Yes. About two-thirds of the way through the program, not at enrollment, founders pledge 2.5 percent of future equity to the Equity Collective as a warrant: 0.5 percent to mentors, 1 percent to local leaders, 1 percent to FI. It activates only at a qualified equity financing of $100,000 or more from outside investors ($25,000 if you join a qualifying program such as Y Combinator after graduating), carries no board seat or voting rights, is not a revenue share, dissolves if the company fails, and 60 percent of returns go back to the local ecosystem that helped you. Bootcamps have no equity component. How the Equity Collective works.

All program agreements are public at fi.co/agreements, including the Entrance Agreement, the only document you sign to enroll, and the Warrant you sign later in the program. Both are summarised in the Equity Collective section below.

If the company is incorporated with an acceptable legal structure, then the company only needs to issue the warrant or option with the help of a law firm, or professional firm. Otherwise, the legal partner needs to work with the company to transition an incorrect structure to the proper structure as part of the engagement.

The Founder Institute does not accept partnership and LLC formats because these companies are not optimal for issuing shares and raising capital.

The Entrance Agreement is the only agreement you need to sign to enroll in the FI Agentic Program. The Entrance Agreement outlines the basic terms and provides basic protections for both Founders and the Founder Institute, including protecting your confidential information.

You can see all of the agreements at FI.co/agreements.

Yes. If you completed your enrollment to the FI Agentic Program before February 2, 2022, then you would have signed 'Terms and Conditions' that included details on the old (4%) Equity Collective. To make the Equity Collective more accessible, we reduced it to 2.5%, so you will need to sign the Entrance Agreement with those details.

Yes. As per clause 1.A.i, if you drop out before the "Kickoff" session you can receive a full (100%) refund. If you drop out before the third session (Oct 29, 2026), you are eligible for a 75% refund of the Entrance Fee.

No. About 2/3 the way through the Agentic Program you will be asked to sign the Warrant, which is when you will join the Equity Collective. As per clause 1, you can drop out with up to 45 days left before the last scheduled program session (Graduation) without committing to joining the Equity Collective. You will receive several reminders for this deadline in the Agentic Program.

No, so long as you drop out from the program with 45 or more days left before Graduation. You will receive several reminders for this deadline in the Agentic Program. As per clause 2.D - if you drop out with less than 45 days left in the program, then you are contractually bound to issue the Founder Institute a Warrant in accordance with the Entrance Agreement. This policy prevents someone from cheating the system by leaving the program at the very end, thereby purposefully and maliciously avoiding the Equity Collective and cheating their Local Leader, Mentors, and the Founder Institute. As of March 2026, FI has pursued this clause only 7 times in our 17 history.

No. In the program you will form a new company, or assign an existing company, as the "Portfolio Company" if you choose the join the Equity Collective. Clause 2.C in the agreement is designed to protect FI, the Local Leaders, and the Mentors in the case that someone forms a new entity, or transfers assets to an alternative entity, with the clear and malicious intent to circumvent the obligations of this agreement. As of March 2026, FI has pursued this clause only 3 times in our 17 history.

Collateral Security provides FI with a reasonable way to recoup damages if a Founder disregards their obligations under the agreement. This clause (3.D) is relevant only if a Founder does not abide by the terms of the agreement. If a Warrant is validly issued, the Collateral Security is cancelled.

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.

You are not required to join the Equity Collective to participate in the program, but you must join the Equity Collective to Graduate from the program and receive our post-accelerator benefits. About 2/3 the way through the Agentic Program you will be asked to sign the Warrant, which is when you will join the Equity Collective. As per clause 1, you can drop out with up to 45 days left before the last scheduled program session (Graduation) without committing to joining the Equity Collective. You will receive several reminders for this deadline in the Agentic Program.

Of the 2.5% companies contribute: 1% goes to your Local Leaders, 0.5% goes to Mentors in your program (with their individual portion of this 0.5% dependent on their participation and ratings from Founders), and 1% goes to FI HQ. 60% of the Equity Collective distributions go back to your local community. Individual checks are sent to all stakeholders associated with that company's distribution.

When a founder achieves a liquidity event, such as selling their business or going public. Founder Institute may also try to make a distribution near the Equity Collective’s 15-year expiration if it will benefit the stakeholders.

Examples of liquidity events include an Initial public offering (IPO), Acquisition, Buyout, and Secondary offering.

No.

No.

No.

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 a specified period of time. Once a warrant holder exercises their warrant, they get shares of stock in the issuing party’s company. Additional information can be found here.

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 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.

Warrants have a number of advantages over equity

1. Warrants ensure that any equity placed in the Equity Collective for the Founder Institute and other stakeholders is priced by the market. We don't give your company a valuation - you will determine the valuation of your business with investors if you raise funding, or by an acquirer if you sell the business.
2. Warrants are a convertible instrument and do not give the Founder Institute any decision-making power.
3. Typically, the Founder Institute becomes a shareholder simultaneously with an exit event.

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 over future rounds of investment. If the Warrant is not activated, we do not own shares in your company.

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, either a convertible investment or an equity investment. The Warrant only matters with respect to a Qualified Equity Financing, which is defined as any equity investment for $100,000 USD or more completed by external investors - people other than the founder or founders themselves. If you join a qualifying startup program, such as YCombinator, after graduation from the Founder Institute program, a Qualified Equity Financing is defined as any equity investment for $25,000 USD or more. The Founder Institute maintains a list of qualifying startup programs.

The Founder Institute does not intend to purchase the Warrant until a liquidity event occurs with a greater value than the strike price, at which point FI will purchase the Warrant to return value to the Equity Collective.

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 alongside other convertibles, such as SAFE notes and convertible debt notes. FI will be the only entity on your cap table in relation to the Warrant.

Upon exercising the Warrant, the Founder Institute would become an official common shareholder for easy corporate housekeeping, but the contractual allocation distributes returns from the Warrant as indicated by the Equity Collective.

Hundreds of founders have raised capital with the Founder Institute Warrant in place. Most investors are used to investing in companies with Warrants or options present.

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 $25,000 through an additional accelerator program. The Qualified Equity Financing must also be considered a priced round, meaning a valuation and subsequent stock price is assigned to your company. If you raise money outside of a priced round, such as a SAFE or convertible note, the Warrant is not exercised.

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.

If you drop out with more than 45 days left before Graduation, then you are not obligated to issue the Warrant.

The information 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.

We have had many successful cases of Founders that go through the program to receive valuable feedback from mentors even while they have already had an incorporated company. If the company is incorporated with an acceptable legal structure, then the company only needs to issue the warrant or option with the help of a professional law firm. Otherwise, the legal partner needs to work with the company to transition an incorrect structure to the proper structure as part of the engagement.

The Founder Institute does not accept partnership and LLC formats because these companies are not optimal for issuing shares and raising capital.

No. At approximately 2/3 of the way through the Founder Institute program, you will be asked to sign the warrant or option agreement for the company you are building in the program.