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Ask HN: Advisors/Mentors asking for equity/compensation – is this a red flag?

• dooraven 3y ago
  Advisors asking for equity and compensation is standard. Give them one or the other but not both. Use the FAST agreement to guide you https://fi.co/fast https://fi.co/fast. Do not deviate from this agreement, no matter how good the advisors will be. They fundamentally are not building your business.
  • Kalpeshbhalekar 3y ago
    Thanks for the template! Looks full-proof. How much equity would be healthy to give?
    • ipaddr 3y ago
      See the chart above: .25 for any advisor upto 1.00 if true expert in the idea stage
      • Kalpeshbhalekar 3y ago
        Gotcha! Thank you :)
  • Shinmon 3y ago
    Mh I don't think it's quite as standard. YC advises against that, too. If you absolutely have to then use standard compensation. Having several advisors with small equity is a red flag for many investors.
    • dooraven 3y ago
      Yeah you generally only have 2 or 3. Wouldn’t recommend having more than that
• KomoD 3y ago
  Advisors - no
  • Kalpeshbhalekar 3y ago
    Any particular criteria?