PALO ALTO, CA--(Marketwire - Oct 19, 2012) - FundersClub (www.fundersclub.com), the premier marketplace for private investing, today announced that it has closed a significant round of seed funding from leading venture capital firms and individual investors. A new type of venture capital platform, FundersClub has created a unique online marketplace that allows accredited investors to become equity holders in FundersClub-managed venture funds designed to fund pre-screened private companies. Deserving companies get larger, more consolidated infusions of capital, and FundersClub members get unprecedented access to, and visibility into, attractive opportunities otherwise closed to them, along with a more convenient way to build a diversified investment portfolio.
"$560 billion in capital is sidelined every year because the current investing system makes it extremely difficult for individuals and smaller institutional investors to finance private companies," said Alex Mittal, CEO and co-founder of FundersClub. "We're infusing efficiency and progress into the private investment community by offering the world's first platform approach to the venture capital model."
A network of individual and institutional investors contributed to this round of funding. Institutional investors that participated in this round include: First Round Capital; Y Combinator; Draper Associates; Felicis Ventures; Spark Capital; Digital Garage; Intel Capital; Y Combinator-affiliated funds (Andreessen Horowitz, Start Fund, SV Angel, and General Catalyst Partners); Investmon Sàrl; NetPrice; Global Venture Alliance (GVA) and Plug and Play Tech Center.
Individual investors who participated in this seed round include: Founder Collective Partner Chris Dixon; Box CEO and Co-Founder Aaron Levie; Silicon Valley investor Pejman Nozad; Facebook Vice President of Business Development and Monetization Dan Rose; Milo Founder and Director of Local at eBay Jack Abraham; and former Yahoo! Chief Technology Officer Farzad (Zod) Nazem. Funds raised will go towards expanding the FundersClub community and platform.
"The concept is elegantly simple. Take a cumbersome and complex offline process and bring it online," said Josh Kopelman, partner at First Round Capital. "By democratizing the fundraising process, FundersClub breaks down the biggest barriers that private companies face -- access to capital and connections to the right people. It's the perfect example of the transformative effects that the Internet can have on traditional industry."
FundersClub takes many of the obstacles out of investing by combining trusted decades-old industry standards, with an easy-to-use web-platform that allows FundersClub members to browse and screen investment opportunities, view investment profiles and sign legal documents -- all directly through the site. Furthermore, because of the lower minimum investment sizes, FundersClub members are able to more readily build a diversified investment portfolio. All FundersClub members with access to investment opportunities have certified as accredited investors.
The platform currently features early, mid and late-stage private U.S. technology companies from Silicon Valley and beyond. The typical company listed on FundersClub is a startup with high growth and reputable teams.
For more information on FundersClub please visit: http://www.fundersclub.com.
FundersClub is a new type of venture capital platform, built around a unique online marketplace that allows accredited investors to become equity holders in a FundersClub-managed venture fund -- which then funds pre-screened, private companies.
The platform combines industry-standard venture funds, with an easy-to-use web-platform that allows members to browse and screen investment opportunities, view investment profiles and sign legal documents. The result -- deserving companies get the capital they need, and FundersClub members get unprecedented access to the opportunities they want and the ability to build a diversified investment portfolio.
FundersClub operates and manages all venture funds. All FundersClub members with access to investment opportunities have certified as accredited investors. For further details about how FundersClub works, please visit: http://www.fundersclub.com/site/howitworks.