What’s the appropriate way to terminate an ‘Advisor’ relationship that isn’t adding value to your startup?

(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?

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What can Advisory Board /Board Members do for 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?

“For my startup, how much equity should I offer an Advisory Board Member”?

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”?

“For my startup, how should I get someone to join as 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”?

What happens to the shareholding of a Founding Team Member in case he/she decides to quit the company?

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?