This is an anonymous post from an Elpha member.

Consulting for equity at a startup

Lyndsay158·Jun 19, 2021

Hi ladies, Was curious to know if anyone has ever taken on a project in exchange for equity/partial equity compensation? It's an interesting proposal, but would like to know more about things to watch out for, what to set up, has this worked out well for you etc. Also, I've seen many different ways people are calculating the total compensation. Please share any insight on that too! Thank you so much!

sophieaigner·Jun 21, 2021

Hi Lyndsay, I would say the most common equity agreement for Advisors to startups is the FAST agreement: https://fi.co/fast.That being said, if your effort is substantially more than this you may want to use this as simply a baseline for knowing where to start. I would make sure that you know:-Specific tasks/projects they want you to work on-Level of effort - are you providing strategic guidance or will you be implementing the task yourself?-3-month, 6-month and 12-month KPIs-Long-term vision of the startup-How you will work with them on a day-to-day basis-If there are other advisors they have brought on on the same basis, you could request an informal chat with them to get their feedback-Have a plan in place if KPIs are met/not met. For example, will this remain an equity only role indefinitely or will their be bonuses if KPIs are met?

Monisha·Jun 22, 2021

I can help you with that, have already elpha members on the equity part.Please shoot me an email at [email protected]