SEC regulates that only licensed brokers can receive a commission capital raised through Private Placement Memorandum under REG D offerings with accredited investors. What about money raised from venture capital and private equity funds negotiated through a term sheet and not a PPM? The person is representing the company as their financial representative to help find the investors and help negotiate the terms. Can this only be done for an hourly rate, services fee, or can a commission on the investment amount be charged?
Disregarding whether or not PE Funds or VC funds like to pay commissions, is it legal for the entrepreneur to pay the commission?