# Paul Graham Says Pre-Seed Advisors Are a Red Flag

**Author:** Peter Walker  
**Read time:** 2 minutes  
**Published date:** October 19, 2025

Both PG and YC equivalents see advisors as a red flag for very early companies—and data shows advisors must make a strong case for equity above 0.25% at...

Paul Graham thinks having an advisor as a pre-seed startup is a red flag 🚩

(See attached snapshot from X in a longer comment thread around red flags for super-early companies.)

So, is he right? Obviously, both of these gents run accelerators, which provide advice in exchange for equity...maybe they're just talking their own book, I get it.

But advisors gotta make a strong case for significant equity these days.

Data in the graphic reflects the full option grant % given to advisors by pre-seed startups. Split into low (25th pct), medium (50th pct), high (75th pct) and super high (90th pct).

Please make sure these advisors have a vesting schedule. Typically 2-years with a short cliff or you can set specific performance milestones (eg Advisor A gets 0.1% equity after they complete the following tasks for the business).

There are two broad reasons to add an advisor to your company:

1. They are bringing technical expertise you desperately need.  
2. They are introducing you to customers that sign up.

A zoom every once in awhile to discuss strategy? Not gunna cut it.

### Other Advisor Data

- The median pre-priced round startup on Carta has 1 advisor. A growing percentage have none.
- There is a small but growing cohort of startups that have many advisors (in the 10-15 range). Those folks are getting tiny slices of equity - not sure if this is a new strategy or just a quirk of the moment.
- We see many people start out as advisors and then become strategic investors (typically with a smaller check) into the same company. That's a great strategy to bolster the value of said advisors as a signal to potential VCs.
- The most common template for advisor equity docs and agreements is the FAST (Founder/Advisor Standard Template). I think it's a great and highly recommend it to early founders.
- The data below covers startups of all kinds. Those building in life sciences and technical hardware do tend to see larger advisor equity grants at the early stages.