Darryl Hicks, founder and CEO of Flexpay, discusses equity compensation structures for pre-revenue startup advisory boards on The Product Market Fit Show.
“Most of my people ended up coming in around 0.2%. And then of course that gets diluted down when you bring in future investment rounds and stuff like that.”
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More from Darryl Hicks
Insight
Hicks: Engage startup advisors on demand rather than on recurring cadences
“And every single one of my advisors, this is key, said, I can do this, but I cannot commit to like monthly meetings or quarterly meetings or anything like that. Like call me anytime, email me anytime, ad hoc, you're stuck. Great. I know a lot of people, and Da…”
Darryl HicksJun 15, 2022▶ 13:18How to Build a Board of Advisors | Darryl Hicks, Founder of Flexpay · PMF Show
Opinion
Hicks: Building advisory board pre-revenue was smartest Flexpay decision
“Smartest thing I ever did in Flex Bay was building an advisory board before I even had a dollar of revenue.”
Darryl HicksJun 15, 2022▶ 20:29How to Build a Board of Advisors | Darryl Hicks, Founder of Flexpay · PMF Show
Insight
Hicks: Advisory boards should provide strategy and connections, not operational execution
“And then how you interact with these people is really around three things. It's conversations, strategy, and connections. So conversations, not action. Strategy, not execution. And connections is really the biggest part, right? What do you need to do and who d…”
Darryl HicksJun 15, 2022▶ 7:48How to Build a Board of Advisors | Darryl Hicks, Founder of Flexpay · PMF Show
Disclosure
Hicks: Flexpay added an advisor purely for network and brand credibility
“One of the people that I added onto my board was kind of purely for that reason. Really the only value I knew this person was going to bring was their connections. How many people they know and how many people know them. And just to be able to go around and sa…”
Darryl HicksJun 15, 2022▶ 15:20How to Build a Board of Advisors | Darryl Hicks, Founder of Flexpay · PMF Show
Insight
Hicks: Recruiting active operators as advisors simplifies vetting for depth
“If I put that filter of saying, I'm only going to work with people that are actually working and building their own business and really moving the needle in a significant way and what they are doing day to day in their own job. I kind of don't need to worry as…”
Darryl HicksJun 15, 2022▶ 20:09How to Build a Board of Advisors | Darryl Hicks, Founder of Flexpay · PMF Show
Insight
Hicks: Never ask prospective advisors to join on the first call
“The first conversation, when you reach out to these people, you're never asking them to be on the advisory board. That's almost a surefire way to have a blow up in your face.”
Darryl HicksJun 15, 2022▶ 22:17How to Build a Board of Advisors | Darryl Hicks, Founder of Flexpay · PMF Show
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