Class FF Stock

Class FF stock is a hybrid form of equity that combines elements of both common and preferred stock. It allows founders to convert their shares into common shares or future preferred equity, enabling participation in future financing rounds. This stock type is common in startups undergoing multiple equity financing rounds, with specific limitations such as board approval and valuation-based conversion.

What is the significance of the board of directors in the conversion of Class FF stock?

In what scenarios is Class FF stock commonly used?