Advisor Equity Cheatsheet for Startup Founders by Stage

Advisor Equity Cheatsheet for Startup Founders by Stage

Author

Peter Walker

|

Read time: 

1 minute

Published date: 

September 15, 2023

Pre-seed advisors: 0.23% median. Seed: 0.10%. Series A: 0.07%. All declining year over year—the data that founders need to set fair expectations before any...

LinkedIn: Advisor Equity Cheatsheet for Startup Founders by Stage

Startup founders: here's a cheatsheet for giving out equity to advisors.

The key numbers for each stage are:

Pre-Seed

  • The median advisor received 0.23% of company equity (the FAST agreement default is .25%, implying there are a number of smaller equity grants happening now)

Seed

  • Median was 0.10% this year so far, down from 0.13% last year

Series A

  • Median was 0.07%, flat from 2022

Altogether, it looks like founders have continued to value advisors in much the same manner as the prior 12 months. And there are a LOT of advisors on cap tables these days - the dataset looked at over 20,000 individuals who qualified under the "advisor" label in just these three initial stages.

The fact that grants are by and large flat from last year is interesting given the increased scrutiny many founders are applying to their equity pools these days.

As fundraising has slowed, conserving the equity pool has become a higher priority - but it looks as though advisors still bring enough value to warrant healthy equity grants in the eyes of most founders.

Last note - always have a vesting schedule on these advisor grants. The typical advisor schedule we're seeing right now is 2 years with a 3-month cliff, but there are a number of schedules that may make sense for your business.

Big compensation report out on Tuesday, happy advising this weekend!

#cartadata #advisors #equity #Seed #SeriesA #PreSeed #founders

Peter Walker
Author: Peter Walker
Peter Walker runs the Insights team at Carta, focused on discovering key data and narratives across the private capital ecosystem. In a former life, he was a marketing executive for a media analytics startup and led the data visualization team at the Covid Tracking Project.

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