My start up is in the process of striking a deal with a lawyer (first time founder). There’s a lawyer in my specific industry niche who is interested & believes in the product, who is also a partner at a respected firm. I was recommended to them by a mentor in the space, and the lawyer and I have been feeling it out for a few weeks. Now we’re starting to talk terms – they threw out 15% equity for a commercial advisory role (subject to solution alongside me) to advise on all commercial aspects of the business. They are saying this will be more proportionate with hands on and not hands off, light touch advising. Additionally, the actual legal work will need to be outsourced. which he would source).
Off the bat, this seems QUITE a lot for an advisor. Friends & mentors have also agreed. That equity could potentially go to future hires. He has negotiated a few exits already in this space, and sees a lot of potential in this product, so I am interested in seeing if we can find a number we agree on moving forward, but I’d like to start at 1% and go from there.
I am meeting with a few other lawyers in this space, so looking forward to seeing how those conversations pan out. However…am I being essentially scammed? Has anyone ever agreed to such a large amount for a commercial advisor? Any stories on how you’ve struck a deal with an advisor in this space?