If I wanted to introduce an angel investor with a CEO of a company that wants to do a PPM, do I need a brokers license? How much are the fees typically charged (does 8% of what is being invested seem right?)? What books/cases can I read so that I can structure the deal smoothly? thank you very much for your help.
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Answers to your questions:
A) don't need a b/d to do a private capital raise involving angels, particularly if they are accredited investors
B) 8% is very, very aggressive. 5% is more typical for this kind of representation
C) If you need to read a book/case to structure smoothly, then you and your clients would probably be better served by partnering with someone who has a track record doing placements and can effectively deal with structuring and term sheet negotiation. That being said, the book you would want is "Deal Terms - The Finer Points of Venture Capital Deal Structures, Valuations, Term Sheets, Stock Options and Getting VC Deals Done" by Alex Wilmerding
My advice: if you don't know how to do a placement, the more appropriate route to monetizing the introduction is negotiating a finders fee. Best of luck!
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