[akula]

The trick for growing companies these days, in spite of record amounts being invested in private equity funds, is finding a venture capitalist that is actually willing to write a check. Lately, more and more early-stage companies are turning to outside sources, such as finders, to help them identify willing investors. (Very few of these service providers refer to themselves as finders -- ”they commonly style themselves as consultants, financial advisors, or specialized investment bankers.) The characteristic that these finders, consultants, financial advisors, or specialized investment bankers all share is their preferred method of being compensated: in return for their services, finders receive a fee that usually consists of a percentage of the money found. Many companies do not realize, however, that their use of finders may, under some circumstances, have adverse consequences for them, and, as a recent Massachusetts decision illustrates, finders may find themselves without an enforceable legal claim to be paid for their services.

http://www.cartermorse.com/articles/...orventure.html

[DXTINC]

"Finders," though having a bad reputation do serve thier purpose and they serve it well. I'm sure most are aware of the difficulty in attracting VC money. It is highly unlikely that a company will attract the vulture capitalists and if they do the price they pay is steep.

Letting go of 30-40 percent off the top to a finder is often the only viable option a company has to raise needed capital.