Consulting for equity?

April 28, 2026

by a searcher in Bluffdale, UT, USA

Has anyone on here consulted for equity successfully? If so how did you structure it? We have a few companies who we are talking to about this and want to avoid any mishaps. Thank you!

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Reply by a searcher
from University of Texas at Austin in Austin, TX, USA

What industries? I have, sorta.....I am on the board of a startup (in the real estate development space), and meet with the founder every other week in exchange for equity. I make a lot of introductions on his behalf. The biggest thing to remember is if there is no exit or other liquidity event there is no official value to the equity. If there is a round, or exit it gives a monetary value, but there is no guarantee there will be a buyout or a market for your equity. That being said, you could negotiate for a % of profits or revenue, potentially differed until there is certain amount of consistent cash flow. There are a million ways to structure it.

Reply by a professional-legal
from University of Wisconsin in Minneapolis, MN, USA

I'm not sure there is any magic to it. Instead of cash compensation you get a number of shares or (more often) equity based awards e.g., options or RSUs that vest over time like a couple of years. Helps the company conserve cash and align your interests to the company's. Most companies use the FAST form: https://fi.co/fast#fast-agreement

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