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This is exactly right. If you agreed to give him more than 2 or 3 % equity as an advisor, you have possibly killed your startup before it has a chance to take o
by petervandijck 3y ago
This is exactly right. If you agreed to give him more than 2 or 3 % equity as an advisor, you have possibly killed your startup before it has a chance to take off. Advisors should honestly get no equity ever.
Talk to him again and talk this through. If you can have that conversation, which is hard, and adjust his equity to a reasonable amount, then your likely good of success goes up dramatically, partially because you fixed a real problem, but more importantly because you were able to do something hard.
At the minimum, their equity is under a vesting plan?
- petervandijck 3y agoBTW, as a rule, advisors get no equity. If they believe in this company and want to help it succeed, they can invest in it with a safe, which gets them equity rights and a strong incentive to help you succeed.
- adastra22 3y agoWhere are you getting this “no equity ever” rule? Giving equity to strategic advisors is very much a standard thing, usually with a two year vesting reschedule. I’ve seen it at every startup I’ve been at. Because, as you note, equity gives strong incentive to help you succeed.
- petervandijck 3y agoI don't think it's standard at all. Hand out equity for cash, not for "advice". Advice is not work, and it's not cash. They take zero risk, they get no equity.