A Better Way to Structure Advisory Agreements

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Yes, it’s a bit dramatic, but equity is important

Over the years, I’ve taken several advisory roles and I’ve brought advisors on to my company. In that time, I’ve seen scenarios where an advisor negotiates a fairly ridiculous advisory agreement out of an inexperienced founder. Sure, getting a founder to carve out 3% of their company to listen to you opine once in a while sounds like a great deal, but doing so creates a huge red flag on their cap table. It effectively guarantees that the company will look like amateurs when they raise — and investors will push back on this. …

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Blake Commagere

COO Vault12

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