Graduating founders allocate 4% of your company to the Founder Institute through the form of a Warrant or Option, and the Founder Institute then contractually allocates any money that is generated from the Warrants or Options to various stakeholders. Upon exercising the warrant, The Founder Institute would become an official common shareholder for easy corporate housekeeping, but the contractual allocation spreads returns from the Warrants or Options with others, allowing you to have the benefit of multiple shareholders without the complexity. Teams that join the Founder Institute pledge 4% total to the collective (it is 4% per company, not founder).