SAN FRANCISCO, CA -- (Marketwire) -- 12/20/12 -- FundersClub (www.fundersclub.com), the world's first online venture capital platform, today announced that it has completed a number of investments -- bringing the total invested by the less than 5-month-old, revolutionary investment platform to $1.3 million. Coinbase, a wallet for the digital, decentralized currency bitcoin; Sponsorfied, a marketplace for sponsorships; and Tracks.by, a company that creates marketing campaigns between brands and artists around the world; join social video advertising startup Virool and FundersClub itself as the first group of FundersClub-funded startups. All hail from the Y Combinator Summer 2012 batch.
"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."
Transforming venture capital from firm to platform, FundersClub has created a unique online marketplace that allows accredited investors to become equity holders in FundersClub-managed venture funds designed to finance pre-screened private companies. As a result, deserving companies get larger, more consolidated infusions of capital from venture funds consisting of accredited investors, and access to a highly connected and experienced group of individuals with a vested interest in helping the company succeed via introductions, advice and other value-added assistance.
"FundersClub is much more than a source of capital, it gives us the ability to connect with valuable partners," said Baldwin Cunningham, co-founder of Sponsorfied. "Right after our fund closed on the platform, one of the fund investors reached out and offered us amazing resources. There is really nothing that compares."
"The biggest asset in any business is its people," said Alex Debelov, Virool co-founder and CEO. "You either want to hire the best people or get them involved as investors. FundersClub allows entrepreneurs to get some of the brightest people involved with their startup, which can dramatically impact its later success."
The $1.3 million invested by FundersClub includes five separate funds, each created to finance a single company. Those funds include: the Coinbase fund, which raised $165,785 from 31 investors; the Tracks.by fund, which raised $87,500 from 28 investors; the Sponsorfied fund, which raised $98,400 from 29 investors; the Virool fund, which raised $509,800 from 70 investors; and FundersClub's own fund, which raised $463,801 from 85 investors.
"FundersClub made fundraising a breeze," said Brian Armstrong, founder and CEO of Coinbase. "The angel investors in its network were much more willing to write checks at our stage, and could easily complete all the paperwork online. This is how fundraising should be."
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