Most early-stage advisors receive somewhere between 0.1% and 1% of the company, vesting over one to two years with a three to six month cliff, though the right number depends on stage, involvement and what the advisor actually brings. This article walks through the real ranges, what drives them, and how to structure the grant so it rewards advising rather than a single introduction. It does not repeat the general checklist in our advisory agreement guide, which covers what the document should contain rather than how much to offer.
> Quick answer: Typical advisor equity sits between 0.1% and 1%, vesting monthly over one to two years with a three to six month cliff. The figure moves with expected hours, the value of the advisor's network or expertise, and company stage. Fee arrangements are common where equity is not appropriate. Whatever you agree, write it down and attach vesting, because a verbal promise of "a bit of equity" is the single most common source of cap table confusion at the next raise.
What actually drives the number
Founders often ask for a benchmark and expect a single figure, but advisor equity moves on a handful of concrete variables rather than a fixed table. Expected time commitment matters most. An advisor giving genuinely a few hours a month sits at the low end, while someone joining monthly calls, making warm introductions, and reviewing strategy sits higher. Seniority and reputation matter too. A well-known operator or investor lends credibility that a junior advisor cannot, and the market prices that credibility into the grant.
Company stage changes the maths as well. A pre-seed company with almost no value to point to often grants a slightly larger percentage because the absolute value is still small, while a company that has already raised a priced round grants a smaller percentage of a bigger pie. None of this is a formula you can plug numbers into and trust blindly. It is a negotiation anchored by comparable deals, and the FAST agreement standard published by a well known startup accelerator is a common reference point many founders use as a starting anchor, precisely because it sets out typical ranges by stage and involvement level.
Equity or a fee, and why the choice matters
Not every advisor should be paid in equity. A fee makes more sense where the advisor wants certainty rather than a bet on the company's outcome, where the engagement is short and transactional, such as a single piece of technical review, or where the company would rather conserve equity for hires and future advisors. Equity makes more sense where the advisor is genuinely invested in the outcome over a longer period and where cash is tight, which is the more common early-stage picture.
Some companies split the difference, offering a small fee for defined deliverables alongside a modest equity stake for ongoing engagement. Whichever route you choose, put the choice in writing in the same document that defines the role, because an advisor who is unclear on whether they are owed cash, equity, or both is an advisor who will eventually ask, usually at an inconvenient moment.
Vesting and the cliff, not just the headline percentage
The percentage gets the attention, but the vesting schedule decides whether that percentage was ever earned. Reverse-vesting equivalents for advisors typically run monthly over one to two years, shorter than the four-year schedule common for founders and employees, because an advisory relationship is expected to be shorter and less binding. A cliff, commonly three to six months, means no equity vests at all if the advisor leaves before that point, which protects the company from an advisor who disappears after month one having already banked a slice of the cap table.
Skip the cliff and you accept the risk that a single afternoon of advice ends up looking, on paper, identical to a year of steady input. Skip vesting altogether and you hand over the full grant on day one with no mechanism to claw it back if the relationship never delivers, which is exactly the dead equity problem covered in our companion piece on what happens when an advisor stops turning up.
Hours expected, and what "advisor" should actually mean
A grant of any size should be tied to a stated commitment, even a loose one. Two to four hours a month is a common baseline for a light-touch advisor, rising for someone who takes board observer status, chairs an advisory council, or is expected to make specific introductions within a defined window. Write the expectation into the agreement in plain terms, not as a vague "provide guidance from time to time." Vague scope is where advisory relationships quietly fade, and a document that says nothing concrete about time gives you nothing concrete to point to if the relationship stops delivering.
If the advisor's real value is a handful of introductions rather than ongoing counsel, consider whether equity is the right instrument at all. A finder's fee, a small flat fee, or equity gated behind specific milestones, an introduction that converts to a signed customer or a completed round, can align the reward with the actual contribution far better than an open-ended monthly vest.
