Comments on: The “FF class” of stock, for founders who want cash early http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/ News About Tech, Money and Innovation Mon, 23 Nov 2009 13:10:15 +0000 http://wordpress.org/?v=2.8.5 hourly 1 By: Series FF Stock | The Startup Lawyer http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-819217 Series FF Stock | The Startup Lawyer Wed, 02 Jul 2008 21:23:42 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-819217 [...] more background about the origin of Series FF stock, click here. Share this Post: These icons link to social bookmarking sites where readers can share and [...] [...] more background about the origin of Series FF stock, click here. Share this Post: These icons link to social bookmarking sites where readers can share and [...]

]]> By: The dry IPO market is creating demand for alternate liquidity » VentureBeat http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-818263 The dry IPO market is creating demand for alternate liquidity » VentureBeat Thu, 26 Jun 2008 19:48:50 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-818263 [...] insurance policy. We’ve separately heard that early Facebook employees have done just that. The company received funding from venture firm the Founder’s Fund, which offers a form of stoc... It’s possible that Facebook employees have been selling some of these so-called “Series [...] [...] insurance policy. We’ve separately heard that early Facebook employees have done just that. The company received funding from venture firm the Founder’s Fund, which offers a form of stoc… It’s possible that Facebook employees have been selling some of these so-called “Series [...]

]]> By: Mary http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-715962 Mary Fri, 04 Jan 2008 08:42:14 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-715962 I stumbled here by accident but will stick around! I stumbled here by accident but will stick around!

]]> By: What is Series FF stock? | Startup Company Lawyer http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-690454 What is Series FF stock? | Startup Company Lawyer Sat, 22 Dec 2007 08:48:09 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-690454 [...] the Series FF stock that has been advocated by the Founders Fund. Matt Marshall of Venture Beat reported on this invention in December 2006. See here for an Inc.com report in March 2007. Michael Martin [...] [...] the Series FF stock that has been advocated by the Founders Fund. Matt Marshall of Venture Beat reported on this invention in December 2006. See here for an Inc.com report in March 2007. Michael Martin [...]

]]> By: Neil http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-683986 Neil Tue, 18 Dec 2007 16:06:00 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-683986 Does this apply to UK stock aswell? Does this apply to UK stock aswell?

]]> By: VentureBeat » Founders Fund raises new fund, aims for more VC disruption http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-683482 VentureBeat » Founders Fund raises new fund, aims for more VC disruption Tue, 18 Dec 2007 10:34:04 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-683482 [...] that can be converted to preferred stock during following rounds of funding (more on FF stock, here). Preferred stock can let founders sell a portion of their stock while still running their [...] [...] that can be converted to preferred stock during following rounds of funding (more on FF stock, here). Preferred stock can let founders sell a portion of their stock while still running their [...]

]]> By: VentureBeat Wire » Philotic, a secretive politics social networking site, raises about $1.2M http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-7752 VentureBeat Wire » Philotic, a secretive politics social networking site, raises about $1.2M Fri, 26 Jan 2007 15:44:58 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-7752 [...] More details are leaking out about Sean Parker’s first investment on behalf of The Founders Fund. We mentioned the Berkeley company, called Philotic, here. [...] [...] More details are leaking out about Sean Parker’s first investment on behalf of The Founders Fund. We mentioned the Berkeley company, called Philotic, here. [...]

]]> By: FF Class Stock at Justin Lee’s Web 2.0 Blog http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-7425 FF Class Stock at Justin Lee’s Web 2.0 Blog Mon, 01 Jan 2007 06:05:19 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-7425 [...] This is an interesting article about a new “FF Class” of stock for founders who want to cash out early. The FF Class of stock is described as: [...] [...] This is an interesting article about a new “FF Class” of stock for founders who want to cash out early. The FF Class of stock is described as: [...]

]]> By: FF Class Stock - Partial Founder Buyout is Alive : Olson’s Observations http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-7333 FF Class Stock - Partial Founder Buyout is Alive : Olson’s Observations Wed, 20 Dec 2006 18:59:32 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-7333 [...] The latest innovation the Founders Fund has implemented is the idea of FF class stock. The basic idea is this: FF stock is convertible to any future class of stock during a new issuance of stock. Let’s say there is a new issuance of stock in a company due to a funding round. At that point the founders can convert their FF stock, if they choose, and sell it to investors. I am sure there is more legalese involved (a lot more no doubt) but that’s the basic idea (check out VentureBeat for more). [...] [...] The latest innovation the Founders Fund has implemented is the idea of FF class stock. The basic idea is this: FF stock is convertible to any future class of stock during a new issuance of stock. Let’s say there is a new issuance of stock in a company due to a funding round. At that point the founders can convert their FF stock, if they choose, and sell it to investors. I am sure there is more legalese involved (a lot more no doubt) but that’s the basic idea (check out VentureBeat for more). [...]

