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Platform Vision

Why Placement Fees Corrupt Everything

5 min readBy Matt Bertram
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When platforms charge 3-8% to connect investors with sponsors, their incentives shift from quality to volume. This fundamental misalignment creates a race to the bottom that hurts everyone involved.

The Problem

Traditional platforms need transaction volume to survive. On a $10M raise, a 6% placement fee is $600,000--money that should strengthen the deal, not enrich the middleman.

This creates perverse incentives:

  • Quality sponsors avoid platforms that dilute their economics
  • Platforms push deals to hit revenue targets
  • Investors get marketed to on mediocre opportunities
  • The ecosystem optimizes for fees, not outcomes

Our Solution

We eliminate placement fees entirely. This fundamental shift realigns incentives around quality, not volume.

"We'd rather facilitate fewer excellent deals than push volume to hit revenue targets. When your business model is built on future value creation, you need quality to thrive."

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Matt Bertram

Founder

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