In running an ICO, the presence of advisors on the team can help burnish the image of the project and increase the chance of success. Currently, many advisors are recruited based on their previous experience with an ICO. As the industry progresses this will become less important and skills related to launching and growing the business will return as the driving factor.
Advisors need to bring additional skills and connections to the project as it’s a new space in which there is much to be discovered and learned.
Advisors can fill in the gaps of the team. Aside from technical skills they can help with the fundraise by reaching out to their network to find investors. Some have a background in the blockchain world and can help bring credibility to the team. Others have experience with ICOs and fundraising and can help with strategy.
Advisors should believe in your project and be able to add value.There’s no magic number of advisors although one typically compensates them so some thought needs to go into how to do so. A typical compensation plan is a small percent of tokens generated from the crowd-sale.
Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies.
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