How it’s paid
Nobody writes a cheque
When a match works and both sides want to continue, the founder and the advisor agree an equity allocation and how it is earned. Common practice is 0.25% to 1.0%, vesting over one to two years. The paperwork is generated and signed before the first call.
We run that part through GetSweaty, which handles the option agreements, the filing pack and the vesting, and supports vesting against milestones rather than the calendar. It is free for founders and for advisors. Room2Rise does not set the terms and takes no share of the equity.
You agree how it is earned
Most advisory equity vests on a calendar. Turn up for two years and it is yours, whether or not anything moved. That arrangement pays for attendance.
The alternative is to attach the equity to the work. The two of you define what needs to happen, the advisor does it, and that milestone vests. Anything left uncompleted lapses. Which shape you use is yours to agree, and nothing moves until the agreement is signed.
The boundary
Options, not votes.
An advisor holds options, not shares. No vote, no formal position, nothing on the register. It is the same boundary the rest of this site describes, written into the instrument itself.
Equity in an early-stage private company is illiquid and it can end up worth nothing. That is true of every advisory arrangement anyone will offer you. We would rather say it on this page than let you work it out later.
Advisors
What you get. A profile, matches against live founder questions, the group, and options in the companies you advise.
What it costs. Nothing. You are not paying to be seen.
What we ask. Honesty about your availability, and that you finish what you signed for.
Founders
What you get. A matched advisor, a signed agreement before the first call, and milestones you agree.
What it costs. A small equity allocation. No cash, no retainer, no invoice.
What we ask. That you agree the milestones honestly with your advisor and sign them off when they land.
Straight answers
- Why equity and not a fee?
- A founder choosing between an advisor and a month of runway will choose runway, and should. Equity means the advisor does well when the company does.
- Who sets the percentage?
- The founder proposes it and the advisor agrees it before anything starts. Common practice is 0.25% to 1.0%, and most sit toward the lower end unless the scope is broad.
- What happens if we stop?
- Whatever the agreement says. Where vesting is tied to milestones, completed work has vested and anything outstanding lapses. It was signed at the start, so there is nothing to argue about.
This page describes how advisory equity commonly works. It is general information, not financial, legal or tax advice. Get your own advice before you sign.