Rethinking Entrepreneurship

What does it mean to be an entrepreneur? Traditionally, the image of an entrepreneur is someone who starts a company from scratch, driven by an innovative idea and ardent ambition. However, a key component of entrepreneurship is seeing an opportunity and taking the risk to seize it. This has led to a broader definition that includes entrepreneurship through acquisition, also known as ETA.

INSEAD, one of the world’s leading business schools, supports the expanded view of entrepreneurship in its courses and student clubs. Among these student-led clubs is the INSEAD Search Fund & ETA Club, which supports students interested in this unique path. The club helps students start a search fund to support themselves while they find small businesses to acquire. 

Jard, a member of the club’s board, joined the INSEAD MBA program in France, knowing he wanted to pursue this path from the start.

“I went into INSEAD knowing that I was considering doing a search fund later,” he says. “I really tried to embrace everything that INSEAD had to offer on this topic.” (04:18)

The INSEAD Search Fund & ETA Club has been instrumental in providing Jard and other students with the resources, connections, and knowledge they need to succeed in their entrepreneurial journeys.

What Are Search Funds?

In essence, search funds support individuals while they look for a company to acquire and grow.

“One of the things you used to say – it’s for people that want to do entrepreneurship but are not creative enough to come up with a good idea,” Jard jokes. “So, you take an idea, and then you build it from there.” (01:34)

Search funds allow young professionals to raise a pool of money from investors, which is used to acquire a small company.

As Jard explains, “You buy a small company with the help of some investors, and you start operating the company as a CEO. From there onwards, you are trying to build the company, you are going to try to develop it, and after a few years, you will sell it again.” (00:42)

This model is appealing to those who are passionate about business operations and growth. Instead of facing the uncertainty and high failure rates of start-ups, search fund entrepreneurs face the challenge of transforming and scaling existing businesses.

The INSEAD Search Fund & ETA Club

The INSEAD Search Fund & ETA Club gives students a substantial boost on their ETA journey. It connects aspiring entrepreneurs with seasoned investors and industry professionals. The club provides members with invaluable networking opportunities and industry insights through various activities, such as conferences and site visits.

“This year, we were a very active club,” Jard says. “We organized a big conference where we had 250 people attending from as far as the US, Australia, and all over Europe, including investors, operators, searchers, and, of course, a lot of students.” (2:27)

The 5th Annual Student-led ETA Conference was organized with ETA MBA clubs at IESE and London Business School. It featured panel discussions providing diverse perspectives on the challenges of being a CEO and opportunities in the ETA space.

The club supplements students’ formal education and provides an early introduction to search funds and ETA. Of the numerous entrepreneurship electives students can take, “Realising Entrepreneurial Potential” best complements the club’s activities.

It covers the entire acquisition process, from finding and valuing a company to developing a business plan and seeking investment backing. Students work on projects that involve searching for suitable companies, analyzing opportunities, and presenting their plans to experienced private equity professionals, thus bridging academic learning with practical application.

Embracing the Entrepreneurial Journey

For Jard, the INSEAD Search Fund & ETA Club has played a pivotal role in preparing him to start his own search fund.

“What has been most valuable for me is the networking,” he says, “because there are so many INSEAD alums involved in investment and in search funds. Getting to know all these alums has been super helpful for me.” (04:35)

The relationships he has built through the club have provided him with crucial insights. The INSEAD alumni have been able to give him thoughtful advice. They helped him determine if a search fund was the right path for him and when the best time to pursue it might be.

INSEAD’s MBA is an intense one-year program. Balancing the rigorous coursework with engagement in student clubs can be challenging, but it is not impossible. 

As Jard clarifies, the first two periods are the most intense within the MBA program. However, in the second half of the year, you can take electives and have more time to participate in student clubs and extracurricular activities. (02:45)

It helps that Jard knew where he wanted to go before starting the MBA program. He recommends that others have similarly clear goals to make the most of their INSEAD experience.

“You should have an idea of what you want to get out of the year before you start, ” he suggests. (08:40)

As for those hoping to join the Search Fund & ETA Club at INSEAD, he also gives some final advice, “It’s helpful to read a bit about the topic beforehand…come prepared, join the events, and join the club.” (08:59)

For those interested in search funds, being proactive and engaged with the club can be the first step in their entrepreneurial journey. By joining the club, students can tap into a new network, gain advice and insights from alumni, meet potential investors, and start turning their entrepreneurial dreams into reality.

Check out our INSEAD page and read our previous INSEAD articles to discover more about the school.