Advisor Equity: What to Offer and What to Expect in Return

Advisors can be genuinely valuable — introductions that change your trajectory, pattern recognition from people who've seen this before, credibility that helps you close a deal. Or they can be a feel-good exchange where you give away equity for a few pleasant coffees. The difference is almost entirely in how you structure the relationship before you start.

What Advisors Actually Do (and Don't Do)

The honest reality is that most advisors are busy with their own things and will give you 1-4 hours per month of their actual attention. A good advisor in that time can:

• Make targeted introductions to customers, partners, or investors
• Give feedback on a deck, product, or strategy when you bring a specific ask
• Share pattern recognition ("I've seen this problem before, here's what happened")
• Be a reference for fundraising or enterprise sales

What they typically don't do: proactively think about your company, show up to meetings regularly without prompting, or do any execution-level work. If you need someone in the trenches, you need a hire, not an advisor.

Typical Equity Ranges

Advisor equity in early-stage startups typically falls in this range:

| Stage | Equity Range | |---|---| | Pre-seed / idea stage | 0.25% – 1.0% | | Seed | 0.1% – 0.5% | | Series A+ | 0.1% – 0.25% |

The range varies based on: how well-known the advisor is, how directly relevant their network and experience are, and how much time they're genuinely committing.

Be skeptical of any advisor asking for more than 1% at an early stage unless they're deeply embedded in the business (essentially a part-time executive). That's co-founder territory, not advisor territory.

The FAST Agreement

The Founder/Advisor Standard Template (FAST) from the Founder Institute is the standard legal framework for advisor relationships. It's free, founder-friendly, and widely recognized. Use it.

The FAST agreement covers:

• The equity grant and vesting schedule
• The services expected (in general terms)
• Confidentiality
• Termination conditions

Standard FAST vesting is 2 years with no cliff for advisors, reflecting the shorter time horizon of most advisory relationships compared to employees.

What to Look for in an Advisor

Not everyone with an impressive resume makes a good advisor. Look for:

Specific, relevant experience. The best advisors have done exactly what you're trying to do — or have deep expertise in a specific area where you have a gap (enterprise sales, regulatory navigation, hiring engineers, etc.). Generalists who've "seen a lot of startups" are less useful than specialists.

Genuine network access. Before signing anything, ask them to make one introduction as a test of whether the relationship will work. A good advisor will do it readily. A bad one will hedge.

Availability and responsiveness. How long does it take them to respond to an email? If you can't get a reply in 48 hours before you've given them equity, you won't get one after.

No conflicts of interest. Check whether they advise competitors or have financial relationships that could create conflicting incentives.

Structuring the Relationship to Get Value

Most advisory relationships underdeliver because nobody ever set clear expectations. Fix this upfront.

At the start:

• Agree on the format (monthly calls, async Slack, in-person quarterly?)
• Write down two or three specific things you want their help with in the next six months
• Agree on how you'll know if the relationship is working

Ongoing:

• Send a short monthly update with specific asks — don't make them guess where they can help
• Bring concrete problems, not general questions. "I have three warm intros to enterprise prospects but I don't know how to run the sales process — can we work through my approach?" is better than "I'd love your perspective on our growth."
• Hold your end: if they introduce you to someone, follow up promptly and close the loop

If it's not working: Most FAST agreements allow either party to terminate. If an advisor hasn't been useful after six months, it's better to have that conversation than to let the equity continue vesting for no return. Most advisors will respect a direct, honest conversation.

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The founders who get the most from advisors treat the relationship as a collaboration, not a service. Come prepared, be specific about what you need, and reciprocate when you can. The equity is the start of the relationship, not the end of it.