Advisory Board
Advisory Board is group of people selected by the startup for their experience, knowledge, and influence. The startup hopes that the advice, counsel, and connections of the advisory board members will benefit the growth and direction of the startup. Some advisors will join an advisory board rather than the more formal board of directors because the advisory board makes no “actual decisions” regarding the startup (and therefore an advisory board member has less potential liability).
Advisory Board members will typically get a grant of a quarter point or more of stock options in the startup.
About the Author
Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Click here to learn more about his practice.
