What is FundersClub Auto-Invest?
By subscribing to FundersClub Auto-Invest, you get access to investment opportunities earlier than other FundersClub members. When we make single-asset funds available for investment on FundersClub, we will automatically create an investment reservation for you. You then have 5 days to complete your investment, opt-out, or change the amount.
What are the benefits of investing with FundersClub Auto-Invest?
FundersClub Auto-Invest subscribers have reserved spots in our investment opportunities. Many of our funds get oversubscribed within a few days and occasionally within hours of launch. Subscribing to Auto-Invest helps you get your investment to the front of the line and gives you the best chance of an assured investment.
Auto-Invest is also a great way to automatically build a diversified portfolio on FundersClub.
Can panel members subscribe to Auto-Invest?
Yes, panel members can subscribe to Auto-Invest. Their reservations will be made as soon as the fund is investable to panel members, typically about 24 hours before other members.
How do I set up FundersClub Auto-Invest?
You set-up Auto-Invest by selecting a default investment amount. You will also be able to indicate which investor profile you would like to use for Auto-Invest (you can invest as yourself, an entity, or using an IRA).
We will automatically make an investment reservation for you using your default investment amount and investor profile when a new qualifying single-asset fund becomes available for investment.
What is the minimum I can invest per deal with auto-invest?
The minimum you can invest with Auto-Invest is $3,000 per deal for single-company funds and $10,000 for multi-company funds.
What is the maximum I can invest per deal with auto-invest?
The maximum amount you can reserve with Auto-Invest is $50,000 for both single and multi-company funds. We might need to review your investment amount on a deal per deal basis to make sure we leave enough room for other FundersClub members.
How will I know when a new reservation is made for me?
You will receive a notice of reserved investment via email each time we make an Auto-Invest reservation for you.
What steps do I need to do to complete an investment reservation?
To complete an auto-invest reservation, you will need to sign your subscription documents and send your payment via ACH, wire or check.
What if I want to invest in a particular opportunity, but am unable to complete my investment within 5 days?
Simply reply to our “notice of reserved investment” email indicating you would like to invest and by when you will be able to sign your subscription documents and send your funds. We will then refrain from cancelling your investment after the 5 day window has passed unless we need to act otherwise.
Can I change the amount to invest in a specific opportunity?
Yes. You will be able to set a different amount for a specific investment by simply replying to the corresponding notice of reserved investment within 5 days of receiving the email.
Can I opt-out of an investment opportunity?
Yes. You will be able to opt-out of a specific investment by simply replying to the corresponding notice of reserved investment within 5 days of receiving the email.
What happens if I do not opt-out of the investment nor complete the investment within the 5 day window?
This will be handled on a case-by-case basis. In some cases, your investment reservation will remain open until the fund closing deadline, upon which incomplete investments will be cancelled. In other cases, such as when an investment opportunity is oversubscribed and there are investors on the waitlist, your investment will be cancelled after the 5 day window and your spot will be given to an investor on the waitlist.
Can I stop my subscription to Auto-Invest?
Yes, you can stop your Auto-Invest subscription at any time. You will be able to do so in your user settings or by contacting the FundersClub support team.
Am I guaranteed a spot in all FundersClub single-asset funds when I am an Auto-Invest subscriber?
With Auto-Invest, you will get an automatic reservation in most of our single asset funds. However, there are some instances when we will not be able to ensure you get a reservation (for example, some funds are only available to select investors at the startup founders request or some funds could get oversubscribed by panel members).
What happens if the fund is oversubscribed?
It is possible that a fund allocation is not large enough to support the full reservation amount for some or all Auto-Invest subscribers. For example, this could happen if panel members fill the allocation before the fund is made available to members, or if the total amount of auto-invest reservations is greater than the fund size. In that case, the FundersClub team will make reservations for Auto-Invest subscribers and put you on the waitlist or not make a reservation at all, on a case by case basis.
Can I lose access to the Auto-Invest feature?
We are only accepting a very limited number of members for the Auto-Invest feature. We reserve the right to remove access to the feature to any member, for any or no reason. For instance, we might want to remove access to Auto-Invest from members who opt-out from investment opportunities on a regular basis.
How frequently should I expect to invest through auto-invest?
The deal flow available for investment through FundersClub varies depending on what opportunities we find and make available for investment (for indication, 50+ funds were available in 2015).
Will I have access to multi-company funds with Auto-Invest?
Yes, FundersClub sometimes makes multi-company funds available for investment through its platform. Multi-company funds are another way to achieve a significant amount of diversification.