advisor

Beginner 🚀 Startup / VC

Definition

Someone who receives equity for occasionally responding to emails and allowing you to use their name on your website. The advisor-to-impact ratio is the lowest in all of business, yet every startup has seven of them.

Example Usage

We granted our advisor 0.5% equity for quarterly coffee meetings where he repeats things we already read on TechCrunch and reminds us he knows someone at Google.

Origin

Adapted from traditional business consulting relationships

Fun Fact

The average startup advisor contributes fewer hours than a part-time barista but somehow commands more equity than early employees.

Source: Startup equity compensation and advisory board practices

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