| My co-founders and I just began searching for $1.5-2M of funding. We met with someone who has many contacts and friends who are angels or VCs. After meeting with us, he surprised us by offering to: * Be an independent director of our startup. He'd advise on the shareholders' agreement, business relationships, and business model design and strategy. In return, he's asking for $1500/mo plus $1500 for each Board meeting. This would be payable if we raise money or reach a certain amount of revenue. * Be a consultant for raising funds. He'd advise us on our approach and pitch, and providing introductions via his commercial and personal network. In return, he's asking for 3% of the raised funds. My co-founders and I are new to raising funds, and thus don't know how to evaluate this offer. Assuming that he's experienced with startups and raising capital, and has an extensive network of personal and commerical contacts, is this offer fair? |
Investors like to see excitement. His connections are going to know that he doesn't believe in you long term (he's making a cash grab). How is that going to look?