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What is our process?

As a founder, your most valuable resource is your time. We are committed to completing the entire application and funding process in 7 hours or less of your time. Read more
1
Get in Contact
You are welcome to apply online, but have a much higher chance of getting an interview with our team via a warm intro from an active FundersClub member, or an existing FundersClub portfolio founder.
2
Initial Review
A member of our venture team will set up a time to speak with you to learn more about your company and walk you through our investment process. We aim to use this meeting to objectively and efficiently determine whether your business is a possible fit for the FundersClub portfolio.
3
Investment Committee Review
Upon passing initial review, we will schedule your review by the FundersClub Investment Committee. During this process, one or more partners will dive deeper into your business with you. We aim to get back to applicants within a week after this meeting to communicate whether we will be moving forward.
4
Profile Creation
We will work directly with you to create a profile summarizing your leadership, business model, and more, for review by the FundersClub Panel, a hand-selected group of trusted FundersClub portfolio investors.
5
Panel Review
We will share your profile with our Panel, who will work with our venture team to determine whether your startup is a good fit for FundersClub.
6
Fundraising
If you have reached this point, your company is among the top 2% of startups we review every year. Congrats! Once we have approved your company for investment, we will privately list a venture fund on our site and and make it available to our private community of investors. This fund will then invest in your startup. Our process enables the FundersClub investment to appear as a single investor on your cap table, while giving you access to the powerful network of individual investors who have backed your FundersClub fund.
7
Welcome to the FundersClub Portfolio
FundersClub will be an ongoing partner with your company, from seed stage to IPO. We are here to offer expertise, connections, advice, and follow-on capital to help you get to the next level. You are also now admitted to the elite, global community of FundersClub founders, an invaluable resource for many founders.
Fundraising FAQ
Does FundersClub charge founders or the company any fees for fundraising?

No. Like traditional VCs, we do not charge entrepreneurs for taking our capital. Typically 10%, or up to $25k (exact amount may vary by fund) of the capital pledged by FundersClub members is set aside in a fund. This administration capital does not go to FundersClub. It is used to cover the tax and legal fees associated with setting up a fund, and the ongoing operational costs of running the fund. This capital does not dilute your startup — for example, if FundersClub members pledge $250K, $225K is invested in your startup, and $25K is applied to the 10% administration fee. This is no different from fund expenses incurred by traditional VC funds.

FundersClub receives carried interest, or a percentage on the profits from an investment. We find that this method strongly aligns our interests with those of both our founders and investors, as we are not compensated unless there is a positive outcome for all parties.

Does FundersClub invest in companies that compete with one another?

As a general rule we try to avoid investing in companies that directly compete with one another. We do, however, invest in multiple companies within the same industry. To see which companies we have invested in, check out our portfolio.

How much do founders interact with individual FundersClub fund investors?

Entrepreneurs interact with FundersClub, but are not required to interact with individual FundersClub investor members. Members decide whether to invest in your startup based on FundersClub processes and the information shared in your online profile. Therefore, you will not need to engage in phone calls, emails, and meetings with individual investors during the fundraising process.

We facilitate a moderated Q&A process by collecting questions from investors and sharing them with founders in an aggregated and efficient manner (there are typically 10-15 questions from members throughout the fundraising process).

Following the investment, FundersClub distributes monthly and quarterly updates, comprised of information we receive from your company, to your fund investors. You remain in control of the information distributed to your fund investors within these updates. While we strongly believe in the value of sharing regular and complete updates, you can choose to withhold any information that should only be distributed internally within the FundersClub team, and not shared with fund investors. In these updates, you are encouraged to share ways the fund investors can help (e.g. through introductions to potential business hires, partners, customers, etc.)