What are Investment Clubs
Post on: 16 Март, 2015 No Comment
Fundacity Investment Clubs allow individuals to co-invest in startups together with experienced angel investors, who each lead one Investment Club. The role of the Investment Club Leader is to find attractive startups, perform due diligence of the investment opportunity, negotiate investment terms and then give access to selected deals to members of their Club. In return for their work, Investment Club Leaders receive a carried interest, which is a percentage of future profit made when exiting from the investment.
In exchange for his deal access, all work necessary to evaluate this opportunity, as well as governance responsibilities and advisory to the startup until the exit, members of Fernando’s Investment Club involved in this deal pay him a carried interest (agreed in advance), but only if the investment is profitable upon the exit.
Fundacity facilitates the deal, linking the Club Leader with other investors through Investment Clubs platform. In addition, Fundacity, together with the associated law firms and fund managers, handles all of the administrative work for the deal. This involves setting up the investment vehicle, tax filings, documents signing, etc.
Free membership and no management fees. It is free to be a member of Fundacity Investment Clubs and you don’t need to pay management fees for the deals you take part in.
Low Investment Minimums. you can invest as little as $2500 in one startup, as opposed to $25.000-$250.000 normally required if you invest in a VC fund or a startup directly. This way Fundacity provides you an easier way to build a diversified portfolio.
Accreditation. Access to investment opportunities presented through Fundacity Investment Clubs is restricted to accredited investors only. This is a short questionnaire that helps check your suitability to invest with us.
Browse Investment Clubs. Each Investment Club is lead by an experienced angel investor. Each Club and its Leader has a profile outlining their experience, deals already done and number/type of future investments planned. Members can review these profiles and decide which Club they would like to join. Joining a Club does not commit you to anything and you can opt out at any time.
Browse deals. Members can review live investments in each of the Investment Club and read more information about the startup investment opportunitites, including their business overview, pitch decks, team information and latest traction figures.
Live Presentation. Founders of the startup will present in-person to Members of an Investment Club during the fundraising period. This will serve as an opportunity for investors to ask questions and get to know the entrepreneurs.
Investment terms. the investment terms are unique in each deal and are negotiated by the Club leader and the Startup founders. Members invest on the same terms as the Club Leader.
Management. The investment is managed by both the Lead Investor and Fundacity, which gives the investor professional governance of its investment, thereby reducing risks.
Legal documents. Fundacity has developed a set of standardised contracts to help invest safely and easily. Once you decide to invest you can easily sign and submit legal documents online.
Payments. Payments can be executed online using credit cards or via bank transfer.