Risk: High

Starting a search fund from scratch can be highly risky, especially for someone who can't afford to lose money. There is a significant potential to lose both time and money in this venture, as success is not guaranteed and deals may not materialize. Beginners often spend money on due diligence, legal fees, and other expenses without securing a profitable acquisition. Startup costs can be substantial and may not pay off if a suitable acquisition is not found within a reasonable timeframe. Online discussions highlight cases of failed search fund efforts leading to financial losses for entrepreneurs.