Startup Funding Espresso -- How to Pay Advisors
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Once you\u2019ve found an advisor you want to bring on board, consider the compensation. It\u2019s important to pay the advisor something for their time and experience. Real work requires real pay. Not all advisors bring the same level of support to the startup. Also consider that equity increases in value as the company grows. Later-stage company equity is worth a great deal more than an early-stage company. With this in mind, consider the following: There are standard advisors who share their experience.\xa0\xa0\xa0 For early-stage companies consider 0.25% of equity vested over one year. For growth-stage companies consider 0.15% of equity vested over a year. Then there are premium advisors who not only share their experience but also make introductions to investors, customers, and partners. For early-stage companies, consider 1% of equity vested over one year. For growth-stage companies consider 0.5% of equity vested over a year. Set the compensation based on the stage of the company and the contribution of the advisor.\xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Music courtesy of .