How To Become A StartUp Advisor

 Diane Gordon, (Founder at Customer Growth Consulting, fmr CCO Yotta), Edward Chiu, (CEO and Founder of Catalyst, merged with Totango) and Debra Squyers, (CCO Bonusly) left to right

Startups face several challenges when building their business. Advisors can make a huge impact in helping them win new customers and build better products. Advising is a great opportunity for expert operators to gain equity without investing or working full-time at an early-stage company. We had the privilege of gaining insights from three distinguished panelists- Edward Chiu, (CEO and Founder of Catalyst, merged with Totango) and advisors Debra Squyers, (CCO Bonusly) and Diane Gordon, (Founder at Customer Growth Consulting, fmr CCO Yotta). Scroll down to catch the full episode on YouTube.

Let's delve into the invaluable insights shared for those aspiring to make a meaningful impact in the advisory space.

Crafting Your Advisory Journey

• Targeted Expertise

Debra advises aspiring advisors to focus their expertise. Hone in on specific areas rather than casting a wide net to maximize impact.

• The Art of Pitching

Edward emphasizes the need for a clear mission, a compelling value proposition, and mastering the art of pitching for effective advisory engagement.

• Building Your Brand

Diane stresses the importance of building a strong personal brand by sharing unique ideas and adopting a proactive approach.

What Founders Seek in Advisors

• Proactive Engagement

Founders value proactive advisors who initiate valuable connections and demonstrate a proactive commitment to the company's growth.

• Well-Connected and Specialized

Advisors must be well-connected and possess specific, relevant skill sets to be valuable to founders.

Making a Positive Impact: The Advisor's Role

• Extension of Team

Debra sees advisors as an extension of the team, emphasizing mission alignment and leveraging unique networks for positive impacts.

• Passionate Commitment

Edward highlights the need for passionate commitment and domain expertise, avoiding a generalist approach in advisory roles.

• Transparency and Trust

Transparency, responsiveness, and a well-defined focus are foundational for building trust in advisory relationships.

Equity and Negotiation in Advisor Agreements

• Pre-Set Equity

Equity amounts are often pre-set, with limited negotiation room, typically ranging from 0.2 to 1%.

• Earning Your Stripes

Demonstrating value and aligning with the company's values can influence equity negotiations.

• Negotiation Opportunities

While early-stage advisors may have limited room for negotiation, those in high demand might find opportunities to negotiate based on their exceptional skills and unique contributions.

The Right Number of Companies to Advise

• Quality Over Quantity

Advisors should prioritize quality over quantity, considering personal capacity and the depth of contribution to each company.

• Belief in the Company

Advising only companies one believes in ensures genuine commitment and a more impactful advisory relationship.

Time Commitment in Advisor Agreements

• Frequency and Compatibility

Initial interactions may require a minimum of four meetings a month, but great relationships go beyond set meeting times, focusing on compatibility.

• Clarity on Expectations

Aligning with the team and product, clarifying expectations, and establishing agreements around NDA and equity components are crucial.

• Negotiation Opportunities

Edward provides insights into negotiation opportunities within advisor agreements. Advisors can negotiate milestones, top-ups, and refreshers based on their contributions, creating a win-win scenario for both advisors and companies.

Conclusion

Embarking on an advisory journey requires strategic planning, a commitment to transparency, and a passion for the companies you advise. By adopting a targeted expertise approach, being proactive, and focusing on quality, aspiring advisors can unlock success and become valuable contributors to the growth of the companies they guide.

Check out the full session on YouTube and remember to pay it forward by sharing with anyone in your network who might find this helpful.

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