2 min read What is a startup advisor? Startup organizations often require guidance from those with more experience and connections in their prospective field. Many startups are experts at their products or service but lack the business know-how needed to thrive. Startup advisors can help bridge these gaps, helping the startup to launch, develop, grow, and ultimately succeed. Let’s take a closer look at what a startup advisor is and what they specifically do Types of Advisors There are several types of startup advisors. Some of the most common include:: The Brand Name: This type of advisor offers their name to your company. This can be helpful to attract investors, employees, and customers. They typically bring some value in the form of advice, but it’s primarily their name. The Domain Expert: This type of advisor knows the industry well, both in technology and business. They can be helpful if you are moving into a new domain or the industry is changing rapidly. The Networker: The networker knows everyone in the industry or region. Those with a Rolodex and the ability to make connections can be very helpful, especially in fundraising and growing sales. The Business Modeler: This type of advisor may come from other industries, but they know business models and can bring new monetization tools to your business. The Confidant: The confidant can coach on the emotional side of running a startup. Startups have highs and lows that take the founder through the full range of emotions. This advisor can help the founder navigate through the ups and downs. Consider which role you best fill, and market to your appropriate niche. Advisor Roles In addition to there being many types of advisors, advisors also take many roles in their work with startups. For example, some advisors’ role is simply to fill gaps in the early stage of the startup. Advisors can be signed on as formal advisors, or some may provide support as informal advisors. In this scenario, there are no set goals, meetings, or formal advisor agreements. This is the most common way startups work with advisors. Some advisors take the role of a mentor in providing guidance. These mentors tend to focus their efforts on the founder. Some advisors take the role of consultant in performing very specific tasks for the company while others take on general responsibilities. Others may take on the role of a board of directors. This can be helpful in early-stage companies that are not yet ready to form aboard. Advisors here can provide oversight to the company and help the founder keep the broader picture in mind. Regardless of the role, you choose to fill, as an advisor, you will aim to bring experience, contacts, and networking to the startups you work with. Purpose of an Advisory Board An advisory board is a group of three to five people who provide advice on how to grow your startup. They bring experience, contacts, and domain expertise. Advisory boards help the company grow and succeed. In recruiting for your advisory board, startups typically try to consider the following: Advisory board members should contribute a diversity of skills, networks, and experiences. The advisors should fill in the gaps of the startup team which is most often a skeletal group. The board members should raise the profile of the startup with their reputations. They can additionally give the startup branding to help position the company with clients. Advisory board members should make a strong face for the company. Startups can use these members’ influence for recruiting the team, investors, and customers.  Advisory boards are different from a board of directors in that they don’t have any fiduciary roles and work informally with startups to grow the business.   Read more on the TEN Capital eGuide: Advising a Startup Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

2 min read Being an advisor to startup organizations can be rewarding in many ways. Advisors can make a significant difference in a startup’s likelihood of success with the right insight, connections, and resources. For those who are beginning their career path as a startup advisor, it is important to understand the industry best practices to ensure they are providing the best help possible to the startups they engage with. In this article, we discuss these best practices and provide advice on how to be the best advisor. Characteristics of a Good Advisor The following are characteristics of a good advisor and great goals to aim for as you develop yourself professionally: The advisor has first-hand experience in the industry, running a business, closing sales, and more. They listen and can relate startups’ problems to actionable solutions. The advisor has been through the same challenges and experiences as the startup is going through. They ask meaningful questions and probe to get to the bottom of things. Understand the startups’ point of view and can motivate them. They have opinions and share them even if those opinions are not popular. Advisory work is an important part of their time. They are effective communicators. They are articulate and can persuade. Provide actionable steps to help accomplish goals. They bring a network of investors, other advisors, and collaborators. Understanding of others’ opinions. Their work is their passion. How to Be a Good Advisor In choosing a startup to advise, it’s important to find the right fit. Here are some key points to make sure you are a good advisor to the startup you are aiming to collaborate with: Spend time with the startup to really understand if you can add value and if they are ready for an advisor. Make sure you communicate well with each other and ensure the personal style fits. Spend as much time on selecting a startup as you would an investment. If they have other advisors, check with them about their experience. Find out where they need the help the most.   Ask what’s slowing them down and where they avoid engaging. That’s an indication they need help. Avoid the day-to-day minutiae and focus on strategic objectives. For the day-to-day work, make introductions to people who can solve those issues. Make clear you will play the role of devil’s advocate and that you will ask a lot of difficult questions as part of your job. Spend the majority of your time with the startup listening and only talking when you have something important to say. Get to know the founder and others in the startup outside of work.  Come to an agreement about the time commitment for your work with the startup. Give the founder the hard answers as in the end, they will appreciate that more than the kudos. If the founder seems to be scattered, help them focus on a few key priorities. If it turns out not to be a good fit, then help the founder close it out. Finding a Startup to Advise Here are some key points to consider when finding a startup to advise: Choose startups that you can help. Make clear the work you plan to do such as introductions, networking, advising on the domain, or just sharing business experience. Define the duration of the advisor work- one to two years is a common timeframe. Determine the frequency and type of meetings, for example by phone, in person, or in a group meeting. Set aside time to do the work.  Negotiate compensation based on the work to be done. Compensation consists of a half percent to one percent of equity vested over time.  Be prepared to sign a non-disclosure and non-compete agreement. Have informal reviews with the company throughout the process to make sure you are meeting expectations. Add your name to the team as an advisor to help with fundraising activities. Join sales meetings where you can add value. Keep in mind, advising can be rewarding but it always comes at a cost: time and effort.   Read more on the TEN Capital Guide: Advising a Startup Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group