What is Founders Foundation? How does Founders Foundation work? Who decides which charities to support once these stock options are converted to cash? Who decides when to convert the stock options to cash? What benefits do companies derive by becoming involved with Founders Foundation? Which companies should donate shares to Founders Foundation? How can my company support Founders Foundation? How does my company contribute stock options to Founders Foundation? How many shares or what Euro / GBP value is required from each participating company? Is it appropriate for young companies to give stock to an organization like Founders Foundation? Will companies be asked to give additional stock to Founders Foundation? What happens if a company never has a liquidity event and/or goes out of business? What is Founders Foundation? Founders Foundation, Children's Charity Venture Capital Fund aims to support charitable activities by sharing a portion of the wealth created by the regions’ technology sector with worthy charitable non-profit causes. How does Founders Foundation work? Founders Foundation receives donations of equity stock and stock options from private (and, to a lesser extent, public) companies. Once a company’s shares are liquid, Founders Foundation exercises the options and sells the shares, and allocates the proceeds of those donations to worthy non-profit causes in Europe. While not its focus, Founders Foundation also accepts and encourages cash donations. Who decides which charities to support once these stock options are converted to cash? Upon a successful exit, the original individuals who made the donation from the donor company will be encouraged to select a grant recipient or recipients from Founders Foundation's list of recommended projects (list is currently being prepared). This list will be comprised of organizations which Founders Foundation's grants committee has evaluated and visited, and which we feel confident in recommending for your support. Donors reserve the right to select any registered charity worldwide to donate to and these charities will be added to our official grantee list. Who decides when to convert the stock options to cash? Founders Foundation’s Board will decide when to convert the options the Fund has been granted and when to sell the shares. Generally, these options and shares will be liquidated at the earliest possible opportunity, in order to provide cash allocations to the not-for-profit organizations. What benefits do companies derive by becoming involved with Founders Foundation? Founders Foundation’s participating companies enjoy improved employee pride, morale and commitment, an advantage in recruiting and retention, improved corporate culture, increased visibility, and longer term, a stronger community in which to do business. And – the knowledge that they are helping to develop European society. Participants are also encouraged to participate in our periodic events and also have access to our electronic platform linking entrepreneurs with VCs and other members of the technology ecosystem. Join our online community now. Which companies should donate shares to Founders Foundation? All European high-technology companies are encouraged to support Founders Foundation. Our focus is on early-stage companies with the potential for high capital appreciation, and we generally approach such companies either through their venture capital investors or directly. Other companies are invited to contact us as well. We encourage North American companies to get in touch with Entrepreneurs Foundation in the Bay Area and TMURA in Israel. We are happy to facilitate introductions to EF or TMURA. How can my company support Founders Foundation? Venture capital firms, professional service organizations and others are encouraged to make cash grants to Founders Foundation's capital campaign to help finance the Fund’s ongoing operating expenses. (These expenses are being kept to a minimum, thanks in part to our generous pro-bono service providers.) See a current list of our supporters. How does my company contribute stock options to Founders Foundation? The process is very simple. All you need to do is ask your board to approve a board resolution granting the options and send us a copy of the warrant. Some companies may also need to adopt a small amendment to your company's articles of association. How many shares, or what Euro / GBP value, is required from each participating company? The number of shares varies with every company, but it is less than or equal to 1% of the outstanding shares (generally 0.5% - 1.0%). While no minimum number of shares is officially required, in order to make a significant impact upon a liquidity event, we request that you grant stock options a) equal to or greater than the number of options you would grant a senior engineer OR b) common stock valued at €50,000 (in the case of a very early-stage company) at the most recent investment price. Is it appropriate for young companies to give stock to an organization like Founders Foundation? Yes. As a small company, this is a very effective tool that can be used to leverage their community involvement and participate in something bigger. Will companies be asked to give additional stock to Founders Foundation? No. The up-front contribution they make is all that is required. Of course, if companies want to make additional contributions (perhaps in conjunction with future financing rounds) in order to minimize our dilution, this would be most appreciated. What happens if a company never has a liquidity event and/or goes out of business? These stock options will be worthless. We hope you will consider making a grant from your next, more successful, venture as well. If you have further questions regarding your contribution to Founders Foundation, please contact Pavlina Romans at +44 7976 846 878 or email her at pavlina [at] foundersfoundation.org (still email Pavlina at promans [at] hotmail.co.uk for now). |
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