How much equity should you give a startup advisor?

The standard range is 0.2% to 1% vesting over two years. A typical subject-matter expert might get 0.2-0.5%, while a world-renowned figure who brings immense credibility might command 0.5%-1% or more.

What is a standard advisor vesting schedule?

The most common vesting schedule for advisors is 24 months (2 years) with a 3 or 6-month cliff. If you part ways during the cliff period, they receive no equity, protecting the company.

What is the difference between an advisor and a mentor?

Advisors are formal, compensated roles with specific expectations and time commitments, typically paid in equity. Mentors are informal, uncompensated sounding boards for high-level guidance and emotional support.

Do you need a formal contract for an advisor?

Yes, always. Use a standardized agreement like the Founder Institute's FAST Agreement to formalize the equity grant, vesting schedule, time commitment, and IP assignment. This prevents future disputes.

How much equity should you give a startup advisor?

The standard range is 0.2% to 1% vesting over two years. A typical subject-matter expert might get 0.2-0.5%, while a world-renowned figure who brings immense credibility might command 0.5%-1% or more.

What is a standard advisor vesting schedule?

The most common vesting schedule for advisors is 24 months (2 years) with a 3 or 6-month cliff. If you part ways during the cliff period, they receive no equity, protecting the company.

What is the difference between an advisor and a mentor?

Advisors are formal, compensated roles with specific expectations and time commitments, typically paid in equity. Mentors are informal, uncompensated sounding boards for high-level guidance and emotional support.

Do you need a formal contract for an advisor?

Yes, always. Use a standardized agreement like the Founder Institute's FAST Agreement to formalize the equity grant, vesting schedule, time commitment, and IP assignment. This prevents future disputes.

How to Build a Startup Advisory Board: A Founder's Guide

A tactical guide for founders on finding, recruiting, and compensating advisors who deliver real value.

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How to Build a Startup Advisory Board

Stop collecting logos. This guide provides the tactical steps for finding, vetting, and recruiting advisors who will actually help you build your business—from equity benchmarks to the email scripts that work.

TL;DR: Stop confusing informal mentors with formal, compensated advisors. A true advisory board consists of 1-3 experts recruited to solve specific business problems. Compensate them with 0.2%-1% equity on a 2-year vesting schedule, and manage them rigorously to get real value.

Key takeaways

Distinguish between informal mentors and formal, compensated advisors.
Define the top 1-2 gaps that threaten your business before seeking advisors.
Offer advisors 0.2% to 1% in equity, vesting over 2 years with a 3-6 month cliff.
Always audition an advisor by asking them to solve a real problem before you make the formal 'ask'.
Use the vesting cliff to "fire" unhelpful advisors and protect your equity.
Manage advisors proactively with monthly updates and specific, actionable requests.

Advisors Aren't Mentors

Let's get one thing straight: a mentor is not an advisor. Using the terms interchangeably is a critical error that leads to misaligned expectations and wasted time.

Mentors are informal sounding boards. You might talk to them once a quarter. They give encouragement and high-level career advice. The relationship is unstructured, uncompensated, and valuable for founder psychology. You should have mentors.

Advisors are formal, compensated, tactical partners. You recruit them to fill a specific gap on your founding team and achieve a concrete business objective. They commit to a regular time investment (e.g., 2-4 hours a month) in exchange for equity. An advisor is on your team.

If you need help managing the emotional whiplash of being a founder, find a mentor. If you need a repeatable go-to-market strategy for enterprise sales, you need to recruit an advisor.

First, Define the Job: What Is an Advisor For?

Before you chase a big name, you need a precise job description. Don't just say you need "help with marketing." Ask yourself: "What is the single biggest operational gap that could kill this company in the next 9 months?" The answer is your hiring mandate.

Your advisory board should be small—typically 1 to 3 people at the pre-seed/seed stage. Each one should have a clear job title and mandate. Common roles include:

The Fundraising Advisor: This person has deep connections to VCs and institutional capital. Their job is to help you build your target investor list, refine your pitch, and secure 3-5 high-quality warm introductions when it's time to raise your next round.
The GTM/Sales Advisor: This person has built a sales or marketing motion like the one you need. Their job is to review your funnel, critique your sales deck, help you hire your first salesperson, and navigate the procurement process of your target customers.
The Technical/Product Advisor: This is a senior engineer or product leader who has scaled a system past your current breaking point. Their job is to review your architecture, advise on your product roadmap, and help you avoid catastrophic technical debt.

Advisor Compensation: The Equity Standard

Advisors are paid in equity, not cash. Giving away slices of your company should be treated as seriously as a key hire. Every grant to an advisor comes from the same option pool you use for your first 10 employees.

Continue reading the full guide