Cap Intro, compensation ?

Water Cooler Careers
#1

Hi, in regards to capital introduction how is compensation generally structured for connecting company management to investors? The company is very early stage, tech hardware space, prototype has been built and tested, but $$ is needed to achive initial production run.

For example, if you assist in raising $1MM what would be a reasonable commission to expect, 5-10%? Also, if you’re are not able to do all the leg work in making the pitch what would be fair split, or lesser amount? Thanks for any informaiton you can provide.

John

#2

An investment banker pursuing an equity offering would get about a 7% rip of the face amount (HOLY OVER COMPENSATION, BATMAN!) so I assume cap intro is probably in a similar range but I don’t know with certainty.

#3

raising 1MM is not going to be an equity offering. at that stage, it’s most likely a VC private investment