable, stable small businesses. Their team consists of former searchers who understand the unique challenges and rewards of the acquisition entrepreneur journey.
You can find them on VerSquare’s provider platform and at entrepreneurialcapital.com.
Key Facts
- Investment Range: $300K–$2M per deal
- Target Businesses: Earnings of $750K+, under 5x multiple, history of profitability
- Philosophy: “By Searchers, for Searchers”
- Special Program: Preferred Searcher Program (free pre-LOI support)
- Approach: Patient, long-term capital focused on relationships
Entrepreneurial Capital’s Three Core Principles
By Searchers, For Searchers
The team at Entrepreneurial Capital has been through the search process themselves. They’ve experienced the highs of finding a great deal and the lows of deals falling apart at the last minute. This isn’t theoretical knowledge — it’s battle-tested experience that shapes how they work with new searchers.
Encouraging Partners
Their philosophy goes beyond funding: “We don’t just fund companies — we invest in people.” From day one, they position themselves as trusted allies, helping searchers lead with clarity and confidence. This mentorship-first approach is especially valuable for first-time operators who are stepping into a CEO role for the first time.
Long-Term Approach
Entrepreneurial Capital describes themselves as patient capital. They’re not focused solely on the current deal — they’re invested in the long-term relationship. This means less pressure for a quick exit and more room to build lasting value in the business.
What Entrepreneurial Capital Looks For
Their Ideal Investment
Entrepreneurial Capital summarizes their criteria simply: “A trustworthy searcher buying an enduring business.” More specifically, they look for:
- Under 5x Multiple: They want deals priced reasonably, not inflated by competitive bidding
- Earnings of $750K+: The business needs sufficient cash flow to service debt and support growth
- History of Profitability: Consistent earnings over multiple years, not a single good year
- Low Customer Concentration: No single customer representing a large percentage of revenue
- Low CapEx: Capital-light businesses that generate free cash flow
- Low Cyclicality: Businesses that perform consistently regardless of economic cycles
They describe it perfectly: “Profitable, stable, boring? Beautiful.” This is exactly the type of business that SBA lenders love to finance — which makes Entrepreneurial Capital a natural fit for SBA-backed deals.
The Preferred Searcher Program
One of Entrepreneurial Capital’s most distinctive offerings is their Preferred Searcher Program — a free support system for select searchers who haven’t yet signed an LOI. This is rare in the investor world, where most firms only engage after you have a deal in hand.
What the Program Includes
Community Engagement
- Access to a Preferred Searcher Slack Community
- Direct contact with the Entrepreneurial Capital team
- Connect with other searchers for advice and support
- CIM (Confidential Information Memorandum) review
- LOI review and feedback
Fundraising Assistance
- Investor support letters — useful for showing sellers and lenders that you have capital committed
- Proof of funds letters — critical for getting taken seriously by business brokers
Deal Support
- Access to off-market deals through their network
- Introductions to deal-team partners (attorneys, accountants, diligence firms)
- Prioritized consideration for investment when you find a deal
Post-Close Support
- Access to the investor pool for advisory and board participation
- Ongoing operational support after closing
This program alone makes Entrepreneurial Capital worth connecting with, even if you’re early in your search and don’t yet have a deal.
How Entrepreneurial Capital Fits Into SBA Deals
With investment sizes of $300K–$2M, Entrepreneurial Capital can serve as the equity injection for a wide range of SBA-financed acquisitions.
Example: $4M Business Acquisition
- SBA 7(a) Loan: $3.6M (90%)
- Seller Note: $200K (5%, on 24-month full standby)
- Entrepreneurial Capital Equity: $200K (5% equity injection)
- Buyer Out-of-Pocket: $0
Example: $10M Business Acquisition
- SBA 7(a) Loan: $5M (SBA max)
- Seller Note: $2.5M
- Entrepreneurial Capital Equity: $1.5M
- Conventional Loan: $1M (if needed)
- Buyer Out-of-Pocket: Minimal to $0
The flexibility of their $300K–$2M range means they can participate in deals from the smaller end of SBA eligibility to larger, more complex structures.
