Founder Advisor Standard Template (FAST)

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What is it?

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.

Why do you need it?

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).

Key clauses to watch for:

When drafting a Founder Advisor Standard Template, it is important to focus on a number of key clauses, in particular:

  • Details of the company;
  • Details of the advisor;
  • Agreed stage that the startup is currently at (since this will dictate the level of equity to be granted to the advisor);
  • Advisor compensation; and
  • Termination of the agreement.

 

Founder Advisor Standard Template (FAST) Document

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