]]> By: jeremy liew http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-7285 jeremy liew Sun, 17 Dec 2006 22:56:35 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-7285 We're seeing more of this trend here at Lightspeed, especially with consumer internet companies since they take so little money to start. This has not been the case as much in other sectors. We've recently closed on one financing where founder liquidity was a portion of our investment (company had been in business 4 years) and are in the process of closing a second (company has been in buinsess 1 year). More on our blog - follow the link We’re seeing more of this trend here at Lightspeed, especially with consumer internet companies since they take so little money to start. This has not been the case as much in other sectors. We’ve recently closed on one financing where founder liquidity was a portion of our investment (company had been in business 4 years) and are in the process of closing a second (company has been in buinsess 1 year). More on our blog – follow the link

]]> By: Founder liquidity becomes more common « Lightspeed Venture Partners Blog http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-7284 Founder liquidity becomes more common « Lightspeed Venture Partners Blog Sun, 17 Dec 2006 22:55:47 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-7284 [...] Allan Leinwand did an interesting guest column on GigaOm yesterday about VC’s providing some founder liquidity at early rounds. This picks up on a Venturebeat story from Friday about a related topic, “FF” class stock that is deliberately designed to allow for partial founder liquidity. As Allan points out, this is also being driven by many consumer internet companies simply requiring less money to build - a trend that has been widely discussed. [...] [...] Allan Leinwand did an interesting guest column on GigaOm yesterday about VC’s providing some founder liquidity at early rounds. This picks up on a Venturebeat story from Friday about a related topic, “FF” class stock that is deliberately designed to allow for partial founder liquidity. As Allan points out, this is also being driven by many consumer internet companies simply requiring less money to build – a trend that has been widely discussed. [...]

]]> By: john http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-7276 john Sat, 16 Dec 2006 16:48:03 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-7276 As is often the case, we are all more than a year behind Paul Graham: http://paulgraham.com/vcsqueeze.html "If VCs are frightened at the idea of letting founders partially cash out, let me tell them something still more frightening: you are now competing directly with Google." As is often the case, we are all more than a year behind Paul Graham:
http://paulgraham.com/vcsqueeze.html
“If VCs are frightened at the idea of letting founders partially cash out, let me tell them something still more frightening: you are now competing directly with Google.”

]]> By: Mike Boich http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-7274 Mike Boich Sat, 16 Dec 2006 16:11:55 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-7274 The car story is actually predated by Woz, who old some Apple stock early to buy a car that was known (accurately I think) as "the $5M Porsche". The car story is actually predated by Woz, who old some Apple stock early to buy a car that was known (accurately I think) as “the $5M Porsche”.

]]> By: NewGuy http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-7273 NewGuy Sat, 16 Dec 2006 15:31:21 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-7273 This may be a simple solution but why not give the founders an employment bonus to take care of past debts and a decent salary to stay focused. This may be a simple solution but why not give the founders an employment bonus to take care of past debts and a decent salary to stay focused.

]]> By: Bradley Mazurek http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/comment-page-1/#comment-7267 Bradley Mazurek Sat, 16 Dec 2006 07:20:28 +0000 http://venturebeat.com/2006/12/15/the-ff-class-of-stock-for-founders-who-want-cash-early/#comment-7267 Andrew, I agree and disagree with you. I think there is a good possibility that this technique could be abused, but I also think that it goes a long way towards allowing the founder to focus more on the business. It reduces friction and attention necessary in other parts of the founder's life (ie, the personal side of life). If taking such money allows the founder to focus on the business instead of whether they can afford something in their personal life (think ordering in pizza versus making Kraft Dinner, or helping alleviate spousal disagreements due to financial hardship), I think it's a good thing. Andrew, I agree and disagree with you. I think there is a good possibility that this technique could be abused, but I also think that it goes a long way towards allowing the founder to focus more on the business.

It reduces friction and attention necessary in other parts of the founder’s life (ie, the personal side of life). If taking such money allows the founder to focus on the business instead of whether they can afford something in their personal life (think ordering in pizza versus making Kraft Dinner, or helping alleviate spousal disagreements due to financial hardship), I think it’s a good thing.

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