The guide to advisor shares - Carta: How to Choose the Right Note-Taking App

The guide to advisor shares - Carta: How to Choose the Right Note-Taking App

Introduction:
In the world of startups and entrepreneurship, having advisors is crucial for success. Just like employees, advisors should have a vesting schedule for their equity. However, before promising equity, it is important to consider if a potential advisor would be willing to invest in your company instead. This not only gives them more skin in the game but also sends a valuable signal to future investors. When choosing advisors, it is important to treat the process like picking a co-founder. The right advisor can be critical to your success, while the wrong one can be a distraction or even a liability.

Finding the Right Advisor:
When searching for an advisor, it is essential to identify what you need from them. Look for someone who can compensate for your weaknesses and provide valuable expertise in areas where you lack knowledge. Once you find the right advisor, it is important to establish a formal relationship with them. Put together a signed agreement that outlines their domain of expertise, what they will help you with, and the percentage of equity or other compensation they will receive. Documenting the agreement is crucial, especially if equity is involved. It is recommended to seek legal advice and work with your potential advisor to create an agreement that works for everyone.

Determining Advisor Shares:
The amount of equity granted to an advisor depends on various factors. In 2019, companies that raised under $2 million issued advisor RSAs ranging from 0.2% to 1% of the company, and advisor NSOs ranging from 0.1% to 0.5% of the company. Generally, the earlier an advisor joins a company, the higher the fully-diluted amount they will be granted. It is advisable to avoid a four-year vesting schedule for advisors, as they usually deliver most of their value upfront. After a year or two, you can reassess the relationship and decide whether to continue.

How to Choose the Right Note-Taking App:
Note-taking has become an essential part of our lives, and the market for note-taking tools is continually growing. Choosing the right app can greatly impact your productivity and creativity. There are three main note-taking styles: the architect, the gardener, and the librarian.

1. The Architect:
   Architects enjoy planning, designing processes, and structuring their ideas. They need a note-taking tool that allows them to easily organize and structure their thoughts. Apps like Notion, Coda, and Tettra are perfect for architects as they offer hierarchical structures based on pages and categories. These apps require some planning to determine where each idea belongs.

2. The Gardener:
   Gardeners enjoy exploring, connecting various thoughts, and brainstorming ideas. They need a note-taking tool that allows them to easily grow their ideas and make connections. Apps like Roam, Obsidian, TiddlyWiki, RemNote, and Milanote are ideal for gardeners. These non-linear apps offer bi-directional linking, allowing users to see both explicit and implicit links between ideas.

3. The Librarian:
   Librarians enjoy collecting and organizing information for easy retrieval. They need a note-taking tool that acts as a digital library, allowing them to store and retrieve their ideas effortlessly. Evernote, Bear, and OneNote are popular note-taking apps for librarians. These apps excel at storing large amounts of static information and providing easy retrieval options.

Choosing the Right App:
When choosing a note-taking app, you can either base your decision on your note-taking style or your specific use case. If you need to store a large amount of static information for easy retrieval, a librarian-style app like Evernote would be appropriate. On the other hand, if you need to brainstorm new ideas and engage in creative work, a gardener-style app like Roam or Obsidian is recommended. These apps are particularly useful for writers and researchers who need to generate ideas.

Conclusion:
Selecting the right advisor and the right note-taking app are essential for success in the startup world. When it comes to advisors, it is important to establish a formal agreement and document the terms, especially if equity is involved. Choose advisors who can compensate for your weaknesses and bring valuable expertise to the table. When it comes to note-taking apps, consider your note-taking style and your specific use case. Whether you're an architect, a gardener, or a librarian, there is an app out there that can enhance your productivity and creativity.

Actionable Advice:

1. Before promising equity to an advisor, consider if they would be willing to invest in your company instead. This shows their commitment and sends a positive signal to future investors.
2. When choosing an advisor, treat the process like picking a co-founder. Look for someone who can compensate for your weaknesses and provide valuable expertise.
3. When selecting a note-taking app, consider your note-taking style and your specific use case. Choose an app that aligns with your needs and enhances your productivity and creativity.