Advisor equity at a glance
| Factor | Typical range or approach |
|---|---|
| Equity grant | 0.1% to 1% of fully diluted equity |
| Vesting period | 1 to 2 years, monthly vesting |
| Cliff | 3 to 6 months, no vesting before it |
| Time expected | Roughly 2 to 4 hours a month for a light-touch role, more for board-level involvement |
| Alternative | Fixed fee, milestone-gated equity, or a mix of both |
Putting it in writing, and keeping it in one place
None of the above matters if the terms live only in an email thread or a founder's memory. Our walkthrough on drafting an advisory agreement with AI covers assembling the equity percentage, vesting schedule and cliff into the document itself, then sending it for signature rather than treating the numbers as a handshake to formalise later. Once signed, keep the document where the cap table and the diligence pack will eventually need it, because an investor working through a due diligence request list checks advisor grants against what actually vested, not what was promised.
99 Data Rooms assembles the advisory agreement from vetted England and Wales clauses through AI Legal Drafting, a live feature that selects existing clause wording rather than generating new legal language, the difference that matters between assembled and invented clauses, and it is a starting point rather than a substitute for review on anything with real equity attached. Once drafted, send it for e-signature in the browser: electronic signatures are admissible for most commercial documents in England and Wales, with exceptions including deeds, wills, land transfers and lasting powers of attorney, so an advisory agreement signs cleanly this way. Track advisor engagement in the same rooms where the rest of the company's sensitive documents live, with page-by-page analytics showing whether the advisor actually opened and read the terms before signing.
If your advisor's agreement has a renewal option after the first term, note the date somewhere that actually reminds you. Our guide on missing a contract renewal date covers the mechanics of tracking that without relying on a founder's memory a year later.
This article is written for England and Wales, where the FAST agreement conventions and typical vesting practice described above are commonly used. If you are advising or being advised from another jurisdiction, the statutory detail will differ, but the underlying questions, how much, vesting over what period, cliff or no cliff, equity or fee, are the same checklist to hold your own template against.
Frequently asked questions
What percentage equity should a startup advisor get?
Most advisors receive between 0.1% and 1% of fully diluted equity, with the figure driven by expected time commitment, seniority, and company stage rather than a fixed rule. A light-touch advisor giving a few hours a month sits at the low end. A named operator taking on board-level involvement sits higher.
Should advisor equity vest?
Yes. Nearly all advisor grants vest over time, commonly monthly across one to two years, with a cliff of three to six months before any equity vests at all. Vesting ties the reward to ongoing engagement rather than handing over the full stake on day one.
Can you pay an advisor cash instead of equity?
Yes, a fixed fee is common, particularly for short, defined engagements or where the company wants to preserve equity. Some arrangements combine a modest fee for specific deliverables with a smaller equity stake for ongoing input.
What happens if an advisor equity grant has no vesting schedule?
The full grant is effectively locked in from day one, regardless of how long the advisor actually stays engaged. That creates the dead equity problem discussed in our companion article on when an advisor stops turning up, and it is one of the first things an investor questions in diligence.
Does advisor equity need a written agreement?
Yes. A verbal understanding is difficult to enforce and creates ambiguity that surfaces exactly when it is least convenient, usually at the next funding round. A written advisory agreement records the percentage, the vesting schedule, the cliff and the role itself, and it is the document an investor expects to see.
Draft your advisory agreement with AI
Assemble an advisory agreement with the equity percentage, vesting schedule and cliff stated plainly, drafted from vetted England and Wales clauses and signed in the same place you drafted it. The free tier gives you three rooms and twenty-five active links, forever, with no card required; the AI drafter and e-signature start on Pro at £19 a month. Start for free and put the advisor equity conversation on paper before it becomes a cap table problem.
This article is general information, not legal advice. Advisor equity involves both company law and tax considerations, and anything with real value attached deserves review by a qualified adviser before you rely on it.
Sources
- Employment status and the boundary that keeps an advisor outside employment: gov.uk, Employment status, https://www.gov.uk/employment-status
- Electronic signatures, validity and exceptions including deeds, wills, land transfers and lasting powers of attorney: Law Commission, Electronic execution of documents (2019), https://lawcom.gov.uk/project/electronic-execution-of-documents/ ; HM Land Registry Practice Guide 82, https://www.gov.uk/government/publications/electronic-signatures-accepted-by-hm-land-registry-pg82