(This was my response to a question on Quora.).The person had provided this additional information: We do 24 month vests and are about a year in with someone who just isn’t adding much value. We don’t want to burn the bridge but feel it necessary to unwind the relationship. My response Different people will have different … Continue reading What’s the appropriate way to terminate an ‘Advisor’ relationship that isn’t adding value to your startup?
Apart from guiding you on areas in which they have a competence and experience in, advisory board members can assist startup in the following ways: Make introductions to the relevant folks in your industry - E.g. vendors, customers, media, and other stake holders. One way to leverage your advisory board members connections is to request them to … Continue reading What can Advisory Board /Board Members do for your startup?
Well, there is no standard on this one. But often the number ranges between 0.25% to 1% (or even higher), usually depending on the level of involvement, the value that the person brings to the startup, etc. It can even be higher in case the person more actively involved. (Avoid giving equity for ‘access’ i.e. … Continue reading “For my startup, how much equity should I offer an Advisory Board Member”?
An advisory board member can be someone who provides the deep domain expertise or function experience to a startup, and fill in the competency gap that the founding team currently lacks. Before creating an advisory board, the founders should make a list of the skill-sets that would be required for building a company around your … Continue reading “For my startup, how should I get someone to join as an advisory board member”?
Creating a strong advisory board is one practical way of filling in the competencies gap that a startup may have. Most startups are resource-starved and hence not in a position to employ people for the various skill sets required for building the business. This often means that the entrepreneurs end up doing the thinking on … Continue reading Importance of an Advisory Board in a startup…
One of the common reasons for issues in startups is disagreement on the way forward. These issues and disagreements come up typically at two inflection points – 1) Either when the startup is doing very badly and tough decisions are to be taken e.g. to further reduce the already low salary or 2) When the … Continue reading Handling disagreements between startup Founders…
Ideally, the founder’s shares should vest over a 3-4 year period. This is not just in the interest of the investors, but also protects the entrepreneurs in case one of them decides to leave. In simple terms, if there is a 3-year vesting period, then every month the promoters get 1/36 part of their equity. … Continue reading What happens to the shareholding of a Founding Team Member in case he/she decides to quit the company?