Edition 17: Build strong advisory board; Fractional recruitment; 2023 compensation stats;
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READS
Remuneration report for for VC-backed technology businesses, 2023 (Zeren)
While there has been a lot of focus on employers gaining an upper hand in compensation negotiations, it is important to note that this doesn't apply universally to all sectors, regions, or job functions. The updated Remuneration Report aims to provide clear answers to the common question we receive: "What should we pay for this role?"
Get compensation sinights for Sales, Csutomer Success, Marketing, Partnerships / Chanels, Product, Tech, Data, HR and Finance roles.
Pich Deck Teardown (TechCrunch)
I often argue that startups spend way too much time on their product slides, so I was impressed with Lupiya’s execution on this front. It shies away from the desire to include pages upon pages of details about its product, instead summarizing the whole thing with three screenshots and three bullet points. In the vast majority of cases, that’s enough for the first pitch; you can always demo the product in a later meeting. Very well done.
OPINION: How to Build a Strong Advisory Board
The term "advisory board" can be somewhat misleading, as advisors typically do not convene as a collective group on a regular basis and do not bear the legal and fiduciary obligations that a conventional board of directors does.
Advisors:
Usually engage in one-on-one consultations with founders on an ad-hoc basis
Enter into agreements with startups that outline their specific roles and responsibilities
Typically receive compensation in the form of equity
Only bring advisors on board to tackle distinct and well-defined challenges. for startups in sectors that require deep subject-matter expertise, the right advisor can be invaluable.
How to find advisors?
To find advisors, start with your network. Sometimes your mentors can morph into formal advisors if they have proven particularly valuable, and you have formed a trusted relationship with them.
Beyond personal networks, use every meeting with a potential angel investor as an opportunity to secure possible advisor referrals. They know how is best and will be most helpful.
Startup advisory agreement
You need a detailed agreement that includes a carefully crafted equity compensation arrangement. Whether your attorney drafts that agreement or you use a template, the document should include:
Confidentiality and non-disclosure provisions for intellectual property and other proprietary information provided to the advisor
Duties and responsibilities of the advisor
Length of agreement
Advisor compensation
Hour commitment expected from an advisor will also vary, but up to twenty hours a quarter is a good rule of thumb. Access is vital when you need your questions answered quickly and accurately.
Vesting scheudle and cliff
An advisor may receive between 0.25% and 1% of shares, depending on the stage of the startup and the nature of the advice provided. There are ways to structure such compensation that ensure founders get value for those shares and still retain the flexibility to replace advisors, all without losing equity.
One option is a two-year vesting schedule with a six-month cliff, meaning that if the relationship doesn’t work out during the first six months and the advisor leaves, the company retains the equity.
Agreement Template by Wilson Sonsini and Carta
Value
Your startup needs will change over time, and you'll need to rely on an expert's perspective that your immediate team might lack. When a situation like this arises, that's the time you should look to your advisory board.
Advisors are a valuable resource that can provide the right help at the right time for your startup. But, keep in mind that an advisory board is not about bragging rights. It’s about finding dedicated allies with specific skills who can help you reach major milestones and get to the next level.
ATTEND
💻 25 October
Going Global: How to succeed across the pond?
As a startup with big ambitions, expanding into North America is likely a top priority. But what’s the difference between the US and Canada? How can you identify the right opportunities? Where can you find top investors? This Sifted Talks will explore the best routes to making it across the pond.
🇺🇸 26 October
It's back for the 5th time since October 2022. Come join 25+ CoS for our proven Chief of Staff Summit in NYC.
🇮🇹 3 - 8 November
Set amidst the timeless beauty of the Borgo Egnazia resort in the Italian south, Ethaly is an opportunity for like-minded engineers, researchers, and builders to collaborate, hang out, and hack together for seven days in a relaxing and stress-free atmosphere. More than just another hackathon event, Ethaly is about bringing together the brightest minds working on the new wave of infrastructure driving Ethereum forward.
🇫🇷 18 October
ai-Pulse: Europe’s Premier AI Conference
Join leaders and engineers for a one-day technical conference dedicated to AI innovation, research & implementation.
LEARN
👀 We are watching Fractional and Interim Recruitment by Pretiosum Ventures and Renoir
Who This Is For:
Early-Stage Start-Up Founders
C-suite Leadership
Talent Acquisition Professionals
What You Will Learn:
📌 Interim Management Excellence: Explore how interim managers can provide swift, targeted solutions to your start-up's needs and bridge crucial leadership gaps.
📌 Fractional Executive Consulting: Learn how fractional executives can offer specialised expertise without the full-time commitment, optimising resource allocation and strategy execution.
📌 Strategic Advisory Services: Uncover the benefits of strategic advisors in guiding your organisation through complex decision-making processes and long-term planning.
📚 And reading The Hard Thing About Hard Things by Ben Horowitz
Ben Horowitz of Andreessen Horowitz shares insights from his decades-long career at the heart of Silicon Valley. Building on the success of his popular blog, Horowitz explains how to build a business when there are no easy answers, using practical, hands-on advice that you won’t find anywhere else, especially not in business school.
Please note that any charts, data, or projections discussed are subject to change without notice, may differ from opinions expressed by others, and are for informational purposes only. They should not be relied upon when making any investment decision. The content speaks only as of the date indicated; Pretiosum Ventures has not independently verified third-party links or sources, nor makes representations about the enduring accuracy of such information.