Ask the attorney: What the heck is Class F stock?
(Editor’s note: “Ask the Attorney” is a weekly VentureBeat feature allowing start-up owners to get answers to their legal questions. Submit yours in the comments below and look for answers in the coming weeks. Author Scott Edward Walker is the founder and CEO of Walker Corporate Law Group, PLLC, a boutique corporate law firm specializing in the representation of entrepreneurs.) Question : My buddy and I are launching a new venture, and we’ve read some articles on the web about incorporating in Delaware and other things we need to do from the legal side. One issue that came up that we don’t understand is Class F stock, which we read about on a couple of blogs. What is Class F stock and do you think we should be utilizing it? Answer : This issue has come-up quite a bit recently with a few of my new clients. “Class F” stock is a special class of common stock that was designed by The Founder Institute (with the assistance of Yokum Taku, a smart Silicon Valley lawyer) to protect founders.
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Ask the attorney: What the heck is Class F stock?
