Equity for Advisors


I've identified a veteran CTO of several successful web and tech companies who I'd like to be the first Advisor to my web-based startup. He could help me with operations, as well as business strategy. He has had extensive experience as an advisor to other startups.

From reading other responses on this site, it's not clear to me what kind of equity I should offer him. One response said 0.1% for about 10 hrs of phone calls per quarter. Is this the minimum? What's a reasonable max, and is there an average? And, what are the negotiation points?


Advisors Equity

asked Nov 4 '10 at 14:06
16 points
Get up to $750K in working capital to finance your business: Clarify Capital Business Loans

1 Answer


Everything is negotiable but if you don't have a good relationship. he won't be much use as an advisor.

Whether you know this guy already for not, take him out for lunch, start building a relationship and try to get him interested in your idea. If he's interested and has the right experience, he'll be a great advisor. You can later sit down and have a conversation about terms.

If he's not into your idea, it doesn't really matter what terms you try to negotiate, you probably won't get what you need from him.

In summary, start with the relationship and his interest and what he can contribute (if he is willing) Once you have cleared this hurdle, then worry about terms.

answered Nov 4 '10 at 19:23
Susan Jones
4,128 points
  • Great points about sitting down first. Heck the guy may give some valuable advice out for free. – John Bogrand 13 years ago
  • Thanks for the comments. I left out that I have known him for a while, and he is very interested in the idea. – User4979 13 years ago
  • Then absolutely sit down with him and ask for his advice. Then ask him what you can do for him. His answer may surprise you. – Susan Jones 13 years ago

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Advisors Equity