A Founder Advisor Standard Template (FAST) is an agreement between the founders of a company and an advisor to compensate the advisor with equity (ordinary shares in the company).
A FAST agreement sets time and performance based targets for the advisor, and, dependent on the stage the business is at (idea, growth, revenue-making), determines the amount of equity that will be awarded if these goals are achieved.
When you are starting a new company, it is important to secure the assistance of experienced advisors who can guide you as you build your business, broaden the skill-set of your team, and increase your network with investors and potential clients. Any startup should of course choose an advisor very carefully, but given that valuable advisors are often effectively unaffordable for a newly formed business, it is common and often mutually beneficial to compensate an advisor with shares in the company. This agreement can be quickly documented with a Founder Advisor Standard Template (FAST).
When drafting a Founder Advisor Standard Template, it is important to focus on a number of key clauses, in particular: