| As we have discussed earlier, and as has been the | | | | fees. However, these fees can be highly negotiable. |
| theme of this website, looking for venture capital is a | | | | If you work with a venture capital introduction firm |
| very difficult and costly process that often requires | | | | then it may be possible for you to trade some of |
| the assistance of professionals. We recently | | | | the cash fees associated with their work for a |
| discussed the concept of the capital introduction firm | | | | percentage of your business. However, the |
| in a previous article. In this discussion, we are going | | | | percentage of the business that they are seeking |
| to expand on that concept. A private placement | | | | may be more than expected. Depending on the |
| broker or capital introduction firm specializes in | | | | potential for your company, it may be in your best |
| working with venture capitalists in order to get your | | | | interest to pay the fees owed from capital raising |
| business funded. In many instances, a reputable and | | | | services directly rather than providing a capital |
| high end private placement broker will take on your | | | | introduction firm with a percentage of your business. |
| case at no cost to you – except if they are | | | | |
| successful in raising capital. Typically, and as said | | | | Prior to engaging a venture capital introduction firm or |
| earlier, private placement brokers and capital | | | | private placement brokerage you should make sure |
| introduction firms take a percentage rate of their | | | | that they are properly licensed by the Securities and |
| successful capital raising efforts. | | | | Exchange Commission. All firms that engage in this |
| | | | | type of activity need to be registered with the SEC |
| Many firms work on a "best-efforts" basis which | | | | and in many instances they must be licensed with the |
| means that even if they only raise a part of the | | | | state's securities regulation bureau. |
| capital you are seeking then they will be owed the | | | | |