@Okiya et al
So I had been tasked with the task of fundraising for a locally owned manufacturing company that seeks an Equity investor of about USD 4.5M . I have zeroed in on two venture capital firms (XXXcapital and YYY capital) however they have structured the investment in such a way that the company is expected to pay an upfront advisory fee of USD 30,000 for XXX and 50,000 for YYY capital
[ul]
[li]Is this the normal way of doing business [/li][li]My fear is that if the company goes ahead and pays this advisory fee and then the deal does not materialize, this will dent my image[/li][li]Is it ethical to seek for a commision from the financiers without the knowledge of the local company[/li][/ul]
Saidia tafasali
Finders fee lazima
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Do a background check on the contacted companies for their integrity and service delivery (reputation) . the kickback should not be an issue for as long as they do not sabotage you in any way for example no bank transfer or cheques someone could be sent to deposit cash in your account however it all depends with the company’s structure. haukuja town kujionea watu
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What if you enter into a contract with the financiers before paying the advisory fee, that they will inject capital afterwards? Asking for a commission before deal isn’t bad so long the financiers are willing. Problem will be if the deal doesn’t go thro.
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Kwa nini ulipe finders fee na bado wakamue returns zako? Si ni afadhali shylock? VCs make money from its investors not the firms it is investing in.
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Thanks guys…:):):)
Haya… wacha nikafuate hiyo finders…
There’s a lot of due diligence work done by serious VC firms. Market research, what not… this surprisingly, COSTS MONEY.
Why would they do this without a guarantee that you’ll accept their terms.
I would advise you what to do, but I would also charge you.
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:eek::oops:
:mad::(…:D:D:D:D
in business nothing is for free advice included(i bet it is well informed advice based on actual research…).
2)it wont dent your image in any way it the norm of doing biz and once you find a company that does it for charity inform me. deal kuivana ama kutoivana will be influenced by many other factors beyond your or anyone’s control.
3)i think it is unethical iff they findout but for me it is the ends that justifies the mean.
if you canbe able to make the financier and the local company happy. then nothing to worry about
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Thanks,
Mwalim Andrew, Leo umeongea kama ripe replacement wa Matiangi!!
hapa hujanitusi?
kwa before naongeanga aje?
i know of a guy who can kamua x,y and the kalocol. then get finances for them from z.
hope you are hiding some ace up your sleeves?(read in greek)
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@4mankind is it you raising the money or a third party raising the money for you?
:D:D:D:D
unashekesha… What the hell would I be doing on K talk if I was the one the raising the money???
I am just trying to fix the company with an investor and make a shilling while at it
https://www.quora.com/What-kind-of-finders-fee-or-brokers-fee-does-a-startup-typically-pay-someone-who-helps-them-find-or-raise-capital
Because if there are no brokers companies don’t pay VC’s anything. If you are the broker then that is a different story.
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Thanks
Fanya research make sure the deal is some how clean
Kawambui, kweli wewe ni hustler!!.. umedinya point kabisaaa!
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worked with shifta who shafts this kind of things properly but bado nangoja @Okiya akoniclude hii maneno.
pia @GRACE msalame
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not this one but @msalame grace