Advisory shares are a type of stock option given to company advisors rather than employees. They may be issued to startup company advisors in lieu of cash compensation. Advisors are usually granted options to buy shares rather than given the actual shares.

What is the point of advisory shares?

Advisory shares are an incentive offered to company or start-up advisors, often in lieu of cash or salary. Advisory shares are a kind of stock option usually given to company or start-up advisors as a reward for their contribution to the company.

Do advisory shares get diluted?

Managers are given 1 to 2%, and employees are diluted to 0.5 to 1%. At this point in the financing stage, the advisor's stock is diluted to 0.25%. Next is the acceleration A round, one of the last financing stages before the company offers its final shares of equity.