95% of > 300k is worth infinitely more than 100% of nothing.
I agree, but I don't want to give up 5% for something I could potentially do myself.
Is 5% a reasonable cut for a middle-man when selling shares privately?
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Re: Is 5% a reasonable cut for a middle-man when selling shares privately?
#125% sounds ok. If they reached out to you . Then maybe you can negotiate it down some. There are private equity markets. You might be able to talk to a broker at a company that handles private equity (JPM?) and explain what you want to do. I would think their cut would be lower than 5%, but I have no idea.
Thank you for the suggestion.
Re: Is 5% a reasonable cut for a middle-man when selling shares privately?
#13It depends on the company, if it’s a Databricks or highly coveted unicorn, then 1% is more than enough. It ids a struggling startup or no-name, then 5% might be fair
The company was recently valued at over $6 billion.
Re: Is 5% a reasonable cut for a middle-man when selling shares privately?
#145% is common for private stock market place like forge global. Often they charge the buyer 5% too.
Interesting, thank you.
Re: Is 5% a reasonable cut for a middle-man when selling shares privately?
#15I had shares pre-ipo worth $300k, then we ipoed and our stock price tanked while in lockup. Ended up selling at 30kish. If I could have taken liquidity pre-ipo I would have.
Re: Is 5% a reasonable cut for a middle-man when selling shares privately?
#16Just to add another perspecitve here - you might find out that middleman that you can easily access might find 5% of the deal not worth their effort.
The logic here is that prospective providers you will find are already busy with larger deals, as they are easy to find by all other market players.
(This is under the assumption that you don't have relationships with such middleman and would need to look for them)