When a founder in the Equity Collective achieves a liquidity event by selling their business or by going public, the Founder Institute distributes the proceeds to the stakeholders through the following process: 

  • The founder notifies the Founder Institute that there is an impending liquidity event, and FI will provide some strategic advice on closing the deal for the best terms. 
  • FI will also work quickly to provide any necessary signatures and approvals. 
  • When the transaction is completed and a payment is sent to FI, FI then takes the total return and divides it up by the contractual allocation, which is stored in our systems and checked by our accountants. 
  • Individual distribution checks are then cut for all of the stakeholders and mailed along with a nice letter.

In the future, FI may switch to PayPal for convenience.