Many startup companies hire advisory boards. It’s very tempting. It’s mostly done by first-time entrepreneurs who want to persuade (bribe?) prominent industry luminaries to be closely associated with the company. It’s done partly in hopes of gaining their wisdom but it’s also done to portray the company in a positive light through association. So do advisory boards really add value? And if you decide to have one how do you best implement it? In my experience most advisory boards under deliver relative to expectations. The CEO picks prominent people who are busy in their own right with their own companies. They are usually offered around 0.25% of the companies equity in exchange for their role and I’ve seen many companies hand out a total of 2% to advisers. If you plan to set one up – no problem. But know what your expectations are and make them realistic. My main advice to you if you’re considering it is don’t waste much equity on it.