What is FundersClub's business model? Do I pay a fee?

FundersClub is an online VC that partners with the best entrepreneurs to help them attain success; like other VCs, we do not charge entrepreneurs for taking our capital.

FundersClub receives carried interest on its investments, which is a percentage of the profits from an investment. We believe this helps align our incentives with those of both our investor members and our portfolio companies since we have a strong incentive to facilitate successful outcomes for all parties. Additionally, FundersClub receives management fees on certain funds, which helps cover our operating expenses.

A portion of the money that our investor members invest are set aside within a given fund to covers legal and accounting costs as an administrative cost (e.g., setting up the fund, annual state filings and taxes, annual tax return preparation for the fund and for every investor in the fund, etc). This Administrative Cost does not dilute the startup and is not paid to FundersClub -- if there is remaining Administrative Cost capital left at the end of the fund, it would be returned to the investor members of that fund. 

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