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Updated over 6 years ago on . Most recent reply

User Stats

73
Posts
42
Votes
Steve Cheslock
  • Specialist
  • Charleston SC
42
Votes |
73
Posts

How to compensate a partner that can raise money?

Steve Cheslock
  • Specialist
  • Charleston SC
Posted

I have a childhood friend doing very well in finance and said "when you figure our your model and do a few we'll talk.  I can raise you a few million if you ever want to start using private money".  

*I'm right outside NYC in a very high end town where the avg price of home on the market is $1.3mm, so $2-3mm isn't a gigantic sum.  I also feel I could raise that when the time comes, but if I can take that off the my plate to focus elsewhere that has value.  

So my question is how would you compensate my friend if he raises me $3mm (at terms I'm comfortable with)?  

Finders Fee?

% of money raise?

Small % of business or deal(s)?

Other suggestions?

I'm sure this is more "whatever you negotiate" rather than a standard rule of thumb so I'd like to hear what others have done in this situation or any creative thoughts. 

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