Quick piece of advice for clinicians being offered equity to join a startup’s clinical or scientific advisory board:
Its total BS when a founder says, “We’re offering you 10,000 shares. That’s 0.1% of the company, and since we just raised at a $100M valuation, that’s $100K of value.”
That is not really how it works. Your common shares are not worth the same as the preferred shares investors just bought. There will likely be future dilution. And the paper value is not the same as actual economic value.
Clinicians should evaluate these roles differently than typical startup advisors because you are not just giving advice. You are lending credibility, validation, and halo to the company’s care model.
The real questions are:
- Do you trust the founders and feel comfortable vouching for them?
- Do you believe the problem they are solving matters?
- Do you believe in the care model they are building?
- Do you believe the product can actually improve care?
If the answer is yes, the opportunity may still be worth it for the learning, relationships, and ecosystem connectivity.
But if you want to evaluate the economics, ask the founder directly: how much dilution do you expect the common stock to take, and what would my advisor shares be worth pre-tax in a low, base, and high exit case?