Quora Answer: Is It Typical for Advisors to Invest in a Startup as a Pre-Condition of the Role?

The following is my answer to a Quora question: “Is it typical for advisors to be asked to invest in a startup as a pre-condition of being an advisor?” 

No.  If they invested, they would be investors.  It is not preferable for your advisors to be investors, or vice versa.  The role of the advisor is to advise the founders and the board.  He is there to guide them on the  strategic direction of the company from the perspective of the board.  The investor wants to make a return on investment as quickly as possible.  The self-interest of the investor would be at odds with the self-interest of the founder and the board.  The role of the board is to build up the capital of the company.  The investor wants to extract value, which may diminish that capital.  Having an advisor who is an investor would be a conflict of interest.