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: entrepreneurs should work 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. The FAST agreement recommends standard capital grants for an individual advisor. It is not uncommon for a technology startup to award a 5% capital pool to a group of strategic advisors or an advisory committee. Consultants who aspire to the FAST agreement are founders and senior executives for strategic advice through advisory roles, and these consultants are generally compensated in equity. The FAST agreement is not designed for traditional project council and work-rental relationships. The FAST agreement is designed to save time and money to negotiate consulting relationships.
There is only one page to complete and no legal assistance is required. The FAST agreement is free and can be modified as needed. Check any modified FAST chords with the original model to make sure you don`t sign unexpected conditions. Spanish version: A Spanish version of the FAST agreement is available below. 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. With a single signature and a box to coerc on the FAST agreement, entrepreneurs and consultants can agree in a few minutes on how to work together, what to accomplish and the correct level of equity compensation.
A conventional approach for a contractor to hire a consultant could follow the next project. With the FAST agreement, you can activate a few boxes, sign the agreement and start working. There is no more negotiation, legal development and verification. New versions of FAST are refined based on returns. If you have any comments, please contact the form at the bottom of this page to submit them. If you are interested in working with dozens of potential mentors and consultants to create your start-up, then you should apply for a Local Founder Institute program. You can apply on the link below: 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.