How Much Equity Do Startup Board Members Receive

Friday Q&A - how much equity do startup board members receive?

Quite a bit more than startup advisors, it seems (covered advisor equity earlier this week).

𝗦𝗲𝗲𝗱 𝗦𝘁𝗮𝗴𝗲 𝗕𝗼𝗮𝗿𝗱 𝗠𝗲𝗺𝗯𝗲𝗿𝘀

• 0.75% on average

• Half a percent as a median

𝗦𝗲𝗿𝗶𝗲𝘀 𝗔 𝗕𝗼𝗮𝗿𝗱

• 0.52% average

• 0.38% median

𝗦𝗲𝗿𝗶𝗲𝘀 𝗕 𝗕𝗼𝗮𝗿𝗱

• 0.38% average

• 0.28% median

Now these ranges come with a LOT of variability. We see grants well above the 75th percentile in some cases (maybe it's a famous operator, maybe they bring key industry connections, etc). We also see lower grants!

Note that these are all independent board members, not founders, company executives, or board seats held by major investors. The grants in question typically vest over the term of the board seat and do not, in most cases, come with a cliff.

Boards can be transformative for young startups with the right set of engaged members - or they can be figurehead committees with little actual influence. It's not a space I'm personally well-versed in, so would love to read perspectives below on the best ways to build and utilize boards.

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#cartadata #boardmembers #equity #boardequity #independentboard