Have an investor who wants to invest money, and in return wants a share of all our future deals. Is this standard practice? What percentage of the deal should we offer? Are there cap limits to how much we should offer? Anyone come across a situation like this before?
if the guy brings in those deals -- that would make sense
Is there any limit to the deals he wants a percentage on? To me it sounds a bit much. It might look very tempting now but a few years down the road it might even create an unbearable burden. One of the biggest dangers van be that it can easily turn a deal non profitable.
In my eyes you should put some cap on it. Like others stated it can be that he gets a portion of revenue originating from him you can go for a te cap e.g all sales generated in the next 5 yrs or so.
If you wish I will be glad do dive deeper over email.
If you've ever watched Shark Tank (US version), your investor is Mr. Wonderful.
Do the math and see what makes sense for your business to offer, if you're entertaining this investment model.
Answers to your questions,
1. Yes, it is a standard practice.
2. From your question title, I assume you are selling services. So, based on that judgement, I think you should be discussing with financier regarding the Area in which you are going to invest his fund. And what so ever growth you calculate in your overall progress, offer him the same number of percentage on the deals which you have got due to his investment, not all.
3. By following above strategy, you won't require to think about any limits.
All depend on your needs and strong of your business. 20% is fair even though can be also the time when you give that percentual figures for keeping the relations with new investors