TheFunded.com, a site that lets entrepreneurs rate venture capitalists, has released documentation for a new class of common stock called “Class F,” which it says entrepreneurs can use to give them more control versus the venture capitalists who invest in them.
Working closely with an attorney Yokum Taku at Wilson Sonsini, a top Silicon Valley law firm, TheFunded has issued the documents for entrepreneurs to use as templates for agreements when they form their company and take venture capital. The stock class has also been dubbed “common stock to protect founders.”
Working closely with an attorney Yokum Taku at Wilson Sonsini, a top Silicon Valley law firm, TheFunded has issued the documents for entrepreneurs to use as templates for agreements when they form their company and take venture capital. The stock class has also been dubbed “common stock to protect founders.”
The control system in the Venture Capital business model is becoming increasingly sophisticated. Now, the times when an entrepreneur like Johan Gutenberg could be bankrupted by his investors look very distant indeed.
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