Our vetting process is thorough and moves quickly.
FundersClub vets companies before permitting them to be target investments for FundersClub funds. The FundersClub Investment Committee and the FundersClub Panel vet companies on a weekly basis to select companies that FundersClub believes will be attractive candidates for funds in which FundersClub members can invest. To date, fewer than 2% of companies are selected to launch on the platform. While the FundersClub team places an emphasis on vetting companies, investors should understand that all investments in startup opportunities are risky and illiquid. FundersClub does not advise any of its members to participate in a particular investment opportunity, and a loss of a member's entire investment is possible with any investment opportunity.
FundersClub members refer companies to FundersClub. If you are a member and you know of a company that you think would be a good fit for FundersClub, you can refer them using this form. We apologize that we cannot list most referred companies. In addition, companies are referred to FundersClub from the FundersClub startup network - FundersClub alumni companies, Y Combinator alumni companies, and others.
FundersClub has strategic deal flow partnerships with top VCs, angel investors, incubators, and accelerators to share deal flow, and many companies have been referred from these partners.
FundersClub looks for companies showing strong traction and growth, and spends time vetting metrics in these areas.
FundersClub vetting process emphasizes the strength of the founding team.
FundersClub focuses on companies addressing a big market.
As of the date of this posting, less than 2% of companies have made it through the vetting process of both the FundersClub Investment Committee and the FundersClub Panel.
After the FundersClub Investment Committee approves a company, a panel of investor members reviews the companies. The panel is comprised of active angel investors, tech company employees, and entrepreneurs.
The FundersClub Panel members review all company profiles on a weekly basis and provide their opinion as to whether the company should launch on FundersClub.
The FundersClub Panel may also ask the company questions that they would want to know before investing, which is used to further analyze a company before launching it to all members.
The FundersClub Panel will vet the company's proposed valuation and/or terms and determine if they would be likely to be accepted in the market before listing the companies. The views and determinations of the FundersClub Panel are non-binding.
The company founders work with the FundersClub team, and incorporate feedback from the Investment Committee and FundersClub Panel to build their profile on the FunderClub website.
Each fund is launched Preview Mode for a period of time before launching (typically ~1 week). Members can view the fund profile in its entirety during this period, they just can't invest yet. Members who add the fund to their Watchlist, by clicking the blue "WATCH" button in a fund's profile, will get early access to invest in the fund before other members and targeted updates related to the fund.
After a fund has been in Preview Mode for ~1 week, we then open up the fund for Early Access investment to the members who have added the fund to their Watchlist and members of the FundersClub Panel. These members will receive an email with an early access password that enable them to invest. We typically leave funds in Early Access for ~48 hours. After this period, the fund will launch live, member-wide.
After launching to Watchlist members and the FundersClub Panel members, the fund will normally launch to all members. Occasionally, funds listed in Watchlist mode must be removed from the FundersClub web site without launching to all members. This may be due to immediate oversubscription of the fund from Watchlist and FundersClub Panel members or due to other factors.