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Ask HN: What compensation should a Series-A company give to an advisor

4 points by michaeldunworth 9 years ago · 5 comments


michaeldunworthOP 9 years ago

I know this is very much a "How long is a piece of string question" - But typically are there any stories that you guys could share, or any insight.

Here's an example

//

1. Invest for 0.5-1% of equity in current round.

2. Status as ‘Senior Advisor’ to the Board.

3. 1-2 days per month on senior sales/advice/strategy/compliance etc…

4. $100k per annum in fee or equity options (latter preferred).

//

I know that it's tough to answer, but any insight is really appreciated.

Thank you!

  • smb06 9 years ago

    Depends on how much you think the advisor might be able to help you. Guidance is nice and always appreciated but at the Series A stage you are probably pre-product market fit and you are looking for your first few marquee customers.

    Choose your advisors wisely and they could open many doors for you. If so, equity given to them is well worth it.

  • endswapper 9 years ago

    To me the only thing that matters is number 4. The first three are a direct quid pro quo.

    Why not tie #4 to performance?

    If you do tie it to performance, why limit it? Why not tier it out? If someone hits a hot-pocket, ride the wave.

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