Advisors
We don’t recommend bringing on external advisors except for project authors and key maintainers. People in both the startup and open source communities often just want to be helpful, without requiring compensation as a formal advisor.
Make project author/maintainer advisors
If you are not the original author or maintainer of the open source project, we strongly recommend making them an advisor. Their involvement promotes community trust, endorsement, and smoother collaboration (e.g., PRs, roadmapping). Even with limited availability, their influence, credibility, and connection to the community are high-value assets.
Domain experts and contributors
In rare cases, it may make sense to bring on a non-author advisor who offers material support to the business.
Example contributions:
Reviewing or vetting technical candidates
Making customer introductions or opening sales channels
Offering visibility and credibility in the OSS community
If you think there’s a need to meet with somebody on a regular basis where it would be fair to compensate them, discuss in office hours.
Advisor compensation
Formal advisors typically receive equity in the company to compensate for their time and effort.
Advisor compensation and scope of services should be outlined clearly in the Advisor Agreement. Standard advisor agreements can be found in the Company’s drive under the Toolkit folder, which can be adapted as needed.
Depending on the advisor’s level of active contribution (i.e., introductions to talent pool, target customers, etc.), time commitment, and stage of the business, equity allocation can range from 0.15% to 1.00%. An example based on time commitment: between 0.1% (quarterly) and 0.25% (monthly), and up to 0.5% if weekly meetings. OCV recommends 4-year vesting (48 months), with a six-month cliff.
Founder-Advisor Standard Template
Advisor equity compensation is based on the advisor's commitment and performance. Advisors need to fulfill both the time commitments and actions associated with their performance level. Use the Founder Institute’s Founder Advisor Standard Template (FAST) to generate a document for signature.
5 hours/mo
Attend quarterly strategy meetings and scheduled Advisory Board meetings
Reasonable to email
Actively introduce to general contacts in the network
Forward materials at the company's request
0.25% for Idea stage
0.20% for Startup stage
0.15% for Growth stage
10 hours/mo
Attend monthly strategy meetings, scheduled Advisory Board meetings, and at least one meeting with partners, customers, vendors, or employees
Quick to email for those in or associated with company
Actively introduce to general contacts in network
Forward materials at company request
Assist in finding team members and employees
0.50% for Idea stage
0.40% for Startup stage
0.30% for Growth stage
20 hours/mo
Attend bi-monthly strategy meetings, scheduled Advisory Board meetings, project-related meetings, and meetings with partners, customers, vendors, and employees
Quick to email or phone for those in or associated with company
Actively introduce to general contacts in network
Forward materials at company request
Make key introductions to partners, customers, vendors, and employees and join meetings
Assist on at least one strategic project
1.00% for Idea stage
0.80% for Startup stage
0.60% for Growth stage
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