FundersClub, an online venture capital firm, said on Tuesday that it has closed $1.1 million for its first fund dedicated to startup incubator and accelerator programs. According to FundersClub, a member of the National Venture Capital Association, 86 investors participated in the fund. Among the companies, which were selected by Y Combinator, a backer of FundersClub, to benefit from the funding, were CircuitLab, Goldbely, Medisas, Meldium, Padlet, Prizeo and Thalmic Labs. In addition to Y Combinator, FundersClub is also backed by First Round Capital, Spark Capital, Intel Capital, Andreessen Horowitz, Felicis Ventures, SV Angel, Tim Draper and others.
SAN FRANCISCO, CA–(Marketwired – Jun 11, 2013) – FundersClub (www.fundersclub.com), the world’s first online venture capital firm, today announces that it has closed its first theme-based fund, which is dedicated to top startup incubator and accelerator programs. The first fund to close in this “Accelerate Series” supports a selection of startups from Y Combinator’s Winter 2013 batch, with $1.1 million in capital invested by FundersClub on behalf of 86 fund investors.
This new fund gave accredited investors the sought-after opportunity to invest in startups that have benefited from selection and mentorship of Y Combinator, a prestigious accelerator program that has supported successful companies like Dropbox, Reddit, and Airbnb. Through FundersClub, $1.1 million was invested across 11 promising companies from Y Combinator’s Winter 2013 batch, including: CircuitLab, Goldbely, Medisas, Meldium, Padlet, Prizeo, Screenhero, Strikingly, Teespring and Thalmic Labs.
“Identifying and getting access to high-promise tech startups can be challenging for even the most seasoned Valley investors,” said Alex Mittal, CEO and co-founder of FundersClub. “We democratize that access for accredited investors, and in return, the FundersClub community of 6,000+ investors helps to fuel the success of the most up-and-coming companies and entrepreneurs.”
How FundersClub Works
FundersClub is the world’s first online venture capital firm, built around a unique online marketplace that allows accredited investors to become equity holders in FundersClub-managed venture funds. These funds are designed to finance high-potential private companies that have undergone extensive pre-screening and due diligence.
The FundersClub model transforms venture capital from offline firm to online platform. It gives investors unprecedented access to private, pre-screened investment opportunities, a more convenient way to invest, and the ability to diversify with relatively small amounts of capital. Funded companies receive larger, more consolidated infusions of capital and gain access to the FundersClub network. FundersClub investors are highly connected, accomplished, and experienced individuals in their respective industries who have a vested interest in helping the companies succeed not just with capital, but by opening doors for the startups with their aggregated connections and expertise.
Once a fund has closed on the platform, FundersClub’s management entity, FundersClub Management LLC, manages the payment and investing process and serves as the fund manager. Because FundersClub acts as the single point of contact between fund investors and the company, companies are spared the headache of coordinating a large group of investors — making group investments an attractive option for private companies.
The platform currently features early, mid- and late-stage private U.S. technology startups from Silicon Valley and beyond. The typical company listed on FundersClub is a startup with high growth, a large addressable market and a strong team. To date, the platform has invested more than $5 million in 25 companies and has more than 6,000 accredited investor members.
To become a FundersClub member or apply to receive FundersClub investment, visit www.fundersclub.com.
FundersClub is the world’s first online venture capital firm. A member of the National Venture Capital Association (NVCA), FundersClub is a venture capital advisor and is governed by the same legal structures as traditional venture capital firms. What distinguishes FundersClub is its unique online marketplace that allows accredited investors to become equity holders in FundersClub-managed venture funds, which then fund pre-screened, high-promise private companies. Each funded FundersClub startup benefits from the capital, the advice, and the professional networks of its associated venture fund investors, but are spared from the overhead of interfacing with a crowd of investors by receiving capital in a traditional venture capital fund format. Investors benefit from greater access to private investment opportunities, a more convenient investment process and the ability to diversify with relatively small amounts of capital.
Launched in 2012 by serial entrepreneurs and investors Alex Mittal and Boris Silver, the company is backed by top angels and VC firms, including: Y Combinator, First Round Capital, Spark Capital, Intel Capital, Andreessen Horowitz, Felicis Ventures, SV Angel, Tim Draper, and others.
FundersClub operates and manages all venture funds. All FundersClub members with access to investment opportunities have certified as accredited investors.