Recently I was asked what is a typical finders fee for raising capital?
Good question, exclusive or not, it can depend on the quality of the deal.
We have agreements for a little as 3% and some as high as 10%. There are so many aspects of a deal that can make this affect the percentage, primarily based on the viability of the deal and how "early" stage they are.
Assuming all the necessary documents are in order...
If it is debt financing? " You normaly will be paid lower fee for Debt"
If it is Equity " Higher fees can be expected for equity projects"
Is it a private company?
Common or Preferred stock?
Product or service?
Size of industry?
First round, second?
So much to consider.
We usually will negotiate a Fee on average of 5% depending on the ammount of finanacing required. When your dealing with Project under 1 million the fees are normally over 5% deals over 1 million 5% and under depending on the answer to the questions above.
Hope this gives you a better understanding on how Finders Fees are determined.