4 Questions You Should Ask Before Becoming An Advisor
We have seen a trend of professional athletes getting into the VC space whether it be as an investor, ambassador, or advisor. Lebron James, Kevin Durant, Paul Rabil, Kelvin Beachum Jr amongst others are leading the space when it comes to VC investing.
Everyone wants to follow suit and invest like the trendsetting athletes but it’s important to understand that before joining in a company you have to know what you are bringing to the table. You can’t just invest in companies just because you have capital and relationships, you have to ask yourself questions to know if it’s a good fit for your investment criteria.
Do I Add Value
What can I bring to the table? If I come on board, will I make the company better? Will I be a fly on the wall when it comes to meetings or will I be able to provide different insight outside of my popularity and capital?
As professional athletes, you have to know how you are valuable to the company you are investing in. This will gauge how much capital or time you want to devote to the company and help you decipher between the amount of deal flow that comes your way. If you feel invested in a company you are naturally willing to do more.
For example, Aaron Rodgers, Russell Wilson, and Doug Baldwin invested in VICIS, a company which develops a high tech football helmet to increase safety. It doesn’t take a rocket scientist to understand the value three top NFL football players provide investing in a company that promotes safety in football.
Why Am I Interested
Am I trying to be the next Jason Calacanis ? What’s my objective? Do I like the monetary potential if this grows? Professional Athletes need to ask why they are truly interested in this particular company. Is the potential growth of the company and the money I can make what interest me or am I genuinely interested in this particular sector that I’m investing in.
Do I Have The Network To Help
Do you have the relationships and connections to help take the company you invested in reach new heights? Can you set up meetings with big players or get expanded media.
Your relationships as a professional athlete is important to take note of when becoming an advisor because that plays into how well you can do your role.
How Will This Affect My Reputation
You Are What Your Record Says. You don’t want to be an advisor for multiple companies that have gone belly up. Make sure you do your research and due diligence before hoping on to any and every opportunity that is presented your way.