Legal, Founder Agreement, Warrant, & Incorporation

From the Founder Agreement to the Warrant and everything in between. **The information you obtain on this website is not, nor is it intended to be, legal advice. You should consult with an attorney for individual advice regarding your own situation.

If I drop out, do I still owe 4% equity to the Founder Institute? When is 4% of my company granted?
During the course of the program, each Founder will be asked to incorporate their company as a mandatory part of the program. The 4% warrant will be issued ...
Mon, Mar 2, 2020 at 4:47 PM
Why does the Founder Institute use warrants versus equity?
Warrants have a number of advantages over equity. (1) Successful founders from incubators often feel that they receive bad investment terms from the incuba...
Mon, Mar 2, 2020 at 4:57 PM
Why is any company that I create during the program, and within 6 months after Graduation of the program, obligated to join the Equity Collective?
Similar to the 45-day stipulation above, this clause is meant to prevent founders from immediately starting a new (identical) company after Graduation that ...
Mon, Mar 2, 2020 at 4:48 PM
How does investment work with the Warrant or Option?
There are two types of investments done by founders, either a convertible investment or an equity investment. The Warrant or Option only matters with respec...
Mon, Mar 2, 2020 at 4:57 PM
Why are founders required to start a commercially viable product within 24 months after the program?
This clause was added to the Founder Agreement after receiving feedback from alumni, and it prevents alumni that do not try to build a company within 2 year...
Mon, Mar 2, 2020 at 4:48 PM
Will the Founder Institute buy the warrant or option?
The Founder Institute does not intend to purchase the warrant or option until a liquidity event occurs with a greater value than the strike price, at which ...
Mon, Mar 2, 2020 at 4:57 PM
Where is the Founder Agreement to sign and upload?
Be sure to select your city in the top-right drop-down menu, and visit the Agreements page. When enrolling, you will be prompted to review and digitally sig...
Mon, Mar 2, 2020 at 4:48 PM
What is the exercise share price of the warrant/ option? How many shares are included?
The exercise price is the price-per-share granted via the Warrant. The share price is set by your investors during the first Qualified Equity Financing. As ...
Mon, Mar 2, 2020 at 4:58 PM
How do I upload the Founder Agreement to the Founder Institute web site?
First, try following the instructions below: Log in to Fi.co Click eSign Founder Agreement Scroll to the bottom of the page and click the 'Click...
Mon, Mar 2, 2020 at 4:49 PM
How is the 4% equity of the company determined? Is it a flat 4% or dilutable?
The warrant grants the Founder Institute 4% at the time of the first Qualified Equity Financing This 4% is fully dilutable over future rounds of investment....
Mon, Mar 2, 2020 at 4:58 PM