DISQUS

Michael F. Martin · 8 months ago

Any comment on how F is different from FF?

Yokum · 8 months ago

@Michael - Entirely different concept. Series FF enable founders to sell their stock in a venture financing. Class F stock allows founders to maintain control of a company.

startupcfo · 8 months ago

These terms could survive an angel round perhaps since angels and founders are aligned when it comes to the dilution they can experience from VCs over the life cycle. Still, I don't see any VC taking these. And I think almost any startup that uses them and approaches VCs will see the VCs walk away (even if they like everything else about the deal)

Ken Brabender · 5 months ago

Why would a company convert my Class A stocks to Class F stocks? Is there a benifit to me?

Yokum · 5 months ago

@Ken - Don't understand the question. Class F will generally be issued at incorporation. Class F can be converted to Class A, but not vice versa.

stuarteichert · 3 months ago

Yokum,
Let's say the founders capitalize their C corp by buying their class F common stock, but then 6-8 months later the company needs more money to continue operating. Should the founders simply loan the additional capital needed to the company via a promissory note (at reasonable interest, etc., etc.) or should they be buying additional class F common stock from the company? My gut says promissory note, but figured I should ask.

Yokum · 3 months ago

@stuart - Most founders loan the money to the company.

startup founder · 3 months ago

I'm planning to incorporate a c corp for my website venture. I'd like to use class F stock during incorporation. Can you tell me how I go about it? Where do I specify that my corporation uses class F stock?

Thanks!

Yokum · 3 months ago

@startup founder - the form of Class F certificate of incorporation is available on the TheFunded Founder Institute web site. You will need an experienced attorney to assist you as it is not a do it yourself project.

Anil · 3 months ago

AT the time of formation, how do you price Founder Class F Common Stock? Same as the $0.0001 per share that is typically the price paid by founders for common stock, or something higher? And, where we have Common F, ho wdo you price the Common A shares, $0.0001 per share?

Yokum · 3 months ago

@Anil - Theoretically, if issued on the same day, the Class F should be priced at higher than the Class A. The Class F is typically issued at some nominal price, like $0.0001 per share.