FundersClub experiments with the full-service online VC model at scale
TechCrunch
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March 8, 2017
Slowly disproving stereotypes, the online VC has established itself as a viable tool for tech finance. But while the model has made money for investors, the industry still faces perceptions of selling money for money’s sake, without much care for the nuanced entrepreneur-investor relationship.
Online Venture Capital Firm Makes Returns Public
Fortune
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Jan. 12, 2017
Over the past four years, FundersClub, an online venture capital firm, has invested in 217 companies. It has had 19 exits. Today the company published a quarterly breakdown of its returns in an effort to bring more transparency to venture capital performance, a historically un-transparent area.
Online VC FundersClub launches Network Search to better connect its 18,000 members
TechCrunch
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Oct. 20, 2016
Network effects in venture capital are no joke. Sure, people want to close rounds with brand name funds like Sequoia and Andreessen Horowitz because they validate startups. But perhaps more importantly, companies become more likely to succeed after closing high profile rounds because of their newfound access to the friends and connections of prominent investors.
WEEKEND READ: THE TROJAN HORSE OF ACCREDITED-INVESTOR VERIFICATION
Wall Street Journal
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Sept. 27, 2013
How does a pro-startup law, intended by Congress to remove restrictions on angel investing, turn into an SEC rule which causes entrepreneurs to second-guess pitch events, demo days and other fundraising practices they’d previously taken for granted?
Answer: By putting a ton of consequence on “general solicitation.”
NEW RULE ALLOWS STARTUPS TO OPENLY SOLICIT INVESTORS
Investor's Business Daily
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Sept. 23, 2013
Venture capital firms, angel investors, hedge funds and private equity groups also now can advertise to reach new investors. It's a potentially big change, but the impact is far from clear.
SEC ENDS BAN ON PUBLIC STARTUP PITCHES, BUT SOME REMAIN WARY
Silicon Valley Business Journal
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Sept. 22, 2013
FundersClub co-founder and CEO Alex Mittal said he has no plans to do anything differently with his 7,000-investor network in the near term. His network has backed more than 50 companies with $8.5 million in funding.
PUBLIC FUNDRAISING BY STARTUPS A POTENTIALLY HUGE DEAL
San Francisco Business Times
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Sept. 1, 2013
Alex Mittal, CEO of FundersClub, which sells accredited investors stakes in funds it invests in individual companies, said he has already seen “many instances where opportunities made available this week via general solicitation are being offered at double the price or more compared to what institutional investors (including FundersClub) are buying in at.”
EXCLUSIVE: FUNDERSCLUB CO-FOUNDER & CEO ALEXANDER MITTAL IS MAKING WAVES IN THE WAVE POOL
Bezinga
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Aug. 2, 2013
When the gears of thought push boundaries, a natural story of disruption unfolds.
Many eager college graduates looking to start a company have glowing ambitions aimed at a bright future filled only with success. Most end up disappointed when their great idea doesn't pan out, for whatever reason, and taste defeat far before the sweetness of victory. Others know their stuff. They don't just have lightning in a bottle, they aim at becoming Zeus. Some even have their own asteroids.
Alexander Mittal, co-founder and CEO of FundersClub, might be one of those individuals.
FUNDERSCLUB OFFERS BOUNTY FOR STARTUP REFERRALS
Upstart Business Journal
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July 21, 2013
In a move likely to boost its appeal to startups and investors alike, Funders Club will offer a venture capital-like reward to investors who refer startups to the platform.
REFER A STARTUP TO FUNDERSCLUB, GET PAID IF IT EXITS
TechCrunch
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July 19, 2013
Think you know about the hottest startups before anyone else? Online venture firm FundersClub wants you to be their eyes and ears, so they’re offering to give you 10 percent of their carry (profit) if a startup you refer to them has a big exit.
FUNDERSCLUB INVESTOR REACH WIDENS TO 6,000 PLUS
VatorNews
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June 11, 2013
FundersClub, a new online venture capital firm, has now crossed 6,000-plus investors on its platform.
For those not familiar with this Y Combinator-backed startup, it's an interesting milestone because the more investors, the higher probability of its ability to succeed. FundersClub is one of the newer VCs in the Valley, spearheading this old-yet-novel approach to fundraising by aggregating capital from hundreds of investors and putting them in individual "fund-like" vehicles to invest in startups.
SEC RECOGNIZES FUNDERSCLUB AS FIRST-EVER ONLINE VC
VentureBeat
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March 29, 2013
No action is good action. At least for the online investment platform FundersClub, which today received a “no-action letter” from the Securities and Exchange Commission stating that it will not recommend enforcement action.
FUNDERSCLUB IS FIRST SEC-RECOGNIZED ONLINE VENTURE CAPITAL FIRM
Y Combinator Universe
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March 28, 2013
FundersClub, from YC S12, is a web service that pools money from many individuals and institutions to make aggregated investments in startups. This business model makes it easier for startups to raise money by allowing individual investors to make smaller investments (as low as $1,000).
MEMBERS ONLY: NVCA ADMITS FUNDERSCLUB INTO ITS RANKS
Reuters
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Jan. 29, 2013
While venture capital funds innovation, the venture capital industry itself is not particularly innovative.
That’s why it’s a bit of a surprise that The National Venture Capital Association has admitted the FundersClub, an well-hyped, online-only funding network, into its ranks.
STARTUP GETS ITS OWN VENTURE CAPITAL
Wired
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Oct. 1, 2012
FundersClub just raised $6 million from a gang of expert early-stage investors, including First Round Capital, Felicis Ventures, Spark Capital, Digital Garage, Intel Capital, and Y Combinator-affiliated funds (Andreessen Horowitz, Start Fund, SV Angel, and General Catalyst Partners), along with a handful of angel investors.