HACKER Q&A
📣 simonw

What makes a good equity-based startup advisor?


If you are a founder who has had a really useful advisor who you gave a small amount of equity to, what did they do that made them so good?

If you are an advisor who has inhabited this role, what do you think advisors should do to be as useful and effective as possible?


  👤 dbglog Accepted Answer ✓
The main thing is to be clear about the main goal of the relationship. Different kinds of founders often want/need different kinds of things:

* all founders -> potential investors, investor strategy

* most founders -> hiring advice, hiring network, exec eval

* b2b founders -> warm intros to potential buyers who trust the advisor, validation through association

* non-tech founders -> understanding and mental model of tech team dynamics

* first-time CEOs -> "how to CEO", coach-like role, potential BOD independent path

* seeking exit -> connection to strategic acquirers, indirect signaling

* solo founders -> talk through decisions/choices/what-ifs without impacting the organization

Sometimes this evolves over time, if the relationship lasts a while. The longer the relationship, the more areas it tends to cover. Often, the more experienced the founder, the more specific the initial expectation.

It might be difficult for founders to express their needs directly in transactional terms, especially if the advisor is perceived to be an influential person in their industry/milieu.

The second biggest thing is for there to be trust and respect in the relationship, in both directions. This is often harder than it sounds, especially for people who are being cold-introduced to each other. It often helps to go through an unpaid get-to-know-each-other period without legalities and commitments.