How much equity should a startup advisor get?

Typically 0.1% to 1.0%, vesting over two years with no cliff. A standard, active advisor at the seed stage is often in the 0.25% to 0.5% range.

What's the difference between a mentor and an advisor?

A mentor provides informal advice for free. An advisor has a formal, written agreement, is compensated (usually with equity), and has defined expectations for their contribution.

How long should an advisor agreement be?

Standard advisor agreements are for a two-year term, with equity vesting monthly. This aligns their compensation with their period of active contribution.

What is a FAST Agreement?

The Founder/Advisor Standard Template (FAST) Agreement is a popular, free template for structuring advisor relationships. It standardizes the equity and vesting process to be fair for both parties.

Startup Advisors: A Founder's Guide to Equity, Engagement, and ROI

Most founders use advisors poorly. They give away precious equity for a name on a slide and get nothing back. Here's a tactical guide to finding, compensating, and managing advisors who will actually help you build your business.

TL;DR: Stop giving away equity for 'credibility.' Grant 0.1% to 1.0% based on concrete contributions, not fame. Use a trial period before any agreement, set clear expectations in writing, and actively manage your advisors to get a real return on your equity.

Key takeaways

Grant advisors 0.1% to 1.0% of equity, vested over 2 years.
Start with a 90-day 'trial project' before signing any equity agreement.
Define clear goals and a monthly time commitment in writing.
Pay for specific actions and results, not just a name on a slide.
Actively manage your advisors: send agendas and ask for specific help.
Fire underperforming advisors who become dead equity on your cap table.

A tactical guide for founders on startup advisors. Learn how much equity to grant, how to recruit them, and how to get real value instead of dead equity.

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