Learn more about zero-down structures: How to Buy a Business With Zero Down Using an SBA Loan.
Pros and Cons of Entrepreneurial Capital
Strengths
- Preferred Searcher Program: Free, structured support before you even have a deal — this is exceptional in the industry
- Operator Background: Their team’s firsthand search experience means genuine empathy and practical advice
- Flexible Investment Size: $300K–$2M covers a wide range of deal sizes
- Patient Capital: Long-term focus reduces pressure for premature exits
- Community Access: The Slack community connects you with other searchers, creating a peer network
- Proof of Funds Letters: Invaluable for getting taken seriously by brokers and sellers
- Off-Market Deals: Access to opportunities you wouldn’t find on your own
- Clear Criteria: Their investment parameters are transparent — you know quickly if there’s a fit
Considerations
- Earnings Floor: $750K+ earnings requirement excludes smaller businesses
- Under 5x Multiple: In competitive markets, some quality businesses trade above 5x — EC may pass on these
- Equity Dilution: A $300K–$2M investment means a significant ownership stake for the investor
- Self-Funded Search Focus: If you’re running a traditionally funded search fund, EC’s model may not align
Entrepreneurial Capital vs. Other Investor Groups
- vs. Shareholder Ventures: SHV invests $250K–$750K exclusively in SBA deals. EC’s range is broader ($300K–$2M) and their Preferred Searcher Program adds pre-deal value.
- vs. ETA Equity: ETA Equity brings massive deal volume experience. EC brings structured community support and patient capital philosophy.
- vs. Maven Equity Partners: Maven emphasizes customization. EC offers more structured programs (Slack community, proof of funds letters, off-market deals).
- vs. SMB Invest: Both operate in the self-funded search space. EC’s transparent criteria and Preferred Searcher Program provide more upfront clarity.
How to Connect With Entrepreneurial Capital
- Apply to the Preferred Searcher Program: Even if you don’t have a deal yet, this gets you into their ecosystem
- Check Their VerSquare Profile: Visit their VerSquare listing
- Prepare Your Searcher Profile: Background, thesis, target criteria, and timeline
- Get SBA Pre-Qualified: Having financing lined up demonstrates seriousness
- Join the Community: Engage in the Slack community and build relationships before you need capital
GoSBA Loans: Your SBA Financing Partner
While Entrepreneurial Capital handles the equity side, you need an expert on the debt side. GoSBA Loans specializes exclusively in SBA loans for business acquisitions:
- SBA-Only Expertise: Business acquisition SBA loans are our entire focus
- Lender Network: Dozens of SBA preferred lenders competing for your deal
- Capital Stack Design: We coordinate the SBA loan with equity investors like Entrepreneurial Capital and seller financing
- Pre-Qualification: Strengthen your position with investors by showing you’re SBA-ready
- Zero-Down Deals: We’ve helped many buyers close with zero out-of-pocket cost
Final Verdict: Is Entrepreneurial Capital Right for You?
Entrepreneurial Capital is one of the most searcher-friendly investor groups in the market. Their Preferred Searcher Program, patient capital philosophy, and operator-led team make them an outstanding partner — especially for self-funded searchers who are still early in their journey.
Best for:
- Self-funded searchers at any stage (pre-deal through close)
- Deals with $750K+ earnings at under 5x multiples
- Buyers who want community support and structured programs alongside capital
Less ideal for:
- Smaller businesses under $750K earnings
- Deals priced above 5x earnings multiples
- Traditional search fund structures
Take the First Step
Whether Entrepreneurial Capital is your equity partner or you’re exploring other options, the journey starts with the right SBA financing.
Contact GoSBA Loans today for a free consultation. We’ll help you structure the deal that makes business ownership a reality.
