Never Give Advisor Equity

Why Most Startup Advisors Are Worthless (and How to Avoid Them)

Unpopular opinion that might get me in trouble, but it needs to be said:
" Most startup advisors are worthless. "

Let's talk about a critical, often overlooked aspect of building a startup: advisors. We’re told they’re necessary for success, but the truth is, many are simply a waste of valuable time and equity. It's time we called out the fluff and focused on what actually moves the needle.

This isn’t about being cynical. It’s about being strategic. This is about protecting your dream, your effort, your cap table. Before you hand over a piece of your company, you must be vigilant.

Let’s break down why most advisors are worthless and, more importantly, how to find the right ones.

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The Truth: Most Advisors Fail This Simple Test

Too many advisors are happy to offer vague promises and a hefty ask (your equity), without ever demonstrating real value. It's time to raise the bar. We need a structured approach and to demand high standards.

Think you have a good advisor lined up? Put them through these rules:

1. The Time Rule: Clear Commitments Only

• Bad: "Call me when needed," "Happy to help sometime"

• Good: "Every Tuesday at 9 am."

• What to Expect:

  • Weekly scheduled calls

  • Monthly deliverables

  • Quarterly reviews

  • Annual renewal

2. The Focus Rule: Exclusive > Multiple

• Bad: Advising 20+ startups.

• Good: Good advisors work with 2-3 startups max. (Venture capitalists, on average, hold about 6 board seats, median of 4 across their portfolios.)

• Real Talk: "I advise 20+ startups" is code for "I'm not really helping any of them."

3. The Expertise Rule: Specific > General

• Bad: General startup advice

• Good: Deep, specific industry expertise

• Must haves:

  • Industry expertise

  • Recent experience

  • Technical depth

  • Market knowledge

• Real Talk: An ex-CTO of a competitor is way more valuable than a general startup advisor.

4. The Value Rule: Measure Everything

• Bad: Vague promises

• Good: Measurable impact.
  * Must deliver:

  • Revenue impact

  • Customer intros

  • Problem-solving

  • Strategic wins

• Real Talk: Demand “3 customer intros per month”, in writing.

5. The Terms Rule: Protection First

• Bad: No real commitment

• Good: Clear terms that protect you.

• Must haves:

  • 2-year vesting (to ensure long-term effort)

  • Monthly cliff (accountability for continued performance)

  • Written deliverables

  • Performance metrics (aligned expectations and trackability)

• Real Talk: No vesting = no motivation after month 1.

6. The Work Rule: Actions > Advice

• Bad: Pure advice

• Good: Hands-on work.

• Real work includes:

  • Hands-on help

  • Direct intros (not just lists)

  • Deal closing

  • Revenue generation

• Real Talk: Closed deals > good advice.

7. The Cash Rule: No Cash = No Equity

• Bad: Asking for equity without any investment.

• Good: Real advisors invest cash first, then discuss advisory shares.

• Real Talk: Demand they cut you a $25K check before you even consider giving away equity.

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Red Flags to Run From 🚩

Avoid anyone using these phrases:

• “Let’s keep it flexible”

• “I advise many startups”

• “Great network”

• “Available when needed”

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The Good Advisor: What Real Help Looks Like

A great advisor is like a part-time co-founder who:

• Provides weekly hands-on work.

• Helps you achieve measurable goals.

• Brings specific expertise that is lacking on your team.

• Invests their own cash first (it shows that they believe in you).

Good advisors write checks before asking for equity.

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A Better Alternative: Paid Help

When a “traditional” advisor isn’t cutting it, consider other options:

• Paid consultants.

• Part-time experts.

• Industry mentors.

• Angel investors.

Real Talk: $5K to an expert who gets results is worth far more than giving away 1% to a fake advisor.

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Remember This:

Before giving equity, demand:

• Cash investment first.

• Written commitments.

• Clear deliverables.

• Measured results.

• Vesting schedule.

Never accept:

• Vague promises

• Future intros

• Flexible time

• Pure advice

"In the early stages, a real advisor is like a part-time co-founder, not just a photo on your pitch deck."

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Your Turn

Have you encountered these "advisor" red flags? Share your experiences in the comments below! Let's help each other make smarter choices and avoid the advisor trap.

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