HOW FUNDERSCLUB SELECTS COMPANIES

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 3% 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.

STEP 1: INTRODUCTION
STEP 2: COMMITTEE
STEP 3: PANEL
STEP 4: LAUNCH
DEAL FLOW PARTNERS

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 NETWORK

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 to referral@fundersclub.com. 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 WEBSITE

Some companies reach out to the FundersClub team directly to apply as a startup. If you are interested in applying, please email listing@fundersclub.com. We apologize that we cannot list most applying companies.

TRACTION AND GROWTH

FundersClub looks for companies showing strong traction and growth, and spends time vetting metrics in these areas.

FOUNDING TEAM

FundersClub vetting process emphasizes the strength of the founding team.

ACCEPTANCE RATE

As of the date of this posting, less than 3% of companies have made it through the vetting process of both the FundersClub Investment Committee and the FundersClub Panel.

BIG MARKET

FundersClub focuses on companies addressing a big market.

VETTING PROCESS

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.

FUNDERSCLUB PANEL MEMBERS

After the FundersClub Investment Committee approves a company, a panel of investor members reviews the companies. The panel is comprised of active angel investors, VC investors, tech company employees, and entrepreneurs.

VALUATION

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.

QUESTION AND ANSWER

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.

WATCHLIST MODE

Each fund is launched in “Watchlist” mode (also called “Preview” mode) for a period of time before launching. Members who add the fund to their Watchlist get early access to invest in the fund before other members and targeted updates related to the fund.

COMPANY PROFILE

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.

FUND LAUNCH

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.