As a result, we created «FAST» (Default Template) which defines the standard conditions and allows us to define a consulting agreement by simply checking a few boxes and signifying the polka dot line. The aim is to promote cooperation between experienced and new founders, both within and outside the founding institute. The FAST agreement recommends standard equity grants for a single advisor. It`s not uncommon for a tech startup to allocate a 5% equity pool to a group of strategic advisors or an advisory board. Entrepreneurship expert and publisher of information on Internet startups and Apps Founder Institute The Founder Institute is a global network of startups and mentors that helps entrepreneurs create useful and sustainable technology companies. Sometimes sharing equity between your employees and consultants is a good way to increase motivation. Issuing shares to a consultant could be a good way to develop the professional relationship. But before thinking about stocks or options, it`s important that the basics are laid out first. For example, let the consulting contract automatically expire every 6 months (or a team you prefer) and require both parties to sign an extension each time. Why: If an «industry leader» is willing to dedicate their valuable time to your startup, they should also believe in the company, and investments are a great way to show that. This approach tests this belief and can potentially increase your lead.
As with our other Seedsummit documents, the consulting agreement is supposed to be a template on which you can customize or use the custom agreement that works best for you. 1. Services. The Advisor undertakes to serve as a mentor or advisor to the Company and to provide advice and support to the Company from time to time, as set out in Appendix A or otherwise mutually agreed between the Parties (together the «Services»). 11. Other. Any provision of this Agreement may only be modified or rescinded with the written consent of the parties. As long as you continue to be a consultant to the company, you agree that the company may list your name on its marketing materials, website or private placement training or that it will offer materials as consultants to the company.