Migicovsky had success reaching out to CEOs who had built consumer electronics companies and were about three to five years ahead of him. Their experience was recent enough to offer practical examples that still applied to his situation.
Startup Advisor Equity?
Speaker
Eric Migicovsky, Pebble Watch founder, discusses choosing and compensating startup advisors with Y Combinator.
More experienced mentors were useful for strategic conversations, while nearer-stage advisors could offer specific referrals, such as candidates for a domain hire. Migicovsky recommends drawing on several advisors because the CEO remains responsible for decisions.
Advisors bring experiences from their own companies, but those experiences will not always transfer directly. The founder needs to decide how each piece of advice applies to the current situation.
Migicovsky describes a common advisor option grant of about 0.25% to 0.75%, vesting monthly over two years, sometimes with a cliff. For one marketing mentor, he scheduled a 15 to 20 minute call every Monday at 8:30.
Takeaways
- Look for advisors whose relevant startup experience is recent enough to be specific.
- Use different advisors for practical referrals and strategic feedback.
- Get perspectives from several people, then make the decision yourself.
- Tie advisor equity to a defined commitment, such as a regular meeting cadence.
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