EquityVC says advisors-for-equity is rarely a good idea - here's why
“The reality is that, like, most advisors are busy people.”
and where sort of the advisers for equity come into play. When is this a good idea and when might this be a mistake or get thrown around too easily? I'm laughing because it's like,
I think it's rarely a good idea. Okay. There are scenarios where it can be a good idea, but it's like, my default here is don't do it. And and then, like, we can work out the exceptions when I talk to founders of why you might wanna consider doing it. The reality is that, like, most advisors are busy people. They don't really have the time to dedicate to the business on an ongoing basis. And when you give them equity, that equity has gone forever. And,
About this clip
Yuri Sagalov from General Catalyst shares his contrarian view that giving equity to advisors is usually a mistake. He argues that most advisors don't have time to meaningfully contribute to the business, but the equity you give them is gone forever.
Why this clip
A seasoned VC taking a strong contrarian stance against a common startup practice provides valuable perspective that challenges conventional wisdom.
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