Education Center

Getting Started

Why FundersClub

Learn more about FundersClub, the premier curated startup investing platform for diversifying across highly vetted startups. Who We Are

Sign Up and invest online

Review exclusive investment opportunities from Silicon Valley and beyond and complete and monitor your investments via the secure FundersClub website. We support online document e-signing, online payments (including electronic bank transfers, investing from your IRA, and more), and nurture a community of over 12,000 highly accomplished and connected accredited investors. Learn more

Monitor and analyze your portfolio through My Investments

FundersClub is the only online startup investment platform that provides you access to a comprehensive, transparent dashboard of your portfolio of investments through the My Investments feature. Stay abreast on everything from your level of diversification to your estimated unrealized returns, and download end-of-year tax documents. You can read more about the My Investments feature in our Help Center here.

Invest Online: Key Steps

Sign Up and verify your accredited investor status

Only accredited investors may invest in opportunities listed on the FundersClub platform. When you sign up to become a member of FundersClub, you will be asked to take a brief survey to verify your accredited status prior to gaining investment access. Accreditation is based on net worth and/or income. Sign up now to verify your accreditation. It only takes a few minutes and is free of charge.

Browse Investments

FundersClub offers a variety of vetted investment opportunities which change weekly and which you can review at a glance from the main Browse Investments page. These include multi-company funds (which target investments in multiple startups) and single-company funds (which target investment in a single startup). Fewer than 2% of reviewed startups qualify for investment as FundersClub Partnership deals.

Review fund profiles

Click on any fund profile to review fund/company information in greater detail, to access Q&A, and to invest.

Click the Invest button to checkout

FundersClub is an online investing platform. You can easily and securely e-sign docs, pay online, and checkout via the web site by clicking the Invest button.

Monitor and analyze your portfolio through My Investments

Once you have completed all steps in the Investment Confirmation Portal, your investment is complete. Your completed investments appear in the My Investments dashboard, which provides you access to a comprehensive, transparent overview of your portfolio. FundersClub is the only online startup investing platform to provide this feature to its members. Stay abreast on everything from your level of diversification to unrealized returns. You can read more about the My Investments feature in our Help Center here.

How do I start investing with FundersClub?

Learn more about making your first investment here. It’s easy to get started.

How does FundersClub choose companies?

Unlike all other online startup investing platforms, FundersClub is extremely selective and focuses on only the highest-promise, technology-enabled startups from Silicon Valley and beyond. Fewer than 2% of startups that we review are curated for investment by both an internal Investment Committee and a network-assisted Investment Panel, comprised of experts in venture investing, business, technology, and finance. We typically seek tech-enabled startups with strong management, exhibiting early but substantial product-market fit and addressing large multi-billion dollar markets. Learn more about our vetting process.

What returns can I expect?

A FundersClub member investing equally across all of our investments would have yielded a net unrealized IRR of 104.8%*. However, investing in startups and small businesses is risky. Each year, many companies in the US go out of business due to changing market conditions, unforeseen challenges, and other problems. FundersClub funds invest in high-risk opportunities and may not retain their value. If a business in which a fund owns stock goes out of business, your ownership interest in such fund will lose all value. While there are no guarantees that this strategy will reduce your risk, some investors choose to address this risk by practicing portfolio diversification. That is, investing in smaller amounts and spreading their investment across a larger number of different opportunities, which also helps them to support a broader number of entrepreneurs.

[*]A FundersClub member investing equally across all available investments would have, net of administrative costs and carried interest, an unrealized annual net rate of return (“Unrealized Net IRR”) on their portfolio of 104.8% for the period from FundersClub’s launch on July 25, 2012 through January 20, 2015. This data speaks only as of the date hereof, and FundersClub disclaims any obligation or undertaking to provide updates or revisions to reflect any change in its expectations or returns.

The stated IRR is unrealized and based solely on our own estimate of the current value of our fund investments; was not provided or verified by the companies or third party valuation; and does not represent actual return of capital or gain to FundersClub members. Our methodology for determining the unrealized IRR is described in the following link: https://fundersclub.com/blog/2015/03/04/fundersclub-partnership-returns-data-jan-20-2015-update/. The actual return outcomes for investments are highly uncertain and may, in the end, be significantly lower than the stated unrealized IRR. Additionally, our past performance is not indicative of future returns, so we can’t provide assurances that comparable returns individually or in the aggregate will be achieved by any current or future FundersClub fund.

Disclosure: Investing in startups carries a high degree of risk. In general, financial and operating risks confronting both early and developmental-stage companies, as well as more mature expansion-stage companies are significant. Many emerging growth companies go out of businesses every year. It is difficult to know how companies will grow, if at all, or what changes may occur in the market. A loss of an investor’s entire investment is possible and no profit may be realized. Investors are responsible for conducting their own due diligence.

When do I see my realized return?

Private company securities are illiquid and not publicly traded on exchanges or markets. You will not receive a return on your investment until the fund makes a distribution of cash or securities to you following a liquidity event with respect to the securities owned by the fund in which you are invested. A distribution typically occurs either because the company has been acquired by another company or because the company undergoes an initial public offering of its stock on NASDAQ, NYSE, or other exchange. It can take 4-7 years (or longer) from initial investment to see a distribution of this sort, as it takes years to build companies. In many cases, there may not be a distribution at all.

What are the fees associated with the funds?

Please visit the fees section for an overview of fees.

How do I track my investments?

FundersClub is the only online startup investment platform that provides you access to a comprehensive, transparent dashboard of your portfolio of investments through the My Investments feature. Stay abreast on everything from your level of diversification to your estimated unrealized returns, and download end-of-year tax documents. You can read more about the My Investments feature in our Help Center here.

What’s the average check size that members invest?

While they all have certified as accredited investors, FundersClub members include a range of investor types. Some members invest at or near the fund minimums (starting at $3,000 per fund), while others are able to invest at much higher levels. The average check size on FundersClub has continued to rise over time and is currently many multiples of our minimum. Because any given startup investment carries high risk (even if it was highly vetted), we encourage members to learn about Diversification

What happens if a fund is oversubscribed?

FundersClub has instituted a fair and unbiased process to account for situations of over-demand for a given fund. You can read more about our waitlist process here.

Do I get diluted by follow-on rounds?

Follow-on rounds occur when the company holds a subsequent round of funding and issues additional shares. This issuance will dilute the relative percentage ownership of all existing investors (including FundersClub) if they do not participate in all follow-on rounds. If follow-on rounds continue to occur at higher valuations than previous rounds (“up-rounds”), even if the relative percentage ownership declines through non-participation, the value of the holding will continue to appreciate. If follow-on rounds occur at a lower valuation than previous rounds (“down-rounds”), anti-dilution provisions may, but do not always, kick-in to partially protect shareholders from onerous dilutive effects.

FundersClub seeks pro-rata rights and to make available investment in follow-on rounds to FundersClub members whenever possible. However, as is typical in the venture capital industry, pro-rata rights are not always negotiable and follow-on investment cannot always be made available to existing investors.

How do I refer companies to FundersClub?

FundersClub highly values the startup referrals of active members of the FundersClub community. If you have made one or more investment on FundersClub, you can refer high-promise startups using this online form.

If you are not an active member of FundersClub, please direct the founders to apply online at fundersclub.com/founders