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When doing a private placement memorandum, what is the typical percentage that a broker or investment bank get


basically when your raising 1,000,000; what is the low end, average, and high end that a brokerage firm/investment bank get for there work? and what exactly do they do?

Typically we charge about 6% cash plus 2% warrants, but that is usually for larger amounts. For $1mm raise I would expect the fee to be higher and the amount of work the bank puts in to be less.

An investment bank will typically help draft the PPM and company presentation, contact potential investors, set up the meetings, help negotiate the terms and, in cooperation with your lawyers, close the transaction.

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