Advisory Shares and its Valuation: A Complete Guide

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Advisory Shares and its Valuation: A Complete Guide

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The term “Advisory Shares” refers to the equity compensation offered to experts and advisors by the business in its early period. Advisory shares are in the form of non-cash equity compensation which doesn’t come under the area of company profits or voting rights. Startups use advisory shares when they necessitate expertise but are low on funds. Advisors only accept advisory shares when they believe that the startup has the potential to grow in the future and they have the capability to guide it to succeed.

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