Advisor Equity Grant Decisions Made Easy
Introducing The Kulpulator: the world’s best advisor compensation calculator
Our goal at Bad Ass Advisors is to help you find the best advisor for your company as quickly, and cheaply (can you say free), as possible. We help you sift through the ‘legal mumbo jumbo’ and avoid the sometimes uncomfortable negotiation. With this out of the way you can focus on the task at hand — building a bad ass company with the smartest people on the planet to help you along the way. Here are some of our previous Medium posts.
We conferred with leading venture capitalists, angel investors, experienced attorneys and then vetted the structure and signed on over 500 advisors and dozens of multi-time CEOs over 2015. We then built tools to automate and standardize the process, and have removed the ‘voodoo economics’ and debate over what is or what isn’t a fair deal for the company or the advisor.
Bad Ass Advisors’ Four Steps to Finding and Onboarding a Great Advisor
1. First, do you need an advisor or do you have a great one in mind? We’ve got a private curated network of over 500 advisors if you don’t have someone specific.
2. With you advisor in mind, use the Bad Ass Advisory Framework to help structure the relationship.
- Clear expectations. Both parties clearly specify what the goals, activities, and time commitments of the relationship are. We call this ‘cadence’. Sounds like a no-brainer, but you’d be surprised how infrequently this happens.
- 30-day “dating” period. If the relationship doesn’t work, no compensation is due and the agreement expires.
- 2-year working term. 4-year vesting is great for employees and directors, but the advisor’s expertise has a shorter half-life. After the initial 2 years, the advisor remains loosely available to the company but with a dramatically reduced time commitment.
- Stock vests monthly, as it is earned. Advisors get the company’s stock option agreement and paper.
Then you answer five multiple choice questions in the new Kulpulator by Bad Ass Advisors calculator to get a recommended equity grant. The Kulpulator is a compensation calculator that suggests specific equity grants. It is named after our co-collaborator (and one of our Bad Ass Advisors) Ryan Kulp, who built a series of very impressive employee equity calculators in 2015 that got a lot of attention on ProductHunt. Share the Kulpulator results with your chosen advisor, let him or her enter their own inputs, insure this process is fully transparent.
3. Then, use our pre-formatted Bad Ass Legal template. This is a simple, standard advisor agreement that we think addresses some of the most common issues that we’ve seen in advising engagements. When you’re ready to formalize your advising relationship, just access your pre-formatted template in Google Docs, and fill in a few blanks and sign.
4. If the relationship is looking good after the 30-day “dating period”, the clock starts ticking and the advisor begins to earn their equity.
and boom…you’ve got a bad ass advisor — now get back to building your company.