Introduction
Startups love shortcuts.
Finders, agents, and strategic connectors promise exactly that: introductions to investors, customers, or business opportunities.
A good finder opens doors.
A bad finder’s agreement can quietly drain your company for years.
What Is a Finder’s Agreement (and Why It Matters)?
A finder’s agreement defines how and when someone gets paid for introducing you to a deal, investor, or opportunity.
Unlike employees or advisors, a finder:
- doesn’t build the product
- doesn’t manage the company
- doesn’t take operational risk
So their compensation should reflect that, clearly and carefully.
How to Structure a Smart Finder’s Agreement
1. Pay for Results — Not Promises
The golden rule:
No deal = No payment.
Finder fees should be tied to actual outcomes, not introductions alone.
The safest structure:
- Payment only after funds are received
- Success-based commission
- No upfront retainers unless there’s real added value
If you’re paying out of pocket while waiting months for a deal to close, the agreement is working against you.
2. Limit Scope and Duration
A finder is not a shareholder.
Your agreement should define:
- Which specific deals qualify
- Which investors or partners are included
- How long the finder is entitled to fees
Without time limits, founders end up paying commissions years later for introductions they barely remember.
3. Be Extremely Careful With Exclusivity
Exclusivity sounds convenient, until it isn’t.
If a single finder controls your entire pipeline, you risk:
- slower fundraising
- conflicts of interest
- missed opportunities
- dependency on one person
In most cases, non-exclusive agreements protect your flexibility and momentum.
Common Finder Agreement Mistakes Startups Make
- Paying before money is received
- Granting lifetime commissions
- Giving exclusivity without safeguards
- Not defining what qualifies as a “qualified deal”
Conclusion: A Finder Should Accelerate Your Growth - Not Drain It
Finder’s agreements are powerful tools when structured properly.
They reward real value and protect your flexibility.
When structured poorly, they quietly follow you into every future deal.
If you’re working with a finder, or thinking about it, make sure the agreement serves your company, not just the introduction.
Need help reviewing or drafting a finder’s agreement? Happy to take a look.
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