The deal was almost done—until the advisor asked for equity, a formal title, and a press release. None of it had been agreed. What started as a casual relationship quickly turned chaotic.
Advisory boards offer startups a powerful edge: insight, credibility, and networks. But without a written advisory board member appointment agreement, even the best-intentioned relationships can break down.
As your company scales, investors and executives alike expect legal clarity. And that starts with a structured agreement.
The problem: Handshake deals don’t scale
Founders often recruit advisors early, usually fast, informal, and based on trust. But things shift quickly: strategic decisions get weightier, stakes get higher, and suddenly, a vague advisory role becomes a governance risk.
Here’s the kicker: without an advisory board member appointment agreement, expectations go unmanaged, roles blur, and value gets lost.
What belongs in an advisory board member appointment agreement?
At ITLawCo, we help high-growth businesses draft advisory board member appointment agreements that are clear, fair, and fast to finalise. The best ones cover:
🧾 Clear scope and boundaries
- Outline the advisor’s contributions—strategy, industry insight, networks
- Clarify that their role is non-binding (not a director, not liable)
- Define time commitments and meeting cadence
📆 Term and exit clauses
- Fixed duration with easy renewal
- Termination rights (with or without cause)
- Survival clauses for confidentiality and IP
💰 Compensation and equity (if any)
- Cash retainer, per-meeting fees, or equity
- Vesting schedules if equity is offered
- Reimbursement of reasonable expenses
- Clarity on tax obligations
🔐 Confidentiality and IP
- Define confidential information broadly
- Assign any IP created during the engagement
- Protect both parties from future disputes
⚖️ Status and independence
- Confirm independent contractor status
- Avoid employer obligations or liability
- Allow for non-exclusive advisory work
🚨 Conflicts and indemnity
- Duty to disclose conflicts of interest
- Optional indemnity for claims arising in good faith
🧭 Dispute resolution
- Governing law and jurisdiction
- Mediation, arbitration, or litigation—pick one upfront
Case in point: how clarity saved a Series A
A high-growth client in health tech was about to appoint a well-known advisor with Silicon Valley credentials. But the lack of clarity around IP rights and compensation nearly stalled the relationship. We stepped in, drafted an advisory board member appointment agreement that balanced trust with legal protection, and helped both sides align quickly.
Six months later? That advisor helped close their Series A.
Don’t let goodwill go to waste
Advisory boards are powerful—but only when expectations are clear. If you’re inviting others into your strategic orbit, make it official.
Start with an advisory board member appointment agreement that protects both sides.
| Option | What it includes | Best for | Price (USD, excl. VAT) |
|---|---|---|---|
| Advisory board agreement – essentials | Custom agreement drafted, founder briefing, and two rounds of revision. Delivery within 72 hours. | Founders appointing their first advisor or formalising existing roles. | $500 |
| Advisor risk scan – express | 30-minute session to flag risks in current or informal advisor setups. Includes checklist and verbal recommendations. | Companies already working with advisors without formal agreements. | $150 |
| Board-ready pack – standard | Template pack with agreement, confidentiality addendum, IP clauses, and advisor onboarding notes. Optional live workshop add-on. | Teams building an advisory board or preparing for a funding round. | $600 (add-on workshop: $300) |
| Advisory board strategy session – premium | 90-minute founder or GC session to review advisory structure, investor expectations, and governance alignment. Includes written roadmap. | Funded startups or scaling companies seeking strategic positioning. | $1,250 |
| Clarity call | 15-minute call to explore your needs and identify the right starting point. | Founders exploring options or unsure where to begin. | Free |
Book a clarity call with ITLawCo.
