The founder/consultants default model (“FAST”) was developed by the founding institute to assist future entrepreneurs in the start-up programs we implement and implement around the world and in contact with the mentors with whom they interact throughout the program. In 2011, the founding institute published the public FAST agreement, and we have since undergone gradual updates to version 1 of the agreement. On August 1, 2017, the founding institute released a preview version of Version 2, which contains a number of improvements: the FAST agreement is used by tens of thousands of entrepreneurs and consultants a year to build productive working relationships, business advice and support for a standardized amount of equity. Contractors should work carefully with consultants. Just because someone has a good name or domain expertise doesn`t mean they`re a good advisor or there`s the right level of chemistry. The founding institute recommends that a contractor work with a potential consultant for at least one month and spend at least 8 hours together before discussing the FAST agreement. The FAST agreement includes a three-month “stumbling block” on share participation, which allows an unproductive advisory relationship to end without having the weight of the capital allocation in the first three months. 2. Compensation. In return for the services provided by the consultant and other obligations, the entity compensates the advisor with equity funds as defined in Schedule A, subject to a blocking plan defined in Appendix A and the agreement to grant or issue equity to the advisor.

There are three levels of maturity that affect equity compensation: idea, start-up or growth. There are also three levels of commitment for a consultant that also influence compensation: standard, strategic or expert. For example, if a consultant offers assistance to a start-up start-up by meeting with the team each month, recruiting talent and answering a customer call, that consultant earns 1% of the business in the form of shares or limited options awarded over a two-year period; offsetting a similar commitment to a growing business of only 0.6%. The FAST capital compensation framework is shown below and the full agreement, which explains everything, follows. But before you think about the number of stocks or options to issue an advisor, there are a number of points to hammer. What is the councillor`s role? Will it give marketing insights or instructions at the board level? How long is it expected of her each month and how long? What does she pay? Defining these points will help determine the right amount of justice that needs to be spent and that everyone is on the same side in terms of expectations and responsibilities.