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Launchopedia
    • Home
    • How to…
      • Recent Posts

        • The Holy Grail of Entrepreneurship: The Term Sheet, Pt. 3 – Capitalization Table

          The Holy Grail of Entrepreneurship: The Term Sheet, Pt. 3 – Capitalization Table

        • 6 Key Lessons for Business Improvement at Your Startup

          6 Key Lessons for Business Improvement at Your Startup

        • Startup Funding: Meet the Players at the Table

          Startup Funding: Meet the Players at the Table

        • 9 Constituents Investors Want to Talk To Before to Funding Your Startup

          9 Constituents Investors Want to Talk To Before to Funding Your Startup

        • 5 Steps from Concept to Startup

          5 Steps from Concept to Startup

      • More in How To

        • How to Build a Winning Team
        • How to Create a Strategy, Vision and Mission
        • How to Create an Advisory Board
        • How to Get Funding
        • How to Improve Your Company
        • How to Improve Your Pitch
        • How to Start Your Company
    • Funding Life Cycle
      • Concept Stage
      • Seed Stage
      • Early Stage
      • Growth Stage
      • Mezzanine Financing
    • Startup Ecosystem
      • Recent Posts

        • Entrepreneurial Ecosystem Spotlight: Nashville, TN

          Entrepreneurial Ecosystem Spotlight: Nashville, TN

        • Entrepreneurial Ecosystem Spotlight: Knoxville, TN

          Entrepreneurial Ecosystem Spotlight: Knoxville, TN

        • Accelerators Focusing on Women-led Startups

          Accelerators Focusing on Women-led Startups

        • Funding Options for Women Entrepreneurs: An Improving Ecosystem

          Funding Options for Women Entrepreneurs: An Improving Ecosystem

        • Entrepreneurial Ecosystem Spotlight: Tri-Cities, TN/VA

          Entrepreneurial Ecosystem Spotlight: Tri-Cities, TN/VA

      • Startup Stories

        • Business Startup Spotlight
        • Women Entrepreneurs Spotlight

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        • Entrepreneurial Ecosystem Spotlight

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Advisory Board

April 28, 2015 by FundingSage -

A group of external advisors to a private equity group or portfolio company. Advice provided varies from overall strategy to portfolio valuation. Less formal than a Board of Directors.3


Related Terms

Equity | Portfolio | Valuation

Related Articles

Advisory Board Creation: What Is The Single Most Important Factor?

12 Items to Include in an Advisory Board Recruitment Package

ADR
Allocation

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Definitioner

HR
Human Relations
Valuation
The process of establishing the value or worth of an asset or a company. Factors impacting company valuation include it's market, management, technology, assets, capital structure and prospective future cash flows. 6
Board of Directors
A group of people elected by the company's shareholders (often to the terms of the negotiated Shareholders Agreement) that makes decisions on major company issues, including hiring/firing the Chief Executive Officer.7
Related Terms Shareholder's Agreement | Operating Agreement | Staggered Board Related Articles Board Observer Rights: What Are They and Why Are They Important to Investors? 14 Types of Information Investors May Request As Part Of Their Due Diligence Checklist For Your Startup
Portfolio
A strategic collection of startup companies invested in by an angel, angel group or Venture Capital Fund.6
Equity
  • Ownership in the capital of a Company. In corporations, it is called “stock”; in limited partnerships or LLCs, it is called “interests” or  “units.”3
  • This designation is given to a stockholder’s ownership in a company. The amount of ownership is obtained when an individual or corporation purchases one or more shares of stock (equity shares).  The more equity purchased, the greater the ownership.4
Private Equity
  • A company ownership position that is not listed and cannot be traded on a public securities exchange.  Issuance, ownership and exchange of private securities are regulated differently from those of public securities under federal and state law.1
  • Equity securities of companies that have not “gone public” (are not listed on a public exchange). Private equities are generally illiquid and thought of as a long-term investment. As they are not listed on an exchange, any investor wishing to sell securities in private companies must find a buyer in the absence of a marketplace. In addition, there are many transfer restrictions on private securities. Investors in private securities generally receive their return through one of three ways: an initial public offering, a sale or merger, or a recapitalization.3
  • Private equities are equity securities of unlisted companies. Private equities are generally illiquid and thought of as a long-term investment. Private equity investments are not subject to the same high level of government regulation as stock offerings to the general public. Private equity is also far less liquid than publicly traded stock.5