A friend and I have been working on a fintech prototype for the past three years. We’ve built the AI, developed a working demo, and are now at the stage where we need capital to cover licensing and move toward commercialization.

An experienced advisor—who has had two to three successful exits—has offered to help. He would lead the deck creation, handle pitching, and raise approximately $4–5 million from his network(other VCs). If his health permits, he may also join the company full-time afterward.

What would be an appropriate compensation structure in this situation? He is asking for 5% equity and 5% cash compensation.