Incubators and Funding for New Businesses

By Laura Duggan     Add your comments

The Founder's Institute offers incubators for new businesses with protection for the founders through their F-class stock.

New businesses are like babies: they need a safe and protected environment to be sure that they grow properly. The parents need to feel that their babies are getting the best  care, and that the parents are getting good information.

Shift this idea to new and innovative businesses and you have an incubator that revolves around the founder, or parent. This is the goal of the new Founder Institute, created by The Funded .They offer a four month program which includes training and mentoring, opportunity to fundraise, and shared equity.

Of course, it makes perfect sense. If you were a VC investing in a company, wouldn’t you want to be sure they headed in the right track? The Founder Institute just takes it the next step and does something about it.

However, the Founder Institute is unique compared to other incubators. According to their own write-up, they have a mission to protect founders from being exploited. They do this through their new Class F stock.

The Class F Stock
In their startup agreements, which the Founders Institute has made freely available on their website, they give 2:1 Board votes to Founders compared to other board members. They also give them 10:1 share votes compared common stock, and the shares vest monthly. The goal is that a founder could leave and the other co-founders wouldn’t be hurt. You can see the documents for this stock at their site.

Lots of good opportunities here for entrepreneurs who have a great idea, and are looking for the right incubator to bring their baby to maturity without giving it up for adoption. Check it out.

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