How much equity should advisors get?
There is no universal number. Early advisors may receive more than later advisors because the company is riskier and the value of help can be higher. The right amount depends on stage, expected time commitment, reputation, scope, and whether the advisor is opening doors or merely standing near them.
What should be documented?
- Advisor agreement: Scope, time commitment, confidentiality, IP assignment, and termination rights.
- Equity grant: Type of equity, vesting schedule, exercise terms, and board approval.
- Vesting: Advisor equity should usually vest over time, often monthly.
- Conflicts: Advisors connected to investors, customers, or competitors may need extra care.
- Securities compliance: Equity grants need to fit within applicable exemption and plan rules.
Founder mistakes to avoid
Do not grant equity before defining the work. Do not forget vesting. Do not promise percentages casually in email. Do not give the same economics to someone making one intro and someone spending six months helping close enterprise design partners. The cap table remembers everything, including your most optimistic texts.
Using advisors strategically?
Nebo Legal helps startups structure advisor agreements, equity grants, vesting, IP assignment, and board approvals.
Book a callFAQ
Should advisor equity vest?
Usually, yes. Vesting aligns equity with actual contribution over time.
Can advisors receive options?
Often, yes, depending on the equity plan, advisor status, and applicable rules.
Alex Ravski is the founder of Nebo Legal, P.C., a former Foley & Lardner attorney advising startups on formation, financing, and cross-border deals.