FundersClub Seeds Fellow Y Combinator Alum
FundersClub (www.fundersclub.com), the world's first online venture capital platform, today announced that it has completed a number of investments -- bringing the total invested by the less than 5-month-old, revolutionary investment platform to $1.3 million.
Coinbase, a wallet for the digital, decentralized currency bitcoin; Sponsorfied, a marketplace for sponsorships; and Tracks.by, a company that creates marketing campaigns between brands and artists around the world; join social video advertising startup Virool and FundersClub itself as the first group of FundersClub-funded startups. All hail from the Y Combinator Summer 2012 batch.
"Having gone through the Y Combinator rigors ourselves, we know the program selects and nurtures solid entrepreneurs, and those we've selected to invest in bear that prediction out," said Alex Mittal, CEO and co-founder of FundersClub. "We're thrilled to see the model catch fire so quickly, and look forward to working closely with these and other deserving companies as a trusted investor and advisor."
Transforming venture capital from firm to platform, FundersClub has created a unique online marketplace that allows accredited investors to become equity holders in FundersClub-managed venture funds designed to finance pre-screened private companies. As a result, deserving companies get larger, more consolidated infusions of capital from venture funds consisting of accredited investors, and access to a highly connected and experienced group of individuals with a vested interest in helping the company succeed via introductions, advice and other value-added assistance.
"FundersClub is much more than a source of capital, it gives us the ability to connect with valuable partners," said Baldwin Cunningham, co-founder of Sponsorfied. "Right after our fund closed on the platform, one of the fund investors reached out and offered us amazing resources. There is really nothing that compares."
"The biggest asset in any business is its people," said Alex Debelov, Virool co-founder and CEO.
"You either want to hire the best people or get them involved as investors. FundersClub allows entrepreneurs to get some of the brightest people involved with their startup, which can dramatically impact its later success."
The $1.3 million invested by FundersClub includes five separate funds, each created to finance a single company. Those funds include: the Coinbase fund, which raised $165,785 from 31 investors; the Tracks.by fund, which raised $87,500 from 28 investors; the Sponsorfied fund, which raised $98,400 from 29 investors; the Virool fund, which raised $509,800 from 70 investors; and FundersClub's own fund, which raised $463,801 from 85 investors.
"FundersClub made fundraising a breeze," said Brian Armstrong, founder and CEO of Coinbase. "The angel investors in its network were much more willing to write checks at our stage, and could easily complete all the paperwork online. This is how fundraising should be."
FundersClub reviews each prospective company via an internal Investment Committee, comprised of VC and angel investors, entrepreneurs, and operators, to confirm the company meets criteria for listing; and by the FundersClub Angel Panel, a member-driven vetting group, to assess community demand. Since FundersClub's launch in late July of this year, this process has filtered hundreds of referred companies down to 15 to raise funds via the platform. Coinbase, Sponsorfied, Tracks.by, Virool, and FundersClub itself were part of the first group of companies to be funded by the platform.
"FundersClub gives us great access to smart capital -- adding a powerful network and rich resources to the seed money they've invested," said Matt Schlicht, co-founder of Tracks.by.
"Being able to open and close a fund so quickly -- with great access to high-powered, well-connected individuals from the Valley and beyond -- while keeping a single point of contact, is so different from other models for fundraising."
FundersClub's management entity, FundersClub Management LLC, manages the payment and investing process and serves as the fund manager for each of the five funds it has closed thus far. The FundersClub-managed venture fund receives and holds investor funds, makes the investment, holds and votes on the stock or holds the convertible note securities, and provides other venture capital advisory services. Because FundersClub acts as the single point of contact between fund investors and the company, companies are spared the headache of coordinating a large group of investors -- making group investments an attractive option for private companies.
The platform currently features early, mid- and late-stage private U.S. technology companies from Silicon Valley and beyond. The typical company listed on FundersClub is a startup with high growth and a reputable team.
To become a FundersClub member or apply to receive FundersClub investment, visit http://www.fundersclub.com/
About FundersClub
FundersClub is the world's first online venture capital platform. It is built around a unique online marketplace that allows accredited investors to become equity holders in FundersClub-managed venture funds, which then fund pre-screened private companies. Each funded FundersClub startup benefits from the capital, the advice, and the professional networks of its associated venture fund investors, but are spared from the overhead of interfacing with a crowd of investors by receiving capital in a traditional venture capital fund format. Investors benefit from greater access to private investment opportunities, a more convenient investment process and the ability to diversify with relatively small amounts of capital.
Launched in 2012 by serial entrepreneurs and investors Alex Mittal and Boris Silver, FundersClub aims to create prosperity and transform people's lives by supporting innovation. The company is backed by top angels and VC firms, including: Andreessen Horowitz, First Round Capital, Tim Draper and more.
FundersClub operates and manages all venture funds. All FundersClub members with access to investment opportunities have certified as accredited investors.
To learn more about FundersClub visit http://www.fundersclub.com/
For further details on how the platform works visit: http://www.fundersclub.com/site/howitworks
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