It should also contain the financial compensation that the Finder receives, as well as a confirmation by the finder that it is aware of the laws of the broker-dealers. Raising capital is an important part of growing a business, but when using a discoverer, it`s essential to ensure that the company and finder comply with federal and state laws in order to avoid costly liability. This is the remuneration clause of a finder`s Agreement when it is underlined by LawGeex: 5. Miscellaneous. This Agreement is binding on all parties and their estates, heirs, successors and authorized beneficiaries of the assignment. This Agreement may only be amended by the written agreement of all parties. This Agreement may not be assigned by either party without the written consent of the other party. This agreement is the whole agreement between us. Early-stage financing is particularly difficult for entrepreneurs who do not have existing links to capital or who have a limited capital network.
Entrepreneurs can be forgiven for being tempted by allegations from individuals who promise to “open their Rolodex” and introduce potential investors for a success fee. As a general rule, these individuals are not licensed and are therefore not permitted, under federal or state securities laws, to earn any success fees related to raising capital. . . .