How Much Equity Should Advisors Get?

Advisors can bring critical knowledge, connections, and credibility to your startup. But giving too much equity too early — especially without performance expectations — is a costly mistake. Keep it lean, tied to value, and always under vesting.

Why it Matters

Advisors can open doors and help avoid mistakes — but most are not active enough to deserve major ownership.

Equity should be reserved for those who create long-term value. Giving it away too freely makes follow-on hires harder and creates deadweight on your cap table.

Founders Checklist

Use standard ranges: 0.1%–0.5% for early-stage advisors
Put them on a vesting schedule (usually 2 years, no cliff)
Consider an Advisor Agreement that outlines expectations
Don’t give equity just because someone asks
Track advisor equity on your cap table just like employees

Founder Fails

Giving 1%+ to someone who joins a few calls
No written agreement
Letting advisors act like board members without oversight
Failing to track vesting and performance
Promising “founder-level” equity without negotiation

When to ask for Help

You’re unsure how to evaluate the value of an advisor
You’re getting equity requests from early supporters or friends
You want to draft an Advisor Agreement or set clear expectations
You’re debating board access or high-impact roles for advisors
You want to benchmark standard equity packages by stage and role

Frequently Asked Questions

Q: Can we just pay advisors in cash?
A: Yes — if you can afford it. But early-stage startups often use equity when cash is tight.

Q: Should we give a board seat to an advisor?
A: No. Board seats come with fiduciary duties and control. Most advisors should not be board members.

Q: What if they stop helping after a few months?
A: That’s why you use vesting — they only earn equity if they stay engaged.