Founder request for business help

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Community Member

Oct 12, 2023

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?

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1 answer

Mike Suprovici

Accepted Answer

Oct 13, 2023

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.

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

Community Member

Oct 13, 2023 10:13pm

It applies to both

Mike Suprovici

Oct 13, 2023 10:31pm

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