Equity for someone I think is a great advisor?
Shared by NFT-gal · 113d ago · 6 comments

How should I think about giving equity for an advisor that wants to be involved in the project? The company is so small now, so it feels like I'm giving nothing. But I feel like maybe the incentive isn't matched, because there's no way for me to know how much they'll actually put into the business.

lorenwinzeler · 110d ago

does anyone have an advisory agreement template?

NFT-gal · 110d ago

Sadly not. if you find one, let me know. I haven't heard of one used before, actually, until now. At the very least get it in an official back and forth email, I suppose.

GrowthChannel.io · 111d ago

I would not suggest giving any advisor more than 1% equity unless they're actually working on your project at least part-time. Even for that 1%, make sure you have a lit of actions they're willing to commit (i.e. share your content on their social networks, represent you at the industry events, make industry introductions, etc.). On another note, make sure all that is vested over a period of time. Just like Manoj suggested, there are plenty of templates you can use to guide you there. Good luck!

NFT-gal · 111d ago

I see, that all makes sense thank you! 1% does seems exorbitantly high. Have an engineer now working part-time on the project and they're getting 1%, vesting over a period of time.

Just for the thought experiment... who would be your #1 ideal advisors?

manojranaweera · 113d ago

Remember, equity needs to be earned. Just like giving equity to co-founders who joined later, make sure these are also vested over a period. Don't give them at the start.

There have been many times tech founders wanting to give me equity to be part of https://techcelerate.ventures, but I have refused to take advantage of them. We just charge an annual membership fee.

There are well-documented resources out there that highlights the percentages. Good luck.

NFT-gal · 111d ago

Thank you! Sound advice.