What Founders Need to Know About Advisory Boards
As a founder, you quickly realize you can’t know everything. That’s where advisory boards come in: a curated group of experts who bring outside perspectives, networks, and credibility to your venture. In the health and AI sectors especially — where regulation, compliance, and complex go-to-market strategies are involved — the right advisors can be invaluable.
But too many startups treat advisory boards as a vanity metric or assemble them in a hurry, without clear roles or agreements. Drawing on lessons from my own journey — and from wise advisors like Alex Kosik — here’s what every founder should know about structuring an advisory board that actually moves the needle.
1. Be Clear About the Mission of Your Advisory Board
An advisory board is not the same as a board of directors. They don’t have formal governance or fiduciary responsibilities. Instead, they exist to:
✅ Share industry expertise
✅ Open doors through their network
✅ Validate strategy and product direction
✅ Provide a sounding board for the founding team
Define what you expect up front. Are you looking for help with fundraising? Regulatory strategy? Clinical network introductions? Each advisor should know where they can add value.
2. Choose Quality Over Quantity
Many founders make the mistake of stacking 10–12 names on a slide just for optics. But if none of those people are active or invested in your success, they won’t help.
Instead, focus on 3–5 highly engaged advisors who:
Have skills you do not
Will make time for you
Are passionate about your mission
Complement each other’s expertise
For example, you might combine a clinical advisor, a regulatory expert, and a commercial operator.
3. Set Clear Expectations
One of the best pieces of advice I got was: Advisors are not mind-readers. You have to spell out:
How often you expect to meet (quarterly, monthly, ad hoc)
What kind of feedback you need (product, pitch, team, etc.)
Whether you need introductions to partners or investors
How you will communicate (email, Slack, video calls)
Write these expectations down. Even an informal advisory letter or a lightweight advisor agreement helps everyone stay aligned.
4. Compensation Matters
Good advisors should be compensated — even if it’s only a symbolic amount. The most common structure is advisory equity:
✅ Typically 0.1%–0.5%, depending on their experience and involvement
✅ Vesting over 1–2 years, with a 3-month cliff
✅ Clearly defined scope of contribution
Cash payments are rare at the pre-seed or seed stage unless the advisor is performing deep, ongoing work. Equity aligns incentives and makes advisors feel like true partners.
5. Lessons from Alex Kosik: Think Long-Term
In a recent conversation, Alex Kosik — a seasoned operations expert and startup advisor — stressed the importance of matching your advisory board to your growth trajectory.
Key lessons:
Early on, lean on advisors with startup grit who can help validate product-market fit.
As you expand internationally, bring in advisors who understand cross-border compliance and market entry.
If you plan to raise in the U.S., make sure at least one advisor knows the American VC landscape and can support your visa or incorporation challenges.
Your advisory board should evolve as the business grows.
6. Maintain Engagement
Too many founders let their advisory boards fade after the initial excitement. Keep them close by:
✅ Sending regular updates
✅ Celebrating wins and acknowledging their contributions
✅ Scheduling check-ins proactively
✅ Sharing challenges honestly
Remember: good advisors want to help, but they cannot do it without context.
In Summary
A well-structured advisory board can dramatically increase your odds of success — especially in complex sectors like health, AI, and regulated markets.
✅ Choose engaged, complementary advisors
✅ Set clear roles and expectations
✅ Compensate with meaningful equity
✅ Keep them involved with transparent communication
The result? A circle of trusted allies who can help you navigate challenges, unlock opportunities, and build a stronger, more resilient company.