On the other hand, introduction services provide the contact details of only bona fide investors to VC seekers. Such persons can be accountants, lawyers, management consultants and financial advisers. Brokers can be a valuable contributor to your search for venture capital. Good brokers have contacts and experience in the local venture capital industry and knowledge of specific requirements by different venture capital sources. Some venture capital sources rely on brokers to bring in well prepared investment proposals.
Most brokers charge a success fee.
Some brokers do charge an upfront fee. You need to do a bit of research of the track record of the broker from relevant regulatory authorities. Once you are convinced that the broker will add value, a small upfront fee is worthwhile. Nevertheless, you should become suspicious if any broker asks for more than the costs of providing the service.