Posted by The Founding Member on 2009-05-06
TheFunded Founder Institute is a new founder-centric incubator that trains new and seasoned entrepreneurs alike to lead the next generation of innovative companies. The unique 4-month program offers the industry's most founder-friendly startup environment, mentorship from renowned CEOs, fundraising opportunities at fair market value, and shared equity upside for all participants. Passionate founders are invited to apply today at http://www.FounderInstitute.com.
We can use your help to spread the word: mention the Institute on your blog, send out a Twitter message, or contact a journalist.
Why is the Institute special?
- The Institute protects founders from exploitive practices with a founder-centric offering,
- Offers founders upside from pooled equity in participating companies,
- Secures heavily discounted products, tools, and services, and
- Attracts fair market investment from top-rated investors.
To celebrate the Institute launch, TheFunded.com has created startup agreements for any company to use, giving founders unprecedented levels of control and protections. The agreements create a new class of common stock for founders, "Class F." The stock offers founders a suite of protective provisions, 2:1 Board votes per Founder versus normal Board Members, and 10:1 share votes as compared to normal common. Participating Class F shares vest monthly without a cliff to act as compensation for founding teams, and "single trigger acceleration" allows one Founder to leave without hurting co-founders. Class F holders get acceleration on change in control and approval rights on new investments, liquidity events, Board size, and dividends.
Class F stock is a major advance in the rights offered to founders. For years, investors have padded preferred rights agreements with increasingly complex terms that severely diminish the rights and protections of common stockholders. TheFunded.com and the Founder Institute are fighting back. The Class F documents are freely available, and every founder is encouraged to use them in their companies:
Form of Incorporation
Form of Stock Purchase Agreement