When you invest in a FundersClub fund, you are purchasing an ownership interest in a venture capital fund that holds company stock or convertible notes in one or more private companies. For single-company funds, there is a 1:1 relationship of fund dollars to underlying asset dollars, excluding the nominal administrative costs. Although FundersClub is the shareholder of record, this investment mechanism allows you to gain financial exposure to companies similar to investing directly, enabling you to participate in startup investing via better access, smaller check sizes, and lower fees. Upon a liquidity event such as an acquisition or IPO, you will receive your portion of the proceeds when they become available for distribution.
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