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Why Finders Are Losers

The Startup Lawyer

Whenever a startup considers paying a “finder&# for successful investor introductions, I have the same type of conversation with the founders that goes something like this: – Startup : “Finder&# knows a lot of investors and he’ll introduce us if we pay him [6]% of all capital raised through the introductions.

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Attorney and Startup Business Advisor – Aaron Shechet

SoCal CTO

You and I were talking about a startup recently and where they might go for seed stage funding, what is your impression on that aspect here in Los Angeles? We are not “finders” and usually serve the role of advisor and attorney. A few years ago “venture capital” was a revenue model. Are you doing much of that?