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Refer A Startup To FundersClub For Crowdfunding, Get Paid If It Exits

Think you know about the hottest startups before anyone else? Equity crowdfunding platform and online venture firm FundersClub wants you to be their eyes and ears, so they’re offering to give you 10 percent of their carry (profit) if a startup you refer to them has a big exit. The FundersClub Refer program could win it better deal flow so it can rise above the competitors cropping up in the crowdfunding space. So here’s how it all works. FundersClub’s job is to find promising startups, secure space in their next funding round, and then allow FundersClub community members who are accredited investors (over $1 million in net worth to invest) to participate in that round by investing cash in exchange for equity. It offers deal flow to people outside the chummy insiders’ circle of Silicon Valley venture capitalists. To augment the elite introductions and mentorship provided by traditional VCs, crowdfunding offers startups an army of evangelists, testers, customers and connections. FundersClub finds the deals and does the due diligence, the crowdfunders provide cash and whatever else they can help with, and the startup hands out equity. FundersClub makes money by charging a performance-based carried interest of around 20-30 percent. That means if a startup it […]

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