Warrant

What is a Warrant?
Similar to a stock option, a warrant is an agreement between two parties that gives one party the right to buy the other party’s stock at a set price, over ...
Tue, Mar 22, 2022 at 5:06 PM
Why Do I Sign a Warrant for Founder Institute?
The Warrant agreement can be viewed here. Our idea-to-exit support is made possible by sharing in the financial upside of our alumni.  More than just a ...
Tue, Mar 22, 2022 at 5:06 PM
Why a Warrant and not equity?
Warrants have a number of advantages over equity. Warrants ensure that any equity placed in the Equity Collective for the Founder Institute and other stak...
Tue, Mar 22, 2022 at 5:07 PM
Will you own 2.5% of my company right after graduation?
No, but maybe in the future, or possibly never.  The Warrant grants the Founder Institute 2.5% when the Warrant is activated.  This 2.5% is fully dilutable ...
Tue, Mar 22, 2022 at 5:07 PM
When is the Warrant activated?
The Warrant grants the Founder Institute 2.5% at the time of the first Qualified Equity Financing. There are two types of investments done by founders, ...
Tue, Mar 22, 2022 at 5:07 PM
What will future investors think about my Cap Table?
FI is not a shareholder of your company until the Warrant is exercised. Until the exercise of the Warrant, FI will appear on your capitalization table along...
Tue, Mar 22, 2022 at 5:07 PM
What if I bootstrap and don’t raise money from investors?
The Warrant grants the Founder Institute 2.5% at the time of the first Qualified Equity Financing, which is a minimum of $100,000 for outside capital or $25...
Tue, Mar 22, 2022 at 5:08 PM
Does Founder Institute have voting rights in my company?
Upon exercise of the Warrant, the Founder Institute would be a minority shareholder. It does not grant any board seats and voting rights would be limited.
Tue, Mar 22, 2022 at 5:08 PM
What happens if I drop out of the program?
If you drop out with more than 45 days left before Graduation, then you are not obligated to issue the Warrant. However, if you drop out with less than 45 d...
Tue, Mar 22, 2022 at 5:08 PM