Here are answers to some frequently asked questions about advisors. 1. What do advisors do? 2. Should I put together a board of advisors? 3. How do I get good advice? 4. How do I apply advice? 5. How do I find advisors? 6. How can I tell if an advisor is any good? Compensation ...
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The biggie, Founder Pay. First, I don’t believe in working for free. There is no such thing as working for free. If you tell me you are working for free at your start up, then your start up is worth nothing. You are working for equity in the firm and that equity has value. This ...
A while back, I asked for feedback from the community on potential topics of interest. One email had a host of questions around founders’ equity. I have been negligent in responding (I hope better late than never!). Great questions and ones that come up often.
Warning! I am not a lawyer, and I am not a tax accountant. The information in this document is correct, to the best of my belief, at this writing (2000). It’s distributed in the hopes that it will be useful, however, it shouldn’t be used as financial advice. You should see a professional tax or ...
Depending on the stage of development and the type of business, there are different ways of compensating your advisory board. So let’s get practical. First, a few assumptions: you are a startup and there have been relatively few stock transactions, but the stock should have value in the future, either through an IPO or merger. ...
The normal advisor gets 0.1%-0.25% of a company’s post-Series A stock. Normal advisors do something important for the company and aren’t expected to do much beyond that. For example, they introduce the company to a key customer or investor. The super advisor can get as much stock as a board member: 1%-2% of a company’s ...
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