By the time a startup compensates an advisor with incentive equity, it is best practice for startups to also have a written agreement typically called an “Advisor Agreement” or “Advisor Letter” in place to protect the startup. The Advisor Agreement also has the side benefit of managing expectations on both sides.
One asset that startups should consider taking advantage of is advisors. Luckily for startups, advisors are prevalent and can be readily found through incubators, networking and/or personal contacts. The best advisors are in it to pay it forward or give back to the startup community. If you want to take
There are a ton of positives that mentors provide startups, as no one person innately has the skill set and/or experience to run a successful company. But if there is an incubator bubble, does that beget a mentor bubble? Mentors at incubators should be in it strictly to pay it
Advisors are great for startups. They can provide your startup with guidance on a wide range of topics and typically take a seat on your startup’s advisory board. But sometimes a person who gives your startup infrequent, casual advice will broadcast to the world that he or she is an
I get about 4 emails a week from law students and attorneys with questions about launching a law practice. It’s an awkward and humbling experience for me. I’m not a law practice management expert and several years ago I had many of these same questions. But I try to answer
Startups often desire to shield members of their board of directors from personal liability in connection with their duties on the board. And sometimes potential board members are hesitant to join a startup’s board without sufficient personal liability protection. Therefore, startups can protect their directors in a few ways: (1)
Startup founders sometimes ask their startup lawyer to serve on the board of directors. The founders may feel that their lawyer is a prime candidate for a board seat since their lawyer (a) is familiar with their startup, and (2) has dealt with a myriad of startup company issues through
“Get advisors” is a common recommendation given to a startup company entrepreneur. However, entrepreneurs should use caution when selecting advisors for his or her startup company. Your advisors may come pre-packaged with restrictive covenants that have the potential to kill your startup. One such restrictive covenant that could darken any
