The average IPO proceeds for the past two decades have never exceeded 100 million and have been hovering around 70 for a while. At 3% that means the typical cut

The average IPO proceeds for the past two decades have never exceeded 100 million and have been hovering around 70 for a while. At 3% that means the typical cut is $2.1 million or less. Facebook plans to raise $11.8 billion, which at 1% would be $118 million. Compensation of fifty times normal implied by the 1% figure thrown out in the article still seems pretty high.