Compensating Fundraising Advisors Without Expanding Venture Partner Pool
We’re launching a VC fund in Central Europe and have a few advisors/connectors helping with fundraising. Some expect compensation, but we’d prefer not to bring them in as venture partners to keep that group small.
We’re considering a success-based fee (e.g. % of capital raised), but have a few questions:
- Is a finder’s fee (% of capital raised) common in VC fundraising?
- What are typical terms for this in Europe?
- Should this come from fund expenses, the management company, or handled otherwise?
Any advice, especially from a European perspective, would be much appreciated.