f6s Launches ‘Equity for Mentorship’ Startup and Mentor Agreement; Morpheus, the First To Adopt from India

Friday October 05, 2012 , 2 min Read

The global f6s community, comprised of 300+ startup programs, has today launched the ‘Mentor Shares Agreement’ template. This agreement gives Startups and Mentors a clear and simple template that allows them to formalize their relationship. It defines what the Mentor will do to drive growth and provides clarity around what the startup will reward in terms of equity.

Access is gained through a ‘Mentor Shares Agreement’ generator and includes guidance on its use and a forum for startups, mentors and legal professionals to share queries, give advice and discuss in detail. The document was developed and is sponsored by Pinsent Masons LLP’s Bootlaw programme (UK version) and Orrick (US version). Bootlaw is a free boot camp for emerging technology, Internet and digital professionals who want to learn more about the legal issues they face.

The f6s ‘Mentor Shares Agreement’ template:

Is a simple agreement that allows both parties to specify what the mentor will do for the startup, the equity a mentor will receive in return, the period during which the Mentor will help the startup and more.
Contains guidance notes for startups and mentors on how to issue, structure and understand the tax implications of Mentor Shares.
Is immediately available for both UK and US startups. Many of f6s programs and startups have already asked for localised versions for other countries, which are in progress.
Is developed through f6, a global startup community of 300+ startup programs and tens of thousands of startups across Europe, the US and Canada, Asia, Latin America, India, Australia and New Zealand.

f6s startup programs already adopting the ‘Mentor Shares Agreement’ include:

Tech Wildcatters (Dallas) - United States,

Nazca Ventures (Buenos Aires) - Argentina

the Morpheus - India

Springboard (United Kingdom)

Le Camping (Paris)

Tetuan Valley (Spain)

Sameer Guglani, Founder of India-based Startup Accelerator, the Morpheus, added: "The ‘Mentor Shares Agreement’ is a crucial step in making the startup ecosystem both fair and transparent. We are very pleased to be part of this initiative and are looking forward to collaborating with the rest of f6s community in future legal documentation initiatives."

According to Sean Kane, Mentor at f6s: “The primary driver for most mentors is to give back. However, early-stage startups and mentors that want a long-term relationship often hit a ‘wall’. It’s difficult to formalize the relationship and a mentor/startup break-up is a common result. Mentor Shares came out of the f6s startup community to solve this problem and help startups and mentors continue to grow together.”

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