Whether you’ve built a company from the ground up or have a specific skill set start-ups want, becoming a start-up advisor allows you to use your experience to help founders succeed. Start-up advisors are trusted partners who can see the big picture and help guide businesses through their most challenging moments.

To be a successful advisor, you need to understand the mindset of start-up founders and address the unique challenges these early-stage companies face. Below, we explain what it takes to become a great start-up advisor, the most important skills you can contribute, and how to build meaningful connections with startups.

What’s in this article?

• What is a start-up advisor?
  
• How to become a start-up advisor
  
• How to set your terms
  
• What legal considerations should you keep in mind as a start-up advisor?
  
• How to find start-ups that need advisors
  

What is a start-up advisor?

A start-up advisor is someone who provides guidance, expertise, and connections to a start-up, typically in exchange for equity or compensation. Advisors might help founders make decisions, avoid common pitfalls, or gain access to partnerships, investor introductions, and hiring.

A start-up advisor can play a number of roles, including:

• Helping to shape the company’s strategy

• Refining the product-market fit

• Assisting with fundraising

• Providing industry-specific knowledge

Their involvement can range from serving as an occasional sounding board to having more structured participation, such as attending regular advisory board meetings.

How to become a start-up advisor

Start-up advisors typically contribute a mix of specialised knowledge, practical experience, and industry connections. Here’s how you can build up the expertise and skill set to become an asset:

Gain practical experience in the startup environment

• Work at a start-up: Gain insight into common challenges, such as scaling, fundraising, product development, and team management. You need to know what it takes to launch, grow, and scale a business in an ever-changing environment.

• Found your own start-up: If you’ve been a founder or co-founder, you have intimate knowledge of the highs and lows of launching a business.

Develop deep industry knowledge

• Specialise in a niche: This could be fintech, healthcare, software-as-a-service (SaaS), or another field. Start-ups value experts who know their industry well. It can be beneficial to specialise in a certain skill set, such as marketing, finance, operations, or product development.

• Keep up with the field: This includes the latest technology, market shifts, and regulatory changes. Attend industry conferences, read leading publications, and network with peers to keep your knowledge sharp and relevant.

Master business fundamentals

• Familiarise yourself with start-up financials: You can focus on business models, revenue streams, and financial metrics. Early-stage companies in particular will benefit from expertise in financial modelling or fundraising strategy.

• Learn about growing a start-up: This can include growth hacking, performance marketing, and customer retention strategies. - often look for advisors who can guide them through customer acquisition, scaling, and entering new markets.

Build a strong network

• Nurture relationships with investors: This can help you connect start-ups with venture capitalists (VCs), angel investors, and other funding sources. Help guide founders through the fundraising process, from pitch decks to term sheets and VC meetings.

• Create an industry network: Introduce start-ups to key partners, potential customers, or talent.

Develop a track record of success

• Demonstrate your accomplishments: Show how you’ve helped start-ups or scaled businesses in the past. Start-ups want to see that you’ve been able to translate advice into real results, whether through increased revenue, successful funding rounds, or strategic reassessments.

• Show your impact: Collect testimonials or case studies from past clients or employers.

Hone communication and mentorship skills

• Provide tailored advice: Know when to impart guidance and when to let founders figure things out. Startups need advisors who will listen to their needs and challenges and provide appropriate help.

• Be approachable, patient, and relatable: Founders often turn to their advisors during particularly stressful times, and this support can make a big difference.

Stay flexible and adaptable

• Customise your guidance: Understand different stages of growth, and adjust your advice depending on where the company is in its lifecycle. Start-ups at different stages (e.g., pre-seed, seed, Series A) require different types of advice. For example, the challenges of scaling a company are vastly different from those of launching it.
  

How to set your terms

Setting your terms as a start-up advisor means balancing your value with what the start-up can offer in return. Here’s how to approach compensation, equity, and time commitment:

Compensation vs. equity

• Equity: In most cases, advisors take a small equity stake (usually 0.25%–1%) in exchange for their services. The younger the start-up, the more likely they will compensate you in equity. Negotiate vesting terms (usually over a 1–2 year period) to align with the start-up’s growth.

• Cash compensation: Some start-ups might pay a small monthly retainer or project-based fee. Early-stage companies often have limited cash. Therefore, compensation is more common with later-stage start-ups or specialised services.

Time commitment

Be clear about how much time you can commit. Typically, advisors put in a few hours a month, but this can vary depending on the start-up’s needs. Outline how often you’ll be available for calls, meetings, or check-ins to avoid misunderstandings later.

Craft an advisor agreement

Draft a simple contract that outlines your equity or cash compensation, vesting schedule, time commitment, and responsibilities. Make sure the terms reflect the value you bring to the start-up while staying fair to both parties.

What legal considerations should you keep in mind as a start-up advisor?

