SAN FRANCISCO, CA--(Marketwire - Feb 28, 2013) - FundersClub (www.fundersclub.com), the world's first online venture capital platform, today announced that it has invested in a batch of enterprise software companies -- marking its first investment in the hot space and bringing the total invested by the 7-month-old platform to more than $2.5 million to date. inDinero, an accounting software suite; TinderBox, the leading cloud-based software platform for sales efficiency and brand consistency; and a quality assurance software startup in private alpha, each received an investment from FundersClub together totaling more than $800,000.
"From helping business owners better manage their money to streamlining the business proposal process, our latest group of investments exemplifies what enterprise software is all about -- simplifying the way we do business," said Alex Mittal, CEO and co-founder of FundersClub. "Each has already demonstrated amazing traction in its respective field, and I can't think of better companies to represent FundersClub's first investments in enterprise technology."
The investments were facilitated through FundersClub's unique online marketplace that allows accredited investors to become equity holders in FundersClub-managed venture funds designed to finance pre-screened private companies. It included three separate funds, each created to finance a single company. 151 members participated in the three funds including executives from Bank of America, Cisco, Salesforce, and Samsung -- with the inDinero fund receiving the largest investment.
"The great thing about FundersClub is that you get a very diverse pool of pre-qualified investors who you wouldn't otherwise know," said Jessica Mah, CEO and co-founder of inDinero. "I've met some great individuals through the platform who have helped the company. I wish I had this back in 2009 when I started inDinero."
More than 5,000 accredited investors are FundersClub members -- creating a network of highly connected and experienced individuals with a vested interest in helping the company, and the FundersClub community at large, succeed. Investors benefit from greater access to private investment opportunities, a more convenient investment process and the ability to diversify with relatively small amounts of capital.
"We're a prime example of the FundersClub network effect," said Dustin Sapp, president and co-founder of Indianapolis-based TinderBox. "A member referred us to the platform, which led to an investment that was the last piece we needed to finalize our Series B round. The real power of FundersClub isn't the money itself, it's the people behind it -- and that's priceless no matter where you're based."
FundersClub reviews each prospective company via an internal Investment Committee, comprised of VC and angel investors, entrepreneurs, and operators, to confirm the company meets criteria for listing; and by the FundersClub Angel Panel, a member-driven vetting group, to assess community demand. Since FundersClub's launch in July 2012, this process has filtered hundreds of referred companies down to 15 to receive funding via the platform.
Now that the funds have closed, FundersClub's management entity, FundersClub Management LLC, manages the payment and investing process and serves as the fund manager. Because FundersClub acts as the single point of contact between fund investors and the company, companies are spared the headache of coordinating a large group of investors -- making accepting group investments an attractive option for private companies.
The platform currently features early, mid- and late-stage private U.S. technology companies from Silicon Valley and beyond. The typical company listed on FundersClub is a startup with high growth and a reputable team.
To become a FundersClub member or apply to receive FundersClub investment, visit www.fundersclub.com.
FundersClub is the world's first online venture capital platform. A member of the National Venture Capital Association (NVCA), FundersClub is a venture capital advisor and is governed by the same legal structures as traditional venture capital firms. What distinguishes FundersClub is its unique online marketplace that allows accredited investors to become equity holders in FundersClub-managed venture funds, which then fund pre-screened private companies. Each funded FundersClub startup benefits from the capital, the advice, and the professional networks of its associated venture fund investors, but are spared from the overhead of interfacing with a crowd of investors by receiving capital in a traditional venture capital fund format. Investors benefit from greater access to private investment opportunities, a more convenient investment process and the ability to diversify with relatively small amounts of capital.
Launched in 2012 by serial entrepreneurs and investors Alex Mittal and Boris Silver, the company is backed by top angels and VC firms, including: Andreessen Horowitz, First Round Capital, Intel Capital, Spark Capital, Tim Draper and more.
FundersClub operates and manages all venture funds. All FundersClub members with access to investment opportunities have certified as accredited investors.