Success fee for projects which receive investor funding
PFAN provides business coaching / project development support services free of charge for eligible projects that are selected for PFAN support.
PFAN encourages consultants to sign success fee agreements with businesses and projects that they work with under the PFAN program, as a way to both (i) contribute to a more sustainable local financial ecosystem in the long run, decreasing financial dependency on public resources administered by programs like PFAN; and (ii) ensure alignment of interests between consultant and business/project following the business coaching phase as they enter the investment facilitation phase.
PFAN will make it mandatory for consultants and businesses/projects to have a success fee agreement in place before such business/project receives investment facilitation services.
PFAN provides success fee templates with a fee sharing mechanism whereby the assigned consultant receives 80% and PFAN recovers 20% of the resulting success fee so that PFAN can (i) support a greater number of projects with free business coaching and (ii) enhance its investor outreach activities for the benefit of the supported projects.