Finders . . . 

are intermediaries who assist entrepreneurs in finding investors but who are not licensed as registered broker-dealers. While federal securities laws do not require all money finders to be registered, finders are generally more limited in the services they may perform for a company and restricted in how they may charge for their services. In fact, the manner in which an agent charges for his services or the extent to which an agent is involved in negotiations may cause an agent to be classified under current rulings as an unregistered broker instead of a finder. Such a classification can create difficulties in finding an applicable state securities law exemption for a funding.

In practice, however, many finders ignore the limitations and actively participate in negotiations and charge in the same manner as brokers. All of the considerations applicable to engaging a broker, which are described in the Brokers entry, apply equally to engaging a finder. See: Brokers, Finders Fees, Investment Bankers.