What Is An Advisor Agreement

The key to any consulting relationship is to find the right fit. You will know in a few months if it will be fruitful. It`s also not uncommon for advisors to ask questions about tracking future rounds of financing with their own money and investing directly in the business. Consultants get unique insight into a company`s high-level operations and if they like what they see and have the resources, they may want to join. Sometimes consultants even become key employees of the company. Some deals have a three-month cliff, which gives the parties time to determine if the relationship adds value and works. The FAST agreement recommends standard equity grants for a single consultant. It`s not uncommon for a tech startup to allocate a 5% share pool to a group of strategic advisors or an advisory board. Choose your advisors like a co-founder.

At best, a consultant can be critical to your success as a business; in the worst case, they can be a distraction and waste of precious time or even a burden. Know what you`re getting into by identifying the type of advisor you want: To learn more about working with advisors, go to Board of Directors and Advisors. You can also visit Create and Protect to get items to protect your company`s intellectual property. If you`d like to get in touch with dozens of potential mentors and consultants to start your startup, you should apply to a local Founder Institute program. You can apply on the following link: A major problem faced by the 4,500 graduate companies and 18,000 mentors of the Founder Institute is the formation of a consultant contract. We have literally hundreds of consulting agreements to look at – and each one is different. With a single signature and a checkbox for the FAST agreement, contractors and consultants can agree in minutes on how to work together, what to achieve and what is the right amount of compensation in shares. « You basically create a job description, » Clayton says, « and you want to look for consultants. » For example, if this is your first time raising funds, it can be helpful to have the ear of someone who has done it several times. If your B2B team is strong in data and engineering, you may want someone who has experience selling to Fortune 500 companies. « Find a consultant who not only fits what`s on paper, » Clayton says, « but also fits your culture and can work with you.