Shelf Space: The CPG Advisor Conundrum: Great Fit, Wrong Expectations

It sounds simple enough: a CPG (consumer packaged goods) startup wants to grow its retail footprint, and engaging an industry advisor seems like the answer. And the founder thinks they've identified just the right advisor for the job. The advisor says they love the startup. They believe in the product. They're convinced that they can help the founder's baby scale into a full-grown exit.

A match made in heaven — until they talk numbers.

The advisor is guided by a desire to own a meaningful piece. For argument's sake, they want 5%. They promise the world. They've been told: "don't undervalue what you do."

The CPG founder is guided by sound principles. They're thinking of giving a quarter-point — maybe a half. They point to data, saying only 10% of pre-seed advisors received 1% or more in equity in the last year.¹ They've been told: "in no world should any advisor get 5%."