Sliding Fee Scale

A Sliding Fee Scale is a fee structure where the fee rate changes based on size, time, performance, or other thresholds (e.g., management fees that step down after the investment period or placement fees that decline at higher raise amounts). In fund and deal economics, a Sliding Fee Scale is used to align cost with scale and incentivize larger commitments, and Sliding Fee Scale terms should be clearly defined to avoid disputes.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.