As an example, the startup can offer: 1) 5% equity ownership. 2) Discount in the next round. What could be some other examples? The responsibility of the advisor is to help raise $100k.
Advisors and investors are two very different animals. An advisor typically gets an equity stake in exchange for providing ongoing guidance, introductions and actionable advice. This equity typically vests over time to keep the advisor engaged in helping the startup. An investor provides capital, and a *good* investor will provide capital plus everything an advisor can offer. Investors are more likely to view your company favorably if they see that you've lined up quality advisors to help your startup succeed. I advise a number of equity-backed startups and have made numerous investor intros. Happy to chat on a call.
Answered 9 years ago
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