How does the Bonus Pool work? I Don't understand the Bonus Pool Equity Allocation.
Silicon Valley is a collaborative ecosystem, where people of all skill sets, backgrounds, and experiences share ideas, best practices, metrics, and feedback. Why? Because helping each other and sharing expertise leads to faster iteration, more efficient innovation, and faster market growth.
To create and foster a similar collaborative culture in markets across the globe, the Founder Institute employs a unique Shared Liquidity Pool where everyone shares equity in the companies formed from each semester. Here's how it works - each Graduate contributes 3.5% of their company equity in Warrants to a 10-year Bonus Pool with other peers from the current semester. When a liquidity event occurs, the returns for each cohort are then distributed as follows:
- 30% goes right back to the program Graduates, split evenly.
- 30% goes to the program Mentors, and each Mentor's individual share is based solely on anonymous ratings received from the Graduates. This incentivizes Mentors to take an active role in each cohort's success.
- 25% of the Pool Returns go to the Local Program Directors for their efforts in organizing, building, and running the local semester.
- 15% of the Pool Returns go to the Founder Institute, which provides operating capital for the business.
The Founder Institute is committed to building local startup ecosystems, and when one Graduate succeeds, the local cohort receives the vast majority of the upside.
More information here - fi.co/about