“Advisory capital is an investment of experience, expertise, social capital, and public authority into a company in return for some form of equity in the company. An ‘advisory capitalist’ or ‘advisor capitalist’ is one who makes such an investment.
The parallel with venture capital is intentional. The argument is that a traditional venture capitalist provides both cash capital and advisory capital. Often venture capitalists serve as members of the board of directors for companies in which they have invested. However, some companies may need the advisory aspect and not need the cash investment. Advisory capital is aimed at filling that need. Presumably a company which does not require cash will suffer less dilution by just issuing equity sufficient to recompense the advisory capitalist than it would be taking a VC or angel investment in order to obtain the advisory services that would be bundled with that investment.”
The above passage is excerpted from Wikipedia which gives rightful credit to Stowe Boyd for both coining the phrase ‘Advisory Capitalist’ and pioneering the area. This talk will be a recollection of how one Irish entrepreneur became an Advisory Capitalist by using his blog to publish ideas and network globally.
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