FundersClub’s VC crowdsourcing platform has finally realized a return with the closure of five different investments that add up to a total of $1.3 million in funding.
FundersClub is a 5-month old startup that aims to become the Kickstarter of Silicon Valley. It pegs its service as an online marketplace that gives other startups the opportunity to post their elevator pitch, and small investors the chance to realize a massive return on their gamble. The company acts as the fund manager and takes care of the details, including the certification of every team that applies to receive an investment.
“Having gone through the Y Combinator rigors ourselves, we know the program selects and nurtures solid entrepreneurs, and those we’ve selected to invest in bear that prediction out,” said Alex Mittal, CEO and co-founder of FundersClub. “We’re thrilled to see the model catch fire so quickly, and look forward to working closely with these and other deserving companies as a trusted investor and advisor.”
Out of the $1.3 million in funding announced today, social advertising tool Virool bagged $509,800 courtesy of 70 investors, FundersClub raised $463,801 from 85 investors, and the rest is split up among Coinbase, Sponsorfied and Tracks.by.
FundersClub is disrupting the VC scene by empowering individuals to invest while making it easier for emerging companies to grow and become profitable. This idea earned the company $6 million from Andreessen Horowitz, Y-Combinator and Intel Capital, among other big name investors.
SiliconAngle CEO John Furrier discussed the startup and its impact on the VC scene shortly after the financing. He brought up the regulatory risks that FundersClub could face in the future, and elaborated on what this means for Silicon Valley.