Other than having met FundersClub’s minimum Partnerships listing standards and having also passed review by the FundersClub Investment Committee, the managers of a given Partnership must also abide by a Code of Conduct for each fund that they list with FundersClub.
We believe that fiduciaries should provide as much transparency to investors as possible with regards to possible conflicts of interest on investments. Therefore, Partnerships must complete a Code of Conduct questionnaire for each listed fund, on a fund-by-fund basis, as follows:
For single-company funds:
- Are you receiving any economic benefit from the company outside of this fund? (e.g., Will you be receiving any compensation or advisory/founding shares in the company?) If yes, please describe.
- Are you investing personally in this company? If yes, are the terms for your personal investment the same as the terms for the fund investment?
- Are there any potential conflicts of interest associated with your investment in the company? If yes, please describe.
For multi-company funds:
- Do you plan to make investments in the companies that this fund invests in either personally or with another fund?
1a. Do you plan to invest at the same terms as this fund’s investment?, and
1b. What ratio will you apply for other capital to this fund’s capital? Will this ratio be the same for each investment?
- Do you plan to make investments in the companies that this fund invests in either personally or with another fund?Do you anticipate receiving any advisory shares in the companies in which this fund invests?
- Are there situations where you will use other capital instead of this fund’s capital to invest in an opportunity? If yes, please describe.
- Are you putting your own money into the fund or not? If yes, what % of the fund and/or what amount of $ will you put into the fund?