What is FAST?
The Founder Institute developed FAST to encourage collaboration between entrepreneurs and domain experts. It allows any mentor, advisor, or expert to quickly engage with a technology company using fair terms and preset equity compensation.FAST standardizes advisor engagement across the startup ecosystem, making it easier to quickly onboard advisors without lengthy negotiations.
Key features
Standardized equity compensation
Standardized equity compensation
FAST includes preset equity amounts based on the advisor’s level of involvement and the company’s stage. This eliminates lengthy negotiations and ensures fair compensation aligned with industry standards.
Clear expectations
Clear expectations
The template defines specific advisor responsibilities, time commitments, and deliverables. This creates mutual understanding and prevents misaligned expectations down the road.
Vesting schedules
Vesting schedules
Equity typically vests over 2 years with monthly or quarterly vesting. This aligns the advisor’s incentives with long-term company success and protects you if the relationship doesn’t work out.
Termination provisions
Termination provisions
The agreement includes clear termination clauses that protect both parties. You can end the relationship if the advisor isn’t adding value, and they retain vested equity.
When to use advisor agreements
You should formalize advisor relationships when:- Providing equity compensation - Any time you’re granting equity, get it in writing to avoid disputes later
- Regular engagement expected - The advisor will provide ongoing guidance rather than one-off advice
- Strategic importance - The advisor has domain expertise or connections critical to your success
- Public association - You want the advisor to publicly support or represent your company
Standard equity guidelines
FAST suggests equity ranges based on company stage and advisor involvement:| Stage | Standard Advisor | Strategic Advisor |
|---|---|---|
| Pre-funding | 0.25% - 1.0% | 1.0% - 2.0% |
| Post-seed | 0.1% - 0.5% | 0.5% - 1.0% |
| Post-Series A | 0.05% - 0.25% | 0.25% - 0.5% |
Key terms to define
When using FAST or any advisor agreement, clearly specify:Time commitment
Define how many hours per month the advisor will dedicate. Be realistic about what you need and what they can provide.Specific responsibilities
Outline what you expect from the advisor:- Monthly or quarterly meetings
- Introductions to specific types of contacts
- Technical or domain expertise in particular areas
- Board meeting attendance (if applicable)
Equity amount and vesting
Specify the exact equity percentage and vesting schedule. Standard is 2-year vesting with monthly or quarterly vesting periods.Confidentiality and IP
Include provisions protecting your confidential information and ensuring any IP the advisor contributes belongs to the company.Getting started
FAST template
Access the official FAST template on OpenLaw to customize for your needs
General advisor agreement
Alternative advisor agreement template with more customization options
Best practices
Start with a trial period - Engage advisors informally for 2-3 months before formalizing with equity Be selective - Quality over quantity. A few highly engaged advisors beat a large advisory board on paper only Set clear metrics - Define what success looks like and review quarterly Formalize early - Once you decide to grant equity, get the agreement signed immediately Use standard terms - FAST exists for a reason. Non-standard terms slow everything downCommon mistakes to avoid
Granting too much equity
Granting too much equity
Advisor equity should be significantly less than employee equity. They’re not working full-time and shouldn’t dilute your cap table like an early employee would.
No vesting schedule
No vesting schedule
Always include vesting. If the advisor disappears after month one, they shouldn’t keep all their equity.
Unclear expectations
Unclear expectations
Vague agreements lead to disappointment. Be specific about time commitment and deliverables.
Building a trophy advisory board
Building a trophy advisory board
Big names who don’t engage are worse than useless - they give false signals to investors and waste cap table space.