The guide to advisor shares - Carta: Linking Your Thinking

The guide to advisor shares - Carta: Linking Your Thinking

When it comes to building a successful company, having a solid vesting schedule for advisors is crucial. Just like you have a vesting schedule for yourself and your employees, it is important to have one for your advisors as well. These agreements typically have a two-year schedule, with monthly vesting and no cliff.

Before promising equity to an advisor, it is 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 also sends a valuable signal to future investors. This way, they are not just passive advisors, but active supporters of your company's success.

When selecting advisors, it is important to approach it with the same mindset as choosing a co-founder. Advisors can play a critical role in the success of your company, but they can also become a distraction or even a liability if not chosen wisely. Therefore, it is crucial to carefully consider their expertise and how they can complement your weaknesses.

There are different types of advisors, each offering unique benefits. The first type is the "name advisor." The main benefit of having this type of advisor is the association and credibility they bring to your company. Their name recognition can open doors and attract attention from potential investors and partners.

The second type is the "practical advisor." Think of this advisor as your sounding board. They provide valuable insights and guidance based on their experience and expertise. It is not uncommon for practical advisors to also invest directly in the company, showing their commitment and belief in its potential.

Before formalizing the relationship with an advisor, it is important to figure out what you want from them. Determine what specific expertise they bring to the table and what areas they will help you with. It is also necessary to discuss the percentage of equity or other compensation they will receive. Once you come to an agreement, make sure to document it.

When it comes to advisor shares, it is recommended to talk to a lawyer and work with your potential advisor to create an agreement that works for everyone involved. This is especially important if equity is involved or promised. Documenting the agreement ensures clarity and avoids any misunderstandings down the line.

In terms of communication and expectations, it is the founder's responsibility to drive the cadence. They should be the ones building agendas and setting the expectations for interacting with the advisor. This ensures a productive and effective working relationship.

Now, let's shift our focus to the topic of linking your thinking. Different tools and behaviors can help us in this process. Evernote, for example, is a great tool for collecting ideas. It allows you to gather and organize your thoughts in one place, making it easier to refer back to them later.

If you love building stories out of your ideas, tools like Ulysses and Bear can be helpful. These writing tools provide a clean and distraction-free environment for crafting compelling narratives. They allow you to focus on the creative process without worrying about formatting or distractions.

For those who enjoy sorting and connecting ideas, tools like Roam and Obsidian are ideal. These tools act as connectors and databases, allowing you to create links and relationships between different ideas. They help you visualize the connections and find patterns that may not be immediately apparent.

Incorporating these tools and behaviors into your thinking process can greatly enhance your creativity and productivity. Whether you are collecting ideas, building stories, or connecting concepts, having the right tools at your disposal can make a significant difference.

In conclusion, when it comes to advisor shares, it is important to have a solid vesting schedule and to carefully choose advisors who can complement your weaknesses. Documenting the agreement and setting clear expectations are crucial for a successful working relationship. Additionally, incorporating tools and behaviors like Evernote, Ulysses, Bear, Roam, and Obsidian can greatly enhance your thinking process and help you make meaningful connections between ideas.

Actionable advice:

1. Before promising equity to an advisor, consider if they would be willing to invest directly in your company. This shows their commitment and aligns their interests with yours.
2. When selecting advisors, treat it like choosing a co-founder. Look for individuals who can complement your weaknesses and bring valuable expertise to the table.
3. Use tools like Evernote, Ulysses, Bear, Roam, or Obsidian to enhance your thinking process. Find the tool that best suits your needs and incorporate it into your daily workflow to boost creativity and productivity.