Contents
If you’re a startup (or any business, really) getting help from an advisor, it’s important to set out your business relationship in writing. In today’s competitive 2025 landscape, having clear, formal documentation is more crucial than ever.
Why?
Advisors are technically external third parties, so it’s crucial that you set out the terms of their engagement with your business – this is known as an Advisory Agreement. Explicitly detailing roles and responsibilities helps avoid miscommunications and protects your interests as your startup scales.
However, a FAST Agreement might be more suitable for your business if you’re looking to offer potential shares to your advisor instead of a cash payment. In 2025, many startups face cash flow constraints in their early stages, so offering equity can be an attractive, flexible alternative that aligns long-term incentives.
Why Do I Need A FAST Agreement?
FAST Agreements are popular among startups in the exciting early stages of their business journey, providing a practical way to compensate advisors when cash is tight. Many founders have brilliant ideas but may not have the funds to offer standard financial compensation – that’s where a FAST Agreement really comes into its own.
By offering the right to receive shares instead of immediate cash, such agreements not only conserve your working capital but also motivate advisors to drive growth and achieve key milestones. For further insight into drafting legally sound contracts, you might also check out our article on what makes a contract legally binding.
What Does A FAST Agreement Cover?
As mentioned, a FAST Agreement enables startup founders to offer shares to their advisors rather than money. This is one of the key elements of the contract, ensuring that both parties have aligned interests and clear expectations concerning equity allocation.
But what other important terms should be included? Aside from outlining the advisor’s services and the details regarding share issuance, your FAST Agreement should also specify performance milestones, vesting schedules, and any conditions precedent for the transfer of shares.
It is also crucial to clearly establish a vesting schedule for the shares allocated to your advisor. In 2025, with evolving market dynamics and increased regulation, many startups are utilising performance-based vesting periods to protect their equity and ensure continued advisory commitment. For more detailed guidance on building a robust legal foundation for your agreement, have a look at our Getting Started With Your Legals guide, and read how other startups manage their legal requirements.
Where Can I Get A FAST Agreement?
A FAST Agreement needs to be carefully drafted to reflect your startup’s current situation and future needs, especially with the rapid changes businesses face in 2025.
At Sprintlaw, we offer a FAST Agreement package which includes the following:
- A FAST Agreement tailored to your startup
- Phone consultations with one of our expert lawyers who can guide you through the process
- A complimentary amendment to the final draft we provide to you
Need Help?
Working with advisors is a great way to ensure you’re on the right track with your startup, though it can be challenging when resources are limited. A well-drafted FAST Agreement not only offers flexibility in compensating your advisors but also sets clear expectations for the success of your business.
If you need legal help exploring your options or tailoring an agreement that meets the specific demands of the current market, feel free to reach out. Contact us at 1800 730 617 or email team@sprintlaw.com.au for a free, no-obligations chat. For more on the legal side of your startup journey, our resources – including insights like How Do Small Businesses and Startups Do Legal? – are here to support you every step of the way.
Get in touch now!
We'll get back to you within 1 business day.
Top 3 Legal Mistakes
Book in a free consultation with us to discuss your legal needs.