Startups often form advisory boards composed of advisors with knowledge and experience in the startup's industry. These advisors are typically compensated with modest equity grants in exchange for their service to the startup. The advisory board is distinct from the company's board of directors, which is tasked with managing the company. The advisory board has no authority to make decisions on behalf of the company.
Guiding the way for early-stage startup founders, advisors bring value and wisdom to the table. Understand the norms of advisor equity issuance and how to do it right.