The startup ecosystem is growing up fast, and with it comes a new business worth talking about: advising startups.
And, as usual, SyndiCat has its own take!
Most young companies begin with a clever product idea that plugs a gap in the market. But pretty quickly, the founders realize they need more than just code and customers.
They need guidance — on fundraising, marketing, hiring, product tweaks, and a dozen other things. On-board the advisor. Well, not always on the Board, but very much in the founder’s ear kind.
Why do people sign up as advisors? Sometimes it’s conviction in the product, sometimes it’s a college connection, sometimes it’s just a friend helping out.
But most often, it’s the investors themselves. They already have skin in the game, so who better to roll their their sleeves up? And that’s the advisor type I want to zoom in on.
VC’s today are no longer just writing cheques. Everyone’s money is green — the “extra” is what sets them apart. The best investors bring more than capital: GTM playbooks, marketing muscle, hiring pipelines, tech reviews, customer intros, fundraising advice, and a founder community to lean on.
In theory, sounds great. In practice? It’s a little more complicated.
Two things to think about:
1. Compensation & role clarity.
Warm intros and a quick call? Probably part of the package.
But if you, the investor, are taking on a functional responsibility — running sales, leading marketing, shaping product — then what’s the deal?
Should you get extra equity, lower entry price, or SOPs for that? Does this start to blur the line between being a financial investor and being a strategic partner? Does the principal (investor) become the agent (function-owner) of the agent (startup)?
At some point, it even edges into “quasi-acquisition” territory, with implications for valuation. Complex! Complex!
2. Survival vs. Growth.
Ask yourself: is your support vital to keep the startup alive, help it succeed in a basic sense, or will it fuel exponential growth?
If it’s the first two, maybe step back — you don’t want your IRR hostage to hand-holding. But if your expertise will truly be the rocket fuel behind their growth story, then maybe it’s time to structure a hybrid deal that reflects your added value.
The bottom line? Advising your own portfolio company is more nuanced than it looks.
It’s not just about being helpful; it’s about being clear on roles, rewards, and whether your involvement is a safety net or a growth multiplier. I am sure there are other nuances, and I will be happy to hear them.
If you’re looking to create SPVs or simply exploring your options, you’re welcome to book a call with us for a walk-through of our platform and everything we’ve built.
Cheers!
