Lets hear some other experts weigh in on this great topic.
Adeo Ressi from the Founders Institute says, “When looking at Advisory board compensation, it ranges from nothing to small grants (usually less than 0.1% of the company.) Cash comp is not appropriate”.
Fred Wilson mentions, “In all cases you should be willing to cover reasonable expenses for board member and advisors to come to your meetings if they have to travel. They key word is reasonable – you get to define this. For example, I once sat on a board where the CEO insisted that she choose the hotel we stay at and book the reservation (fortunately she had frugal but good taste).
Brad Feld states “In general, I don’t value “advisory boards” very highly and as a result anyone who needs cash comp to be on an “advisory board” is probably not that qualified for it. People do this for either a little bit of stock or good karma to help an entrepreneur they like.”
Nivi from Venture Hacks and AngelList says, “Another data point: In my experience, Advisors who join early (pre-financing) and kick ass can get .5% or more of the post-money”.
Looking for a quick and easy Advisory Board agreement document? The Founders Institute has provided this resource.
Interested in learning more about Advisory Boards? Check out our newest Udemy course today.
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