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What is a common percentage to pay for referals for fundraising.

If a venture partner makes an intro that results in an LP signing. Can I compensate them with a cash consulting fee? Is there an industry standard rate, that relates to the size of the LP commitment?

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Top answer:

0. There are various broker dealer laws that make compensation for money raised illegal, unless the person has the proper broker licenses. Please note that these type of arrangements often don't work and are usually a major waste of time.

 -  Mike Suprovici
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Venture Partner Carry percentage

A potential Venture Partner, tells me they can help me raise 30% of my target.  I know I cannot give them cash or an earning proportional to the amount they raised. Is a percentage of carry the only compensation option? How much would be a reasonable percentage of the carry for leads to raise 30% of the total fund? Thanks

Top answer:

Venture Partner claims and reality often do not match up to reality. As a result, most Venture Partners are terminated by Managing Partners. So, use the Venture Share agreement and place a six month cliff on the Carried Interest venting....