CHAT / IITM ENTREPRENEURS

How should a startup structure advisor equity?

How should a startup structure advisor equity?

How should a startup structure advisor equity?

Amrit Vatsa

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An August 2026 question concerned advisors for a pre-product startup, with shares proposed for both ongoing involvement and achievements such as fundraising or partnership closures. Responses were cautious. Members described experiences with advisors who expected equity without taking responsibility for outcomes, and questioned whether more groundwork could remove the need for an advisor altogether.

Vesting, outcome-linked arrangements, founder shares and ESOPs were discussed, but no universally suitable structure emerged. The clearest takeaway was to specify the contribution first: time, expertise, introductions or defined deliverables. Occasional advice and sustained operating support are different commitments; the equity arrangement needs to reflect that difference.

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