The Standard Founder/Advisor Template (“FAST”) was developed by the Founder Institute to help emerging entrepreneurs in the startups we operate around the world and connect with the mentors they interact with throughout the program. In 2011, the Founder Institute published the FAST agreement for the public, and since then we have been gradually updating version 1 of the agreement. On August 1, 2017, the Founder Institute released a preview version of version 2, which contains a number of improvements: contractors should take care of consultants carefully. Just because someone has a good reputation or has expertise doesn`t mean they`re a good advisor or there`s the level of good chemistry needed. The Founder Institute recommends that an entrepreneur work with a potential consultant for at least a month and spend at least 8 hours together before discussing the FAST agreement. The FAST agreement includes a three-month “pitfall” in equity admission, which makes it possible to end an unproductive advisory relationship without having the weight of the equity allocation in the first three months. American startups For American startups, the Founder Institute offers some instructions on the numbers as well as a free presentation agreement to quickly and without a legal headache eliminate the formal framework of the relationship. You can read their instructions and get the American model here. But before we think about the number of shares or options to issue a consultant, there are a number of points to solve.
What is the role of the advisor? Will it provide marketing information or instructions at the board level? How long is it expected of her to commit each month and for how long? What do you pay? Defining these points will help determine the right amount of capital and ensure that everyone is on the same side in terms of expectations and responsibilities. 2. Indemnification. In return for the services to be provided by the adviser and other obligations, the entity shall compensate the adviser with own funds of the kind and amount set out in Appendix A, which shall be subject to an unwavering plan in accordance with Annex A and the agreement to grant or issue own funds to the adviser. The FAST agreement recommends standard equity grants for a single advisor. It`s not uncommon for a tech startup to allocate a 5% equity pool to a group of strategic advisors or an advisory board. The advisors referred to in the FAST agreement are founders and senior managers for strategic advice through advisory board roles, and these advisors are normally compensated by equity. The FAST agreement is not designed for traditional project consulting and “work for safety” relationships. 13.2. Single Agreement. This Agreement, including the Annexes, constitutes the exclusive agreement of the parties and supersedes all prior hearings and writings relating to the subject matter of the Contract.
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