The Age of AI has begun: The Guide to Advisor Shares

Hatched by Glasp
Jul 19, 2023
4 min read
2 views
Copy Link
The Age of AI has begun: The Guide to Advisor Shares
In the fast-paced world of startups and technology, having the right advisors can make all the difference. Just like you have a vesting schedule for yourself and your employees, it's crucial to have one for your advisors as well. These agreements often have a two-year schedule, vesting monthly, with no cliff. This ensures that the advisor is committed to the long-term success of your company.
Before promising equity to an advisor, it's worth considering if they would be willing to invest in your company instead. By investing directly, they have more skin in the game and it sends a valuable signal to future investors. It shows that the advisor believes in your company and its potential.
When selecting advisors, it's important to pick them like you would a co-founder. An advisor can be critical to your success, but they can also be a distraction or even a liability if not chosen carefully. Look for someone who can compensate for your weaknesses and bring a unique perspective to the table.
There are different types of advisors, each offering their own benefits. The first type is the "name advisor." The main benefit of having this type of advisor is through association. Their reputation and connections can open doors and provide credibility to your company.
The second type is the "practical advisor." Think of them as your sounding board. They can offer guidance and advice based on their experience and expertise. It's not uncommon for advisors to also invest directly in the company, showing their commitment and belief in its potential.
Before formalizing the relationship with an advisor, it's important to establish what you want from them. Figure out what their domain of expertise is and how they can help you. Discuss the percentage of equity or other compensation they will receive. Once a decision is made, it's crucial to document the agreement, especially if equity is involved.
Communication is key in the advisor-founder relationship. As the founder, you are responsible for driving the cadence of communication and setting expectations. Build agendas for meetings and ensure that both parties are aligned in terms of interaction.
When it comes to advisor shares, there is no one-size-fits-all approach. The amount of equity granted to advisors can vary depending on the stage of the company and the value they bring. In 2019, advisor RSAs ranged from 0.2% to 1% of a company, while advisor NSOs ranged from 0.1% to 0.5%.
It's important to avoid a four-year vesting schedule for advisors, as most of their value is usually delivered upfront. Consider re-evaluating the relationship after a year or two to see if it's still beneficial for both parties.
In the age of artificial intelligence (AI), the world is experiencing a fundamental shift. AI has the potential to change the way people work, learn, travel, get healthcare, and communicate with each other. Entire industries will reorient around AI, and businesses will be distinguished by how well they leverage it.
One of the key opportunities for reducing inequity in the United States is through improving education, particularly in math. Basic math skills set students up for success, regardless of their chosen career. However, math achievement is declining, especially among Black, Latino, and low-income students. AI can help reverse this trend by providing personalized learning experiences and targeted interventions.
To ensure that everyone benefits from AI and that it doesn't contribute to inequity, governments and philanthropy need to play a major role. They must ensure that access to AI is widespread and that it is used responsibly and ethically.
AI has the potential to revolutionize the way people teach and learn. In the next five to ten years, AI-driven software will deliver on this promise. Personalized learning experiences tailored to individual interests and learning styles will keep students engaged and motivated. Immediate feedback and measurement of understanding will enhance the learning process.
However, it's important to note that AI will never replace the work of teachers. Great relationships between students and teachers are essential for effective learning. AI will enhance the classroom experience but will never replace the human touch.
While AI offers immense benefits, it also comes with responsibilities. The world needs to establish rules and regulations to ensure that the downsides of AI are outweighed by its benefits. Access to AI should be equitable, regardless of geographic location or socioeconomic status.
In conclusion, the age of AI presents both opportunities and responsibilities. When it comes to advisor shares, it's crucial to have a vesting schedule and carefully select advisors who can bring value to your company. AI has the potential to transform education and reduce inequity, but it requires the involvement of governments and philanthropy. Ultimately, the world needs to ensure that AI benefits everyone and that its development is guided by ethical principles.
Actionable advice:
- 1. When selecting advisors, consider if they would be willing to invest in your company instead of taking equity. This shows their commitment and belief in your company's potential.
- 2. Establish clear expectations and communication channels with your advisors. As the founder, you are responsible for driving the cadence of communication.
- 3. Document any agreements made with your advisors, especially if equity is involved. Work with a lawyer to ensure that the agreement is fair and mutually beneficial.
Copy Link