If you`re interested in getting in touch with dozens of potential mentors and consultants to build your startup, you should apply for a local Founder Institute program. You can apply on the following link: Contractors must 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. 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 that contains a number of improvements: 2. Compensation.
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. Uk Startups In order to complement the Founder Institute`s resource to this discussion, we have launched the consultative agreement. This free presentation agreement is UK-friendly and covers the main standard topics – appointment and termination, time, roles and obligations, fees, conflicts of interest and confidentiality. Of course, when discussing the agreement, you may come across other points that you can include (exclude) or make other changes. 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. 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. 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. Previously, we published some guidelines on issuing the right number of shares/options to employees and consultants.
As stated in this article, sharing equity with employees and consultants is often used as a motivational tool and as a way to develop a company`s relationship with that person. An advisory contract between a company and its advisor should be used. The agreement defines the expectation of the relationship, such as the work done on behalf of the advisor and compensation. The agreement should also define some key concepts, such as confidentiality and the allocation of labour products. The FAST agreement was developed to save time and money in negotiating consulting relationships. There is only one page to fill out and no legal aid is needed. The FAST agreement is used by tens of thousands of entrepreneurs and consultants per year to establish productive working relationships, business advice and support for a standardised amount of equity….