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Baldwin: Advisors – Stop Screwing Startups

Today’s post of the day comes from Micah Baldwin. Micah isn’t a VC – he’s an entrepreneur, CEO, and experienced mentor (he’s been involved in TechStars since the  beginning.) He has a great rant titled Advisors Stop Screwing Startups. He makes several very important points about how advisors are screwing startups, why they should stop, and why entrepreneurs should take responsibility for 100% of their equity and be a lot more careful with it.

As a long time advisor for many companies, I’m a huge believer in “give before you get.” If you are an amazing advisor, your reputation should precede you. Be free – help – and when you are providing real value, entrepreneurs should give you something in return. But entrepreneurs, if the advisor asks for something up front, be skeptical. Sometimes its legit, but often it’s not.

April 30th, 2012 by     Categories: Advisors     Tags:
  • http://filtrbox.com/blog arinewman

    Great advice for any early-stage CEO or entrepreneur. It should ultimately be a win-win but if the advisor’s hand is out from the get-go that’s a red flag for sure. 

  • http://www.brandings.com/ Kim Oakland

    With mentors and advisors to start-ups, the old adage that “you get out of it, what you put into it” holds true.  I’ve been involved with a couple mentors that were not looking out for my best interest, but had their own agenda.  Here are a couple of resources that helped me and they didn’t want anything in return: http://www.sba.gov, http://www.brandings.com , and http://www.score.org

  • Otachi8

    The next post should be “Incubators Stop Screwing Startups  Along with the many “contests” including those that you would think were without taint like a big University in South Florida who had a long day with that ended with a company winning that had it’s SVP as one of the judges and a Coach. 

    • Otachi8

      Sorry about the spelling errors.  Broke my right hand.

  • http://www.tcc5.com/ Jack Flashdrive

    A cautionary tale worth hearing. I help companies, including startups, go public but provide information on the process (IPO, reverse acquisition, Reg D, S-1 Registration etc.) for no charge. Always know what you are getting for your money.