Advisory Shares

A small equity grant, typically a fraction of a percent, given to an advisor for their ongoing help, usually vesting over a year or two.

Why it matters

Advisory shares align an advisor's incentives with the company at little cash cost, but they add up on the cap table if handed out loosely. Reserving them for advisors who genuinely move the needle keeps the equity meaningful.

For example

A well-known industry advisor is granted 0.25 percent in advisory shares, vesting over two years, in exchange for monthly guidance and introductions.

Related terms

Startup Advisor Sweat Equity Vesting

Go deeper

See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.

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