You need to find consultants who can expand your team with skills, experience and connections. If you`re all PhD students in astrophysics and you`re building a related start-up, you don`t need the head of your university`s physics department or even a Nobel Prize winner in physics in your consulting team. You will need some people with fundraising and business experience. Also, don`t try to get famous people to be an advisor; I know Mark Zuckerberg doesn`t meet you every month and won`t add much value other than the coolness factor. 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. 2. Compensation. In return for the services provided by the consultant and other obligations, the entity compensates the advisor with equity funds as defined in Schedule A, subject to a blocking plan defined in Appendix A and the agreement to grant or issue equity to the advisor. For every entrepreneur who is looking for the real value and commitment of their advisors, the numbers simply don`t cut above. Contractors should work carefully 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. If your advisor is truly valuable, then you need to strengthen what you offer in justice to get real participation, otherwise you will be left with a potentially valuable advisor who doesn`t give you time or an unnecessary advisor who gives you time that you don`t want or need.