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Finding industry-specific advisors

Finding industry-specific advisors

+ weekly list of handpicked startup events for founders and investors in London

Vasily Alekseenko
September 23, 2024

In partnership with

Industry-Specific Advisors: Finding and Compensating Them

Building your startup means surrounding yourself with the right people. Unfortunately, many founders end up with a mix of advisors who often provide poor advice. Just because someone has a strong background doesn’t guarantee they’ll be a great advisor. Advising is a unique skill; having experience doesn’t automatically mean someone can share that knowledge effectively and empathetically.

Key Qualities to Seek in an Advisor

When selecting an advisor, it’s crucial to find someone who can empathize with your situation and apply their experiences to your specific needs. This ability is what truly matters.

A common pitfall is gathering multiple advisors—typically other founders or investors—who end up delivering the same advice. This can lead to confusion. It’s better to start with just one startup advisor who can guide you through the entrepreneurial landscape and ideally understands your industry well.

Additionally, consider including:

An Advisor Who Understands Your Customer: This individual should have insights aligned with your target market and a useful network.
A Legal Advisor: Lawyers can provide critical guidance that helps you avoid expensive mistakes in the long run.

How to Locate Industry Advisors

So, how do you find these advisors? LinkedIn is an excellent resource. Look for people at the director or executive level in your field who frequently share insights. This suggests they’re eager to impart their knowledge. Also, check their profiles for any previous investments or advisory roles with other startups.

Using Sales Navigator on LinkedIn can help you compile a list of potential advisors. After that, use standard cold outreach methods. Reach out with relevant information, showing genuine interest in their work and indicating that you have something to offer beyond just financial compensation.

Compensating Advisors

In the beginning, many advisors expect to be compensated with equity. However, once you secure a significant funding round, it may be necessary to shift to cash compensation. If they’re not getting paid, they might not remain committed. Consider offering a monthly stipend to cover travel and other related expenses.

To establish this arrangement, utilize the FAST (Founder Advisor Standard Template) to clarify roles and expectations.

Conclusion

Finding and compensating the right industry-specific advisors is vital for your startup's success. Prioritize quality over quantity and ensure your advisors can effectively share their insights in a way that applies to your context. This approach will help you build a solid foundation as you tackle the challenges of entrepreneurship.

DEMO DAY UPDATE 👀

It was a lot of hard work to select the TOP 100 who will be pitching at London’s Largest Demo Day, but it’s finally finished! According to our 60 investor partners, this time we have packed a lot of great companies. You can see the details on all of them here.

The next step is to finalize the agenda; most of the speakers and panels are confirmed. We just need to update the details on the website. Stay tuned!