At some point, you may be tempted to hire a professional “finder.” Technically, a finder is someone who purports to be an expert at helping entrepreneurs find money (or rather the sources that will invest the money). Finders have a mixed reputation in the industry because they’re substantially unregulated and have a history of overpromising and underdelivering.
So what exactly do finder’s offer? What do they charge? And how can you tell a good one from a bad one? The answers are not all that clear. First, the value proposition is quite simple–they’ll help you find money. If your cash is running low, this can be a most tempting offer, especially if you’re desperate. And herein lies the first caution: Be wary of seeking a finder when you’re desperate. You’ll most likely make the wrong decision and pay dearly for it.