FREE online courses on Venture Capital Funding - The Venture Capital Industry - Syndications

 

 

·         Often a Venture Capitalist may act as the leading investor, investing only a part of the money that you need. You may have to syndicate the rest.

 

·         The leading investor may go with you to other venture firms or may meet with a group of them to help sell your idea or may merely act as the first investor to commit funds.

 

·         Investment bankers are paid 5 to 10 per cent for putting together a syndication of venture capital firms to invest in a small business.

 

·         If the venture firm acts as a principal and a syndicate, the fee may be 2 to 3 per cent of the money raised through other venture firms.

 

·         Sometimes the principal venture firm may share part of the fee with the other venture firms that are investing.