FundersClub Streamlines Platform Operations

FundersClub, an online venture capital platform providing access to early stage growth companies for accredited investors, has downsized and streamlined operations.  Crowdfund Insider recently heard some industry chatter regarding a culling of staff so we reached out to CEO and co-founder Alex Mittal for an update on the five year old platform.

Funders Club is interesting as it allows smaller, accredited investors the opportunity to invest in deals that are typically difficult to access. The platform boasts over 18,000 accredited investors. A quick trip to their portfolio and there are plenty of recognizable names and a good number of acquisitions.

Mittal told Crowdfund Insider they had, indeed, made a team change of late, Mittal stated;

“The change was all about doubling down on the ways that are working really well and cutting back on those that are not as efficient. We’ve grown our annualized investment volume by 400% over last year, and we’re proud of the incredible progress of our portfolio companies. This change is all about sustaining and accelerating that rapid growth and track record into the future.”

Asked if the reduction was based on a delayed funding round, Mittal said that was not the case. The cut backs were part of a strategic decision where they wanted increased efficiencies. Mittal drew a comparison to VC firms that have a sub $1oo million portfolio and a very small staff but this is a long game and they are just 5 years old;

“Our Mission is to use software and networks of people to fund the best startups anywhere … The most promising startups. We look at ourselves as an online VC.  Over that time we have learned a lot as to how to use software and networks. Sub 100 million [venture firms], you typically do not see a large team. We are in the business of venture capital.”

Mittal said they have kept core team members like engineering, design, and back office. He said Funders Club was stronger than ever and they are experiencing the most investment volume ever.

“You can expect to hear some great things from us in the coming weeks,” Mittal stated.

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