Advisory Shares
Definition
Advisory shares are equity granted to startup advisors in exchange for guidance, connections, or credibility, typically 0.1 to 1 percent vesting over one to two years.
How it comes up in fundraising
Founders use small advisory grants to formalize relationships with experienced operators or domain experts who help without joining full-time.
Frequently asked questions
How much equity should an advisor get?
Common ranges run 0.1 to 0.5 percent for occasional advice and up to 1 percent for deeply involved advisors, usually with a vesting schedule and no cliff or a short one.
Do advisory shares dilute founders?
Yes, like any equity grant. They usually come from the option pool, so budget them alongside employee grants.
Related terms
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