Should You Use a Finder to Obtain Venture Capital?
For early-stage entrepreneurs looking to obtain venture capital, an important decision to make is whether to use a finder. A finder (aka broker) is someone who offers to help an entrepreneur secure venture capital in exchange for compensation (cash and/or equity). Most finders typically charge an up-front fee and a percentage of the amount of money they "help" the entrepreneur raise and/or equity in the company. Before you decide whether to use a finder to obtain venture capital, consider the following:
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