Put advisor equity in writing before expectations drift

Trust is helpful, but startup advisor arrangements often become unclear once the company changes direction, raises money or expects more involvement than originally discussed. Problems usually arise around what the advisor was actually meant to do, whether equity was earned over time or upfront, and what happens if the relationship fades out after a few introductions or meetings. A written agreement gives the founders and the advisor a shared record of the role, the equity mechanics and the circumstances in which the arrangement can end or be revisited.

Most advisor equity agreements deal with the advisor's role, the services or introductions expected, the type or amount of equity being offered, and how that equity is earned. They often also cover vesting periods, milestone triggers, confidentiality, intellectual property, conflicts, termination and what happens if the advisor stops contributing. If the arrangement is tied to fundraising support, product advice or strategic introductions, those points should be described carefully so the agreement reflects the real commercial deal rather than a vague promise of help.

The level of customisation usually depends on what the advisor is actually doing and how the equity is meant to work. A simple arrangement may only need clear role wording and a basic vesting schedule. More involved setups might need milestone drafting, restrictions on authority, IP wording if the advisor contributes materials or know-how, and clearer exit mechanics if the relationship is short term. We use your instructions to shape the agreement around the arrangement you have actually discussed, rather than forcing it into a generic founder-advisor template.

Timing depends on how settled the commercial terms already are and whether there are open questions about vesting, milestones or the form of equity being offered. Once we have the key instructions, we prepare the draft agreement and work through any points needed to finalise it. If the founders are still deciding the commercial deal, that usually adds time because the legal wording depends on those decisions. The service covers the agreement drafting itself, while any broader cap table planning, tax structuring or longer-term support would need separate advice.

No. This page covers the advisor equity agreement itself and the legal drafting needed to document that arrangement. It does not include tax advice, ongoing representation, or a full set of company or fundraising documents unless that is separately agreed. If your startup also needs shareholder approvals, constitution updates, option documentation or investment paperwork, we can discuss those as additional work. That way, the scope stays clear and the fixed-fee remains tied to this specific document rather than a broader startup restructure.

Submit an enquiry on this page or click 'Get started'. One of our legal consultants will review it within 1 business day and get in touch to understand what you need.

Your consultant will then email you a fixed-fee quote setting out the cost, scope and timing. If you're happy with it, you can accept the quote and sign our engagement letter online.

Once you've accepted, one of our Australian-qualified lawyers will work with you to complete your project. They'll contact you by email or phone if they need anything.

Sprintlaw works on fixed-fee pricing wherever possible, so you can review the scope and cost before you decide whether to proceed. For the Advisor Equity Agreement service, pricing starts from $900.00.

After you enquire, a legal consultant will confirm what is included, the expected timing and whether any extra work is needed before you engage us.

We work online, so we can help wherever you are in New Zealand. Our team works remotely, mainly from Australia.

Your work is done by our Australian-qualified lawyers, who hold Australian practising certificates and specialise in business law. None of them are New Zealand lawyers or hold a New Zealand practising certificate.

Sprintlaw NZ Limited is a legal consultancy, not a law firm, and is not regulated by the New Zealand Law Society. We don't act in court or tribunal matters, conveyancing (including leases and business sales) or other reserved areas of work. Communications with Sprintlaw are unlikely to be protected by legal professional privilege. We still keep everything confidential under our engagement letter.