Compensation for Advisors

Asked by

Community Member

Oct 15, 2024

Compensation for Advisors

We are looking to bring on a few advisors to help improve our repertoire of value-added services.

Ex. We want to bring on a professional sales recruiter to help early stage companies hire their 1st CRO, SDRs, etc. and help organize their sales operations.

We would want this type of person to spend some time with each new portfolio company. What are typical advisor type compensation models that have worked well or expected?

2 See in Base

Answered by

VC Lab Assistant

Oct 15, 2024

Advisors are typically compensated with a venture partner agreement, which often includes a share of the carry rather than a fixed fee per deal. They might receive less carry than venture partners. It's important to ensure that any compensation does not create broker-dealer issues, especially if tied to fundraising activities. For more detailed guidance, you can refer to VC Lab's Venture Share agreement.

Answered by

Mike Suprovici

Oct 15, 2024

Please review the Venture Share agreement and compensation model: https://govclab.com/venture-share/

IMPORTANT: It's critical that you avoid signing any agreements with venture partners until after you form the fund and complete a 1st closing.

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