Investing in a fund does not come with the same level of information about a company as direct investment. You can expect to receive press updates about companies. For more detailed private company updates, it is up to the specific company to determine to what level of detail and frequency they would like to update FundersClub and its investors (we ask to receive updates and pass them on to fund investors, but that’s not always possible). While there is not an explicit requirement that FundersClub mandates, it is in the companies’ best interest to have investors on FundersClub in the loop and excited about the companies’ progress so that they can help promote its products and services and be helpful in other ways. The companies are not required to provide periodic financial statements (or audits) or other updates and this is one of the significant risks of investing in the startup space.
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