Hawaii Venture Capital Finder's Fee Agreement

• Category: Contracts - Venture Capital
• State: Multi-State
• Control #: US-02370BG
• Format: Word; PDF; Rich Text

Description

Venture capital is money used to support new or unusual commercial undertakings; equity, risk or speculative capital. This funding is provided to new or existing firms that exhibit above-average growth rates, a significant potential for market expansion and the need for additional financing for business maintenance or expansion. Companies who seek venture capital are willing to exchange equity in the company in return for money to grow or expand the business. Those who provide venture capital generally seek a greater degree of control in the company affairs and quicker return on their investment than standard investors. The Hawaii Venture Capital Finder's Fee Agreement is a legal document that outlines the terms and conditions under which a finder's fee will be paid to an individual or firm for connecting entrepreneurs and start-up companies with potential venture capital investors in Hawaii. This agreement is crucial in facilitating the growth of Hawaii's entrepreneurial ecosystem by incentivizing individuals and organizations to identify and refer high-potential investment opportunities to venture capitalists. Key terms that may be present in the Hawaii Venture Capital Finder's Fee Agreement include: 1. Compensation: The agreement specifies the details of the compensation to be paid to the finder for their services in identifying and introducing the entrepreneurs or start-up companies to the venture capitalists. The compensation may be in the form of a percentage of the investment made or a fixed amount. 2. Exclusivity: This clause may outline if the finder has an exclusive right to introduce potential investment opportunities to a particular venture capitalist. It highlights the exclusivity of the agreement and ensures that the finder is the sole and primary source for connecting entrepreneurs with that specific investor. 3. Confidentiality: To protect the sensitive information about the entrepreneurs, start-up companies, valuation, or any other confidential details shared during the process, a confidentiality clause is often included. This provision prohibits the finder from disclosing any proprietary information to third parties without prior consent. 4. Termination: The agreement might detail the circumstances under which the contract can be terminated, either by mutual agreement or due to violations of the terms and conditions set forth in the agreement. It also specifies the notice period required for termination. 5. Representations and Warranties: This section establishes the assurances made by both parties regarding their authority, eligibility, and ability to enter into the agreement. It ensures that the finder has the necessary license, expertise, and resources to perform their duties, while the venture capitalist warrants their ability and willingness to invest in potential opportunities. Types of Hawaii Venture Capital Finder's Fee Agreements may include: a. Individual Finder's Fee Agreement: In this type of agreement, an individual acts as a finder, independently sourcing and referring investment opportunities to venture capitalists for a fee. b. Firm-Client Finder's Fee Agreement: This agreement is made between a finder firm and its client, typically a start-up, where the firm is engaged to identify potential venture capital investors for the client and negotiate the terms of an investment. c. Exclusive Finder's Fee Agreement: This specific type of agreement grants exclusivity to the finder, allowing them to connect one venture capitalist with multiple entrepreneurs or start-up companies in Hawaii. The exclusivity ensures that the finder has the sole right to introduce investment opportunities to that particular venture capitalist.

The Hawaii Venture Capital Finder's Fee Agreement is a legal document that outlines the terms and conditions under which a finder's fee will be paid to an individual or firm for connecting entrepreneurs and start-up companies with potential venture capital investors in Hawaii. This agreement is crucial in facilitating the growth of Hawaii's entrepreneurial ecosystem by incentivizing individuals and organizations to identify and refer high-potential investment opportunities to venture capitalists. Key terms that may be present in the Hawaii Venture Capital Finder's Fee Agreement include: 1. Compensation: The agreement specifies the details of the compensation to be paid to the finder for their services in identifying and introducing the entrepreneurs or start-up companies to the venture capitalists. The compensation may be in the form of a percentage of the investment made or a fixed amount. 2. Exclusivity: This clause may outline if the finder has an exclusive right to introduce potential investment opportunities to a particular venture capitalist. It highlights the exclusivity of the agreement and ensures that the finder is the sole and primary source for connecting entrepreneurs with that specific investor. 3. Confidentiality: To protect the sensitive information about the entrepreneurs, start-up companies, valuation, or any other confidential details shared during the process, a confidentiality clause is often included. This provision prohibits the finder from disclosing any proprietary information to third parties without prior consent. 4. Termination: The agreement might detail the circumstances under which the contract can be terminated, either by mutual agreement or due to violations of the terms and conditions set forth in the agreement. It also specifies the notice period required for termination. 5. Representations and Warranties: This section establishes the assurances made by both parties regarding their authority, eligibility, and ability to enter into the agreement. It ensures that the finder has the necessary license, expertise, and resources to perform their duties, while the venture capitalist warrants their ability and willingness to invest in potential opportunities. Types of Hawaii Venture Capital Finder's Fee Agreements may include: a. Individual Finder's Fee Agreement: In this type of agreement, an individual acts as a finder, independently sourcing and referring investment opportunities to venture capitalists for a fee. b. Firm-Client Finder's Fee Agreement: This agreement is made between a finder firm and its client, typically a start-up, where the firm is engaged to identify potential venture capital investors for the client and negotiate the terms of an investment. c. Exclusive Finder's Fee Agreement: This specific type of agreement grants exclusivity to the finder, allowing them to connect one venture capitalist with multiple entrepreneurs or start-up companies in Hawaii. The exclusivity ensures that the finder has the sole right to introduce investment opportunities to that particular venture capitalist.