FundersClub was launched five years ago this month. Designed to be an online marketplace providing access to compelling early stage investment opportunities. An accredited investor only platform, the VC hybrid strategy provided a larger “crowd” the option to participate in a good number of high profile startups.
Investing in early stage companies is not for the impatient. Many companies will stumble or fail but a few will do well and, hopefully, provide a good exit opportunity where early investors benefit from taking on the risk. So how has FundersClub done since 2012?
Here are some bullets culled from the FundersClub web site:
- Since platform launch, 20 portfolio companies have been acquired
- Companies funded by FundersClub first have received over $2 Billion in follow on funding from many big name VCs like Sequoia, Andreessen Horowitz, KPCB and more
- $90+ Million has been invested via the FundersClub platform into 247 startups
- Average investor kicks in $10,857 per deal and average investment by FundersClub into startup is just under $300,000
- Net estimated IRR
- for 2012 Vintage currently at 21%
- for 2013 Vintage currently at 40%
- for 2014 Vintage currently at 8%
- Less than 2% of reviewed companies are listed on FundersClub
- 18,108 Accredited Investors have participated on the platform
- IT and Fintech are hot sectors on the platform
FundersClub recently went through a slimming process as it reorganized its team and streamlined operations. In the scheme of things, FundersClub is quite small. But if returns hold and good exits continue to materialize that is good for investors and thus the platform.