There is no membership fee for being a part of FundersClub. Reviewing prospective investment opportunities is free. FundersClub does not charge any commission or other transaction-based compensation on the money you invest in each fund.
- Fees for investing in Single Company Funds: Single company funds are assessed a performance-based carry ranging from 1-30%. Carry is a percent of any profits from a fund. The carry for a given fund is noted on each fund profile and is typically around 20%.
- Fees for investing in Multi Company Funds: Multi company funds are assessed a performance-based carry ranging from 1-30% and an average annual management fee of 0.25%-3%. Carry is a percent of any profits from a fund. Management fees are paid to the fund manager as compensation for managing the fund’s investments. The carry and management fee for a given fund is noted on each fund profile and is typically around 20% carry and 0.5-2% management fee.
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 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.