Ask HN: Advisors/Mentors asking for equity/compensation – is this a red flag?

[Kalpeshbhalekar]

[dooraven]

Advisors asking for equity and compensation is standard. Give them one or the other but not both.

Use the FAST agreement to guide you https://fi.co/fast. Do not deviate from this agreement, no matter how good the advisors will be.

They fundamentally are not building your business.

[Shinmon → dooraven]

Mh I don't think it's quite as standard. YC advises against that, too.

If you absolutely have to then use standard compensation. Having several advisors with small equity is a red flag for many investors.

[dooraven → Shinmon]

Yeah you generally only have 2 or 3. Wouldn’t recommend having more than that

[Kalpeshbhalekar → dooraven]

Thanks for the template! Looks full-proof.

How much equity would be healthy to give?

[ipaddr → Kalpeshbhalekar]

See the chart above: .25 for any advisor upto 1.00 if true expert in the idea stage

[Kalpeshbhalekar → ipaddr]

Gotcha!

Thank you :)

[KomoD]

Advisors - no

[Kalpeshbhalekar → KomoD]

Any particular criteria?