Advisory Shares: A Guide for Startups and Advisors In the fast-paced world of startups, securing the right advisors can be a game-changer. These experienced individuals offer invaluable guidance, connections, and industry knowledge that can propel a young company forward. But with limited cash flow, attracting top advisors can be challenging. Enter advisory shares, a form of equity compensation that provides a mutually beneficial solution. What Are Advisory Shares? Advisory shares are a type of equity compensation offered by startups to their advisors in lieu of, or alongside, a traditional cash fee. These shares represent ownership in the company, granting the advisor a stake in its future success. There are two main types of advisory shares: Stock Options: These give the advisor the right to buy a specific number of shares at a predetermined price within a set timeframe. This allows the advisor to benefit from potential share price appreciation if the company performs well. Restric