What is an Advisory Share
Here's how to think about it — and how Lovie makes the decision easier.
Model this decision inside Lovie's free cap table tools before you commit.
If you're a founder trying to understand what is an advisory share, you're not alone — it's one of the most searched equity questions among early-stage teams. In short, advisor equity touches nearly every cap table decision you'll make this year, from advisory equity grant to how you structure advisor grant. Getting the mechanics right now avoids expensive cleanup later — especially once investors, advisors, and employees are all counting on the same numbers.
Understanding Advisor equity
At its core, an advisory share is about keeping ownership, dilution, and paperwork consistent as your company grows. Founders typically run into this when comparing advisory equity grant against their existing structure, or when an investor asks a question they weren't prepared for.
How Advisor grant Fits Into Your Cap Table
Most guidance treats an advisory share as an isolated topic — but it never lives in isolation on a real cap table. Advisor equity percentage and advisory equity vesting both depend on the same underlying share count and valuation assumptions, so a mistake here quietly breaks numbers elsewhere. This is exactly why Lovie Cap Table Management treats these fields as connected, not separate spreadsheets.
Quick Reference: Advisor equity at a Glance
| Factor | What Founders Should Check | Why It Matters |
|---|---|---|
| Advisory equity grant | Confirm it's documented at grant/issue time | Avoids disputes at your next round |
| Advisor equity percentage | Review with your cap table, not in isolation | Keeps dilution math accurate |
| Advisory equity vesting | Revisit before every funding round | Prevents surprises for investors |
Frequently Asked Questions
How much equity should I give my advisors?
It depends on your current cap table and how advisory equity grant was documented when it was granted. Founders who track this in real time avoid renegotiating terms later.
- Confirm advisory equity grant against your latest cap table, not an old spreadsheet
- Get advisor grant in writing before it affects a funding round
- Re-check this every time you issue new equity
What is a typical advisory equity grant?
An advisory share is rarely a fixed number — it shifts as you issue new equity. The safest approach is checking it against a live cap table rather than a static spreadsheet.
- Confirm advisor equity percentage against your latest cap table, not an old spreadsheet
- Get advisory equity vesting in writing before it affects a funding round
- Re-check this every time you issue new equity
The Lovie Advantage
Founders often overlook advisors in cap table. Lovie: "Set aside advisor pool during formation—see impact on cap table now." Interactive: "Grant 0.25% to advisor X—watch your ownership % update." Automation + education. In practice, that means founders researching what is an advisory share don't have to bounce between a formation lawyer, a spreadsheet, and a separate equity tool just to get a straight answer. Lovie Cap Table Management keeps advisor equity tied directly to your formation documents, so the numbers you see are the numbers that are actually true.
For a related decision founders often face right after this one, see What is a Stock Warrant.
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