Already an Angel? You can become a VC, and we'll invest in your fund. Learn how September 1.
Save My Free Seat
Previous Post
Next Post
1

Asked by

Community Member

on

in

General

Founder request for business help

A rockstar founder is asking me to help with his company - well beyond a bit of free coaching and guidance (negotiate a license, coach interim CEO, other substantial efforts) in exchange for equity &/or cash.  What are the top considerations prior to raising a venture fund that may eventually want to invest in the company?
1 See in Base
0

Answered by

Community Member

on

Here are the main considerations:

1. Venture funds can't receive advisory shares. So, if the founder makes you an advisor, you can't transfer that ownership to the fund.
2. If you are an advisor or consultant, that will be a conflict of interest with your fund. 
0

Answered by

Community Member

on

Thanks for the helpful reply.  To clarify #2, does this only apply to an advisor who receives cash or equity compensation? 
0

Answered by

Community Member

on

It applies to both

Join VC Lab

Raising your first fund? VC Lab has helped launch 950+ venture firms, with no fees and no equity taken. The average Start Fund reaches first close in 58 days.
Apply Now