Advisory capital
Very interesting article from Stowe Boyd about advisory capital, the consulting analogue to venture capital.
A consultant is unlikely to want to part with a strategic concept that could make a client into a $100M player, potentially, in exchange for a per diem and the possibility of some downstream consulting, maybe, if you’re lucky. And the best results may not come from a few days of consulting, but a long-term strategic involvement, like venture capitalists typically make in their portfolio companies, the expense of which small companies have historically been unwilling to take on.
What I think is needed is a fusion of the best of both the venture capital and advisory board models. I call this Advisory Capital:
I do a lot of informal consulting to friends and nonprofits; this may be a model that can really support that as a profession.
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