A small portion of each fund’s capital is set aside to cover lifetime administrative costs of the fund, such as mandatory state and SEC filing fees, K-1 tax form preparation, and banking costs. The administrative costs for different funds may vary. Neither FundersClub Inc. nor any of its employees receive any compensation from the administrative costs. Since administrative costs are typically front-loaded, such costs are intended to operate the fund to maturity without the need for further capital from investors beyond their initial investment. Any unused administrative costs are returned to investors along with any distribution proceeds from the underlying investment.