SMB Fund is a dedicated investment firm focused on enabling entrepreneurs to acquire flourishing small and medium-sized businesses (SMBs).
Founded by Tim Ericson, an experienced entrepreneur with a successful history of raising over $40M in venture capital, scaling a business across 35 states, and executing a strategic exit, SMB Fund was birthed from his personal journey. After exploring the Entrepreneurship through Acquisition (EtA) space, he realized a gap in the market. Large private equity firms, while providing capital for bigger acquisitions, overlooked the potential in the SMB space. Entrepreneurs wishing to acquire businesses often had to cobble together funding from multiple individual investors, a challenging and time-consuming task.
SMB Fund was created to bridge this gap, providing a platform that connects passionate acquisition entrepreneurs with seasoned investors interested in the SMB space.
Why focus on SMBs? Baby boomers are set to retire, leaving $30 trillion worth of business assets up for sale over the next 30 years. Interestingly, about 70% of these assets will not be inherited by their children, presenting a wealth of opportunities for acquisitions. Furthermore, SMBs usually have access to high leverage through SBA 7(a) acquisition loans, which come with a low default rate. These businesses are cash-flowing, often allowing equity investors to recoup their investments within two years. The cherry on top is the vast potential for a tech-savvy owner to implement modern business practices and technologies, offering a significant upside.
SMB Fund carefully evaluates acquisition entrepreneurs and target businesses based on specific criteria. Their investment amount varies, and they welcome potential investors interested in the SMB space to become a part of their investor base.
Since its inception, SMB Fund has made a name for itself as a key player in the SMB acquisition space, earning recognition for its unique focus, strategic acumen, and commitment to enabling entrepreneurial success.