Definition
Advisory Capital is a form of investment where, in addition to or instead of monetary support, investors provide expertise, mentorship, and industry connections to help a startup grow.
Frequently asked questions
What is the difference between equity and advisory?
Equity involves ownership in a company, while advisory provides guidance and recommendations for business strategies and decisions.
What does 5% advisory shares mean?
5% advisory shares mean that the advisor receives ownership of 5% of the company in exchange for their advice and guidance.
What is the disadvantage of advisory shares?
Advisory shares don`t offer voting rights or ownership stakes. It limits the investor`s control and potential profits in the company.