Why Pro Bono Mentoring May Not Benefit Start-ups or Mentors

Pro bono mentoring—where experienced professionals provide free guidance to start-ups—is often seen as a noble endeavour. It aims to help fledgling companies/start-ups and entrepreneurs navigate the complexities of their early stages without the burden of additional costs. While the intention behind this model is rooted in goodwill, in practice, it often falls short of its goals. Across various industries and geographies, the limitations of pro bono mentoring are becoming increasingly apparent.

This is especially true in the healthcare sector, where finding a professional who understands both the intricacies of the business and the start-up ecosystem—and has a proven track record of success—is rare. The complexity is further heightened by the regulatory requirements that vary across countries. When someone like me, who has navigated these challenges and serves as a board member and advisor, offers services pro bono without any acknowledgment or return of gratitude, it devalues the expertise provided. Without a tangible exchange, the recipient may never fully appreciate the significance or impact of the mentorship.

Here’s a closer look at why pro bono mentoring, despite its good intentions, may not be the best approach for fostering start-up growth, and why a compensated model might offer more sustainable benefits.

The Pitfalls of Pro Bono Mentoring

1. Lack of Perceived Value: One of the most significant drawbacks of pro bono mentoring is the lack of perceived value associated with free advice. Start-ups that receive guidance at no cost often take it for granted and undervalue the insights provided. This lack of appreciation can lead to disregard for the mentor’s advice, even when it is crucial for their growth. From my own experience of offering pro bono services to many Atal Innovation Centres (AICs) and foundations, I found that the perceived value of my contributions diminished over time.
2. Neglect of Early Mentors: Start-ups frequently rely on initial mentors to achieve their first milestones, only to neglect these relationships once they reach a level of success. This trend is particularly evident in sectors like healthcare, where the insights of a doctor-entrepreneur can be invaluable. When these services are provided for free, they are often overlooked, and the mentor's contributions are forgotten once the start-up is established and growing.
3. Mentor Fatigue and Burnout: Mentors providing their expertise for free can experience fatigue and burnout, especially if they do not see tangible results or feel their efforts are unappreciated. Without recognition or compensation, mentors may lose motivation, which ultimately deprives start-ups of seasoned guidance that could be crucial for their success.
4. Short-Term Focus: Pro bono mentoring often encourages a short-term mindset. Without any financial commitment, start-ups may not feel fully obligated to implement the advice they receive or make necessary changes. This lack of commitment can result in a failure to realize the full potential of the mentorship, wasting valuable opportunities for growth.

The Advantages of Paid Mentorship

1. Creating Accountability: Compensation creates a sense of accountability for both parties. When start-ups pay for mentorship, they are more likely to value the guidance they receive and demonstrate a stronger commitment to implementing their mentor’s advice. In turn, mentors are motivated to deliver actionable insights and track progress over time, ensuring that both parties are invested in the success of the relationship.
2. Fair Compensation: Paid mentorship ensures that mentors are fairly compensated for their time, expertise, and efforts. This fosters a respectful and sustainable relationship, where mentors are motivated to provide high-quality advice and consistent support.
3. Alignment of Interests: Financial transactions help align the interests of both parties. Start-ups that pay for mentorship are more invested in achieving positive outcomes, while compensated mentors are more dedicated to helping their clients succeed. This alignment fosters a mutually beneficial relationship and enhances the likelihood of long-term success.
4. Sustainable Relationships: Paid mentorship encourages long-term commitment from both sides. Start-ups that value mentorship enough to pay for it are more likely to maintain an ongoing relationship with their mentors, benefiting from continued guidance and support as they grow.

The Situation in the U.S.: Moving Away from Pro Bono Mentoring

In the U.S., where the start-up ecosystem is highly competitive, there has been a shift away from pro bono mentoring toward more structured and compensated models. While free mentoring does exist, particularly through non-profit organizations, community programs, and CSR initiatives, it is increasingly seen as less effective in structured environments.

1. Value Exchange: In the U.S., start-ups and mentors alike understand the importance of a balanced value exchange. Start-ups often pay for mentorship through cash, equity, or a combination of both, ensuring that the mentor’s contributions are appreciated and their advice taken seriously. This model promotes accountability and respect, which are essential for meaningful mentoring relationships.
2. Motivating Mentors to Contribute: Without a direct incentive, very few individuals are willing to provide long-term, meaningful mentorship. Compensation, whether through equity or fees, motivates mentors to remain engaged, invested, and committed to their mentee's success. This incentivized structure leads to a more sustainable mentorship ecosystem, where both parties benefit.

My Personal Experience: A Shift from Pro Bono to Paid Mentorship

Over the years, I offered my services pro bono, particularly to many AICs and foundations, believing that my expertise could help guide start-ups toward success. However, I realised that without compensation, the value of my advice was often underestimated, and the engagement from the start-ups was less than ideal. I experienced first-hand the limitations of pro bono mentoring and recognized that for mentorship, especially in healthcare, to be truly effective, it must be a paid engagement acceptable to both sides. Paid mentorship ensures that the guidance provided is valued, respected, and most importantly, acted upon.

Conclusion: A Call for Sustainable Mentorship

While the intention behind pro bono mentoring is commendable, its effectiveness is often compromised by a lack of perceived value and commitment from start-ups. Paid mentorship fosters accountability, fair compensation, and alignment of interests, leading to more meaningful and sustainable relationships. By recognising the importance of compensating mentors for their expertise, start-ups can ensure they receive the guidance they need while building respectful, mutually beneficial partnerships.

For mentorship to be truly effective, it must be recognized as an investment—one that is worth the time, effort, and expertise of both parties involved. Moving away from pro bono mentoring toward a compensated model will ultimately lead to stronger, more impactful relationships and a more vibrant, dynamic start-up ecosystem.