Stages 1-2 (pre-seed and seed through Series A)
Keep advisor equity inside market bands
A founder at S1 or S2 granting advisor equity must decide how much to give because oversized grants get clawed back and signal inexperience.
Options
Grant a tenth to half a percent to typical advisors
Grant up to one percent to a heavy hitter
Grant more than one to two percent on request
What mattered
- Investors correct oversized grants through clawbacks
- One to two year vesting with a re-grant option keeps alignment
- Pay tied to fundraising success can be illegal
What was done
The sessions concluded founders should keep advisor grants in band, vest them over one to two years, and compensate for services rather than for capital raised.
ClaimAn advisor asking for more than one to two percent is signaling a lack of startup experience.
FAQ
- Which stage does this apply to?
- Stages 1-2 (pre-seed and seed through Series A).
- Where does this come from?
- Synthesized from FounderNexus founder sessions, with speakers abstracted.
FounderNexus convenes stage-matched founder groups around decisions like this one.