Since 2009, the Founder Institute has utilized a unique "Equity Collective" model to align financial incentives and ensure long term support for our Alumni throughout the entire lifecycle of their business.
More than just a series of classes, FI is invested in your success and your community's success by literally aligning our business model with your company's achievements for the long term.
About 2/3 of the way through each program, companies pledge 2.5% of their future equity in the form of a Warrant.
From that 2.5% share, any future financial returns from a liquidity event (for example, an IPO or acquisition) are distributed back to those who helped you, with the majority returned to your local ecosystem to support local growth.
There are several benefits to the Founder Institute's Equity Collective model.
Build a Large Support Group
Support Your Community
No. If you apply and are accepted, you only need to sign the "Entrance Agreement" to start the program. Joining the Equity Collective takes place about 2/3 the way during the Core Program (Oct 18, 2023 for the Washington DC Fall 2023 cohort).
The agreements can be found on our Agreementspage. You may have localized agreements in place for your specific country.
No. The Equity Collective is in no way a profit or revenue-sharing mechanism.
Absolutely not. The Equity Collective is designed to share in the success in your business over the long term, and if your company fails or closes then the warrants in your company simply get dissolved.
Absolutely. Most chapters work with local legal firms who are well versed in our agreements and can walk you through the process. You are welcome to work with your own legal team to review the documents. We also provide localization of some agreements so they apply to your specific country.
Please visit our FAQ page for detailed information about the Equity Collective and the Warrant. Want to talk to someone directly? Attend a live Info Session call or chat with our Admissions Support Team.
The Founder Institute is the world’s most proven network to turn ideas into fundable startups, and startups into global businesses. Since 2009, our structured accelerator programs have helped over 6,500 entrepreneurs raise over $1.75BN in funding. Based in Silicon Valley and with chapters across 95 countries, our mission is to empower communities of talented and motivated people to build impactful technology companies worldwide.