How does Founderfruit work?

1. Value of Founderfruits

1.1 Dependence on the startup's annual revenue between ERD and LRD

A Founderfruit is always worth at least €10. From a encashment period to be defined between ERD and LRD (Earliest and Latest Encashment Date), the coin value can exceed this minimum amount.

The value development of a Founderfruit depends on the annual revenue of the issuing startup. If the issuer's annual revenue exceeds a previously defined revenue threshold, the value rises in the same proportion as the annual revenue exceeds the revenue threshold.

Determining the revenue threshold results in a fixed percentage revenue share that a single coin certifies. This refers to the current annual revenue of the issuing startup. The value of a coin always corresponds to this revenue share, but at least €10.

Until the Earliest Encashment Date ERD, the value of a Founderfruit is €10 regardless of revenue development. After the Latest Encashment Date LRD, the value no longer changes. It then remains at the last determined value dependent on the startup's annual revenue at the Latest Encashment Date LRD until the Founderfruits are encashed for euros.

1.2 Determining factor is the annual revenue of the previous business year

The annual revenue that determines the coin value refers to the official business year of the issuing startup. Usually, this corresponds to the calendar year. Only in exceptional cases does a company's business year deviate from the calendar year.

The issuer must specify the beginning of their business year when minting their Founderfruits.

The value of Founderfruits is always redetermined on August 10th of each year. For the value of Founderfruits, the annual revenue of the business year last completed by August 10th of a year to be published on August 10th of a year is always decisive. The value of Founderfruits then remains unchanged for one year until August 10th of the following year.

The annual revenue must be regularly reported by July 31st of a year and documented using the annual sales tax return or income tax return as well as the corresponding tax assessment by the issuing startup.

If the issuer's business year ends between June 30th and July 31st, the business year that just ended is not relevant for value determination, but the preceding business year is decisive. On July 31st, the revenue of the business year that just ended does not need to be reported, but the annual revenue of the preceding business year must be submitted.

1.3 Formulas for value determination

1.3.1 Calculation of coin value between ERD and LRD

Value of a coin

1.3.2 Calculation of value-determining variables

Revenue share per coin

Revenue threshold

Revenue threshold based on minimum value

Minimum value per coin

Minimum value of all coins