Pitch Fees - Is anyone paying any of these fees?

professional profile

March 11, 2024

by a professional from Embry-Riddle Aeronautical University in Orlando, FL, USA

Are any Searchfunders paying "Pitch Fees" to pitch their offerings to organizations to raise capital?

I understand some organizations debate whether we should charge pitch fees to organizations seeking capital or strategic relationships.

The first argument - a pitch fee of $###-###-#### would indicate if the company seeking capital is serious. The capital organization would have all decision-makers in the 1st pitch event.

The second argument - many capital organizations offer to listen to pitches for free. Often the pitch has to be made 2-3 times - ultimately making the way to the decision maker. (this takes more time)


Please Chime in.

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Reply by a searcher
from The University of Chicago in Chicago, IL, USA
From the traditional side, I don't believe the market dynamics support investors charging searchers for time. I'm not familiar with any PE/search investment firms that charge to review deals (but plenty that hire dedicated sourcing staff).
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