When advising start-ups, these important legal considerations can help protect you and the company:

• Advisor agreement: Have a formal agreement that spells out what you’re contributing, how you’ll be compensated (i.e., cash or equity), how much time you’re committing, and how long the agreement lasts. If you’re receiving equity, make sure you agree on a vesting schedule.

• Confidentiality: Start-ups will probably ask you to sign a non-disclosure agreement to protect sensitive information, such as business plans or intellectual property (IP).

• Conflicts of interest: If you’re advising multiple start-ups or have other ventures, communicate this up front. Avoid advising competing companies. Some start-ups might ask for a non-compete clause in the agreement, but tread carefully, as this could limit your ability to work with other businesses in the future.

• IP ownership: If you’re contributing to product ideas or strategy, clarify who owns the IP. Typically, anything you create for a start-up belongs to them.

• Liability: Make sure the agreement limits your liability in case the start-up runs into legal or financial issues.

• Tax implications: If you’re getting paid in equity, talk to a tax professional. Different types of equity have different tax treatments. Make sure you understand how it will impact you.

How to find start-ups that need advisors

Here are some tips to find companies that need advisors:

Use your network

• Contact professional connections: Begin by reaching out to founders, entrepreneurs, or investors you already know, and offer tailored help based on your expertise. For example, if you’re skilled in growth marketing, let them know you can help a start-up struggling to scale efficiently or address a tricky product reassessment.

• Reach out to investors: Build relationships with angel investors, VCs, or syndicates, and let them know you’re available to help their portfolio companies grow. Investors often see promising start-ups that are too early-stage to warrant an executive hire but still need strategic guidance.

Embed yourself in start-up communities

• Join niche start-up programmes: These can include accelerators and incubators, which are often the first stop for startups looking for mentorship. While programmes such as Y Combinator or Techstars are well-known, also look for niche accelerators related to your industry expertise (e.g., healthcare, fintech, sustainability). Advisors who specialise in specific areas are highly sought after in these spaces.

• Participate in online communities: Visit Indie Hackers, AngelList, specialised start-up Slack groups, or subreddits (e.g., r/startups, r/entrepreneur). Answer questions or provide insights to position yourself as an authority, and look for founders who are openly discussing their challenges – they might be ideal candidates for advisory help.

Attend events that attract early-stage founders

• Go to conferences or competitions: While high-profile events – such as TechCrunch Disrupt – are valuable, consider attending smaller, more focused conferences or pitch competitions. You might find early-stage start-ups that need direct, hands-on advisory support. Local or industry-specific events tend to attract founders who are more accessible and often more open to advisory relationships.

• Attend or volunteer at local or virtual demo days: Often, founders are still refining their business models and looking for advisors who can help them with launching. After the pitches, engage with the teams whose ideas resonate with your expertise and suggest ways you can help.

Offer value through mentorship first

• Volunteer as a start-up mentor: Target early-stage programmes – such as the Founder Institute, MassChallenge, or local university-based incubators – for volunteer mentorship. Many start-ups in these programmes are at the pre-seed or seed stage and looking for advice but don’t yet have formal advisor agreements in place. Providing mentorship here can lead to more formal roles later on.

• Offer free guidance: Partner with local coworking spaces, incubators, or virtual communities to host “office hours” where start-ups can get free advice. This positions you as a go-to expert, and founders who benefit from your advice might want to formalise the relationship.

Publish content that showcases your expertise

• Write about common challenges: Consider writing in-depth articles or case studies that focus on specific issues startups face, such as scaling a SaaS product or navigating Series A fundraising. Founders who are struggling with these issues might reach out to you once they see you understand their challenges.

• Contribute to influential platforms: These can include TechCrunch, VentureBeat, or industry-specific blogs. Offer actionable, niche advice that will resonate with founders who are seeking solutions.

• Host webinars or virtual workshops: Focus on topics start-ups care about, such as “How to Nail Your Seed Round” or “Scaling Without Burning Out.” These virtual events can attract founders who need ongoing guidance.

Direct outreach with a personal touch

• Identify start-ups you’re excited about: Search platforms such as Crunchbase, AngelList, or Product Hunt. Before contacting them, familiarise yourself with their business models, recent funding rounds, and specific challenges.

• Personalise your message: In your outreach, highlight what you can do for them based on their unique needs. Offer a clear, actionable suggestion that shows you’ve done your research. For example: “I saw your product just launched, and I noticed you’re targeting small and midsize businesses (SMBs). I’ve helped other start-ups like yours scale their customer bases – I’d love to chat about how I could help you refine your acquisition strategy.”

Engage with talent and deal platforms

• Monitor Wellfound: Many start-ups list roles for advisors that can range from important guidance to helping with specific projects.

• Join syndicates or angel networks: These can help you access start-ups at early stages. Even if you’re not an investor, offering your expertise to companies within the network can open doors to advise them later.