Enrollment Begins at Founder Institute After Inaugural Class Completes Training
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students in India, and enables students to express, explore, and engage with fellow students on campuses throughout India.
—XBand Technologies, which is developing innovative ways of using smartphones in sporting applications. The company is currently prototyping and testing a consumer electronics device for cyclists that provides nutrition, hydration, and performance monitoring tasks.
The 39 percent dropout rate reminds me of my first wide-eyed day of journalism school, when we were herded into a hallowed auditorium and told to look to our left and right, because one out of every three students wouldn’t make it to graduation the following spring.
“Some people came in with an idea, and they found out that they weren’t really ready, and so they left to develop their idea some more and then return,” Jacobson says. “Some people decided they didn’t want to give up 3.5 percent of their startup to the Founder Institute, and so they opted to go their own way.”
The Institute requires participants to give warrants equivalent to a 3.5 percent stake in any company that is formed by a founder during the program. The warrants give the Institute an option to buy stock at a fair market price, and the price is not set until the company raises its first qualified round of financing. The Institute says it distributes most of the value generated by the warrants back to the program, mentors, and